Declared Dividend • May 11
Dividend of kr3.00 announced Shareholders will receive a dividend of kr3.00. Ex-date: 20th May 2026 Payment date: 26th May 2026 Dividend yield will be 6.6%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (81% earnings payout ratio) and cash flows (70% cash payout ratio). The dividend has increased by an average of 4.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 02
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: kr1.47 (up from kr1.43 in 1Q 2025). Revenue: kr306.8m (up 9.6% from 1Q 2025). Net income: kr36.9m (up 2.7% from 1Q 2025). Profit margin: 12% (in line with 1Q 2025). Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. Buy Or Sell Opportunity • Apr 24
Now 21% undervalued Over the last 90 days, the stock has risen 15% to kr68.80. The fair value is estimated to be kr87.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 6.1% per annum. Earnings are also forecast to grow by 8.3% per annum over the same time period. Anuncio • Apr 17
Björn Borg AB (Publ) Announces Board Declining Re-Elections Björn Borg AB (publ) announced Fredrik Lövstedt and Alessandra Cama have declined re-election. Buy Or Sell Opportunity • Mar 31
Now 22% undervalued Over the last 90 days, the stock has risen 10% to kr69.10. The fair value is estimated to be kr88.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 6.4% per annum. Earnings are also forecast to grow by 8.5% per annum over the same time period. Price Target Changed • Feb 16
Price target increased by 7.6% to kr67.50 Up from kr62.75, the current price target is an average from 2 analysts. New target price is 10% above last closing price of kr61.10. Stock is up 2.2% over the past year. The company is forecast to post earnings per share of kr3.99 for next year compared to kr3.66 last year. Reported Earnings • Feb 16
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: kr3.66 (up from kr2.89 in FY 2024). Revenue: kr1.04b (up 5.5% from FY 2024). Net income: kr92.1m (up 27% from FY 2024). Profit margin: 8.8% (up from 7.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.8%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 21% per year. Anuncio • Feb 14
Björn Borg AB (publ) Proposes Dividend for the Year 2025 Björn Borg AB (publ) board of Directors has decided to propose to the 2025 Annual General Meeting that a dividend of SEK 3.00 (3.00) per share be paid for the financial year 2025, corresponding to 82% (104) of profit after tax. The dividend will be paid in full, subject to approval by the Annual General Meeting, at the end of May, 2026. The Board of Directors' proposal corresponds to a transfer to shareholders of SEK 75.4 million (75.4). Buy Or Sell Opportunity • Jan 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.3% to kr58.60. The fair value is estimated to be kr73.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 17%. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings are also forecast to grow by 6.4% per annum over the same time period. Reported Earnings • Nov 15
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: kr1.47 (up from kr1.39 in 3Q 2024). Revenue: kr303.1m (up 6.3% from 3Q 2024). Net income: kr36.9m (up 5.5% from 3Q 2024). Profit margin: 12% (in line with 3Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.3%. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Nov 07
Upcoming dividend of kr1.50 per share Eligible shareholders must have bought the stock before 14 November 2025. Payment date: 20 November 2025. Payout ratio is on the higher end at 89%, and the cash payout ratio is above 100%. Trailing yield: 4.7%. Within top quartile of Swedish dividend payers (4.0%). Higher than average of industry peers (1.9%). Recent Insider Transactions • Aug 20
Independent Director recently sold kr2.9m worth of stock On the 15th of August, Fredrik Lovstedt sold around 50k shares on-market at roughly kr57.62 per share. This transaction amounted to 5.3% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr2.8m more than they bought in the last 12 months. Reported Earnings • Aug 17
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: kr0.16 (down from kr0.26 in 2Q 2024). Revenue: kr236.3m (up 11% from 2Q 2024). Net income: kr3.95m (down 39% from 2Q 2024). Profit margin: 1.7% (down from 3.1% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 49%. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jun 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Director Cecilia Bonstrom was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • May 19
Independent Director recently bought kr365k worth of stock On the 16th of May, Jens Hogsted bought around 6k shares on-market at roughly kr60.88 per share. This transaction increased Jens' direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr395k more in shares than they have sold in the last 12 months. New Risk • May 12
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 104% Cash payout ratio: 122% Dividend yield: 5.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Upcoming Dividend • May 09
Upcoming dividend of kr1.50 per share Eligible shareholders must have bought the stock before 16 May 2025. Payment date: 22 May 2025. Trailing yield: 5.3%. Within top quartile of Swedish dividend payers (4.0%). Higher than average of industry peers (2.0%). Anuncio • May 05
Björn Borg AB (Publ) Announces Heiner Olbrich, Not Available for Re-Election as A Board Member and Chairman of the Board Björn Borg AB (publ) announced the Nomination Committee was recently informed that the current Chairman of the Board, Heiner Olbrich, who was originally proposed to continue as Chairman, is not available for re-election as a Board member and Chairman of the Board. Buy Or Sell Opportunity • Apr 30
