Earnings Miss: Björn Borg AB (publ) Missed EPS By 49% And Analysts Are Revising Their Forecasts

Last week saw the newest second-quarter earnings release from Björn Borg AB (publ) (STO:BORG), an important milestone in the company's journey to build a stronger business. It looks like a pretty bad result, all things considered. Although revenues of kr226m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 49% to hit kr0.16 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Björn Borg from dual analysts is for revenues of kr1.05b in 2025. If met, it would imply a satisfactory 2.2% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be kr3.43, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.05b and earnings per share (EPS) of kr3.55 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Björn Borg

The consensus price target held steady at kr62.25, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Björn Borg's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2025 being well below the historical 7.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Björn Borg.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Björn Borg. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr62.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Björn Borg going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Björn Borg that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.