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at kr56.80. The fair value is estimated to be kr71.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings are also forecast to grow by 10.0% per annum over the same time period. Reported Earnings • Apr 27
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: kr2.89 (down from kr3.02 in FY 2023). Revenue: kr989.7m (up 14% from FY 2023). Net income: kr72.7m (down 4.3% from FY 2023). Profit margin: 7.3% (down from 8.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 8.1%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Anuncio • Apr 09
Björn Borg AB (publ), Annual General Meeting, May 15, 2025 Björn Borg AB (publ), Annual General Meeting, May 15, 2025, at 17:30 W. Europe Standard Time. Location: at gate: 01`s premises, frosundaviks alle 1, 169, 70 sweden., solna Sweden Board Change • Mar 14
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Johanna Schottenius was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 26
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: kr2.89 (down from kr3.02 in FY 2023). Revenue: kr989.7m (up 14% from FY 2023). Net income: kr72.7m (down 4.3% from FY 2023). Profit margin: 7.3% (down from 8.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 8.1%. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Anuncio • Nov 19
Björn Borg AB (publ) to Report Q1, 2025 Results on May 15, 2025 Björn Borg AB (publ) announced that they will report Q1, 2025 results on May 15, 2025 New Risk • Nov 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 41% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (41% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Price Target Changed • Aug 19
Price target increased by 8.1% to kr67.00 Up from kr62.00, the current price target is an average from 2 analysts. New target price is 9.4% above last closing price of kr61.22. Stock is up 66% over the past year. The company is forecast to post earnings per share of kr3.18 for next year compared to kr3.02 last year. Reported Earnings • Aug 18
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: kr0.26 (up from kr0.17 in 2Q 2023). Revenue: kr220.8m (up 33% from 2Q 2023). Net income: kr6.52m (up 56% from 2Q 2023). Profit margin: 3.0% (up from 2.5% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to kr63.80, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Luxury industry in Europe. Total returns to shareholders of 132% over the past three years. Board Change • Jun 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Johanna Schottenius was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • May 29
Independent Director recently bought kr335k worth of stock On the 23rd of May, Jens Hogsted bought around 6k shares on-market at roughly kr55.78 per share. This transaction increased Jens' direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: kr0.84 (vs kr0.99 in 1Q 2023) First quarter 2024 results: EPS: kr0.84 (down from kr0.99 in 1Q 2023). Revenue: kr260.8m (up 5.6% from 1Q 2023). Net income: kr21.2m (down 14% from 1Q 2023). Profit margin: 8.1% (down from 10.0% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 24
Price target increased by 11% to kr62.00 Up from kr56.00, the current price target is provided by 1 analyst. New target price is 22% above last closing price of kr51.00. Stock is up 38% over the past year. The company is forecast to post earnings per share of kr3.93 for next year compared to kr3.02 last year. Reported Earnings • Feb 26
Full year 2023 earnings released: EPS: kr3.02 (vs kr2.02 in FY 2022) Full year 2023 results: EPS: kr3.02 (up from kr2.02 in FY 2022). Revenue: kr891.8m (up 6.8% from FY 2022). Net income: kr76.0m (up 49% from FY 2022). Profit margin: 8.5% (up from 6.1% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: kr1.27 (vs kr0.88 in 3Q 2022) Third quarter 2023 results: EPS: kr1.27 (up from kr0.88 in 3Q 2022). Revenue: kr268.0m (up 7.8% from 3Q 2022). Net income: kr32.0m (up 44% from 3Q 2022). Profit margin: 12% (up from 8.9% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 20
Second quarter 2023 earnings released: EPS: kr0.17 (vs kr0.01 in 2Q 2022) Second quarter 2023 results: EPS: kr0.17 (up from kr0.01 in 2Q 2022). Revenue: kr165.6m (up 2.5% from 2Q 2022). Net income: kr4.19m (up kr3.93m from 2Q 2022). Profit margin: 2.5% (up from 0.2% in 2Q 2022). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 26% per year. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: kr0.99 (vs kr0.92 in 1Q 2022) First quarter 2023 results: EPS: kr0.99 (up from kr0.92 in 1Q 2022). Revenue: kr250.2m (up 10% from 1Q 2022). Net income: kr24.8m (up 7.2% from 1Q 2022). Profit margin: 9.9% (in line with 1Q 2022). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 27
Price target increased by 10% to kr54.00 Up from kr49.00, the current price target is provided by 1 analyst. New target price is 45% above last closing price of kr37.20. Stock is down 25% over the past year. The company is forecast to post earnings per share of kr3.57 for next year compared to kr2.02 last year. Reported Earnings • Feb 24
Full year 2022 earnings released: EPS: kr2.02 (vs kr3.42 in FY 2021) Full year 2022 results: EPS: kr2.02 (down from kr3.42 in FY 2021). Revenue: kr861.0m (up 12% from FY 2021). Net income: kr50.9m (down 41% from FY 2021). Profit margin: 5.9% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.0% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Nov 25
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from kr829.0m to kr810.0m. EPS estimate also fell from kr2.40 per share to kr1.89 per share. Net income forecast to grow 40% next year vs 9.4% growth forecast for Luxury industry in Sweden. Consensus price target up from kr49.00 to kr51.00. Share price was steady at kr29.45 over the past week. Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: kr0.88 (vs kr1.60 in 3Q 2021) Third quarter 2022 results: EPS: kr0.88 (down from kr1.60 in 3Q 2021). Revenue: kr248.6m (up 3.5% from 3Q 2021). Net income: kr22.2m (down 45% from 3Q 2021). Profit margin: 8.9% (down from 17% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Luxury industry in Europe. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target increased to kr49.00 Up from kr45.00, the current price target is provided by 1 analyst. New target price is 77% above last closing price of kr27.75. Stock is down 34% over the past year. The company is forecast to post earnings per share of kr2.40 for next year compared to kr3.42 last year. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: kr0.01 (vs kr0.54 in 2Q 2021) Second quarter 2022 results: EPS: kr0.01 (down from kr0.54 in 2Q 2021). Revenue: kr167.0m (up 2.5% from 2Q 2021). Net income: kr262.0k (down 98% from 2Q 2021). Profit margin: 0.2% (down from 8.3% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 9.1%, compared to a 10% growth forecast for the Luxury industry in Sweden. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 19% share price decline to kr31.65, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 19x in the Luxury industry in Europe. Total returns to shareholders of 41% over the past three years. Reported Earnings • May 21
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: kr0.92 (up from kr0.85 in 1Q 2021). Revenue: kr236.6m (up 28% from 1Q 2021). Net income: kr23.1m (up 8.5% from 1Q 2021). Profit margin: 9.8% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 5.3%, compared to a 16% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 18% per year. Price Target Changed • Apr 27
Price target increased to kr59.00 Up from kr45.00, the current price target is provided by 1 analyst. New target price is 27% above last closing price of kr46.35. Stock is up 98% over the past year. The company is forecast to post earnings per share of kr3.80 for next year compared to kr3.42 last year. Reported Earnings • Mar 01
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: kr3.42 (up from kr0.75 in FY 2020). Revenue: kr768.2m (up 8.9% from FY 2020). Net income: kr86.0m (up 357% from FY 2020). Profit margin: 11% (up from 2.7% in FY 2020). Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 7.8%, compared to a 14% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Anuncio • Feb 25
Björn Borg AB (publ) to Report Fiscal Year 2022 Results on Feb 17, 2023 Björn Borg AB (publ) announced that they will report fiscal year 2022 results on Feb 17, 2023 Price Target Changed • Nov 23
Price target increased to kr54.00 Up from kr43.00, the current price target is provided by 1 analyst. New target price is 17% above last closing price of kr46.00. Stock is up 157% over the past year. The company is forecast to post earnings per share of kr3.34 for next year compared to kr0.75 last year. Reported Earnings • Nov 20
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: kr243.9m (up 8.5% from 3Q 2020). Net income: kr40.1m (up 56% from 3Q 2020). Profit margin: 16% (up from 12% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 17% share price gain to kr48.00, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 26x in the Luxury industry in Europe. Total returns to shareholders of 121% over the past three years. Price Target Changed • Aug 24
Price target increased to kr43.00 Up from kr34.00, the current price target is provided by 1 analyst. New target price is 12% above last closing price of kr38.50. Stock is up 117% over the past year. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS kr0.54 (vs kr0.75 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: kr162.8m (up 10.0% from 2Q 2020). Net income: kr13.5m (up kr32.4m from 2Q 2020). Profit margin: 8.3% (up from net loss in 2Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Major Estimate Revision • May 25
Consensus EPS estimates increase to kr1.98 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from kr730.0m to kr750.0m. EPS estimate increased from kr1.78 to kr1.98 per share. Net income forecast to grow 82% next year vs 37% growth forecast for Luxury industry in Sweden. Consensus price target up from kr34.00 to kr35.00. Share price rose 23% to kr28.95 over the past week. Reported Earnings • May 21
First quarter 2021 earnings released: EPS kr0.85 (vs kr0.42 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: kr195.5m (up 14% from 1Q 2020). Net income: kr21.3m (up 100% from 1Q 2020). Profit margin: 11% (up from 6.2% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 20% share price gain to kr28.10, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 26x in the Luxury industry in Europe. Total returns to shareholders of 6.8% over the past three years. Reported Earnings • Mar 02
Full year 2020 earnings released: EPS kr0.75 (vs kr1.55 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: kr705.2m (down 6.8% from FY 2019). Net income: kr18.8m (down 52% from FY 2019). Profit margin: 2.7% (down from 5.1% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 02
Revenue and earnings miss expectations Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 38%. Over the next year, revenue is forecast to grow 7.2%, compared to a 19% growth forecast for the Luxury industry in Sweden.