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Björn Borg

Quarterly Report May 15, 2009

3142_10-q_2009-05-15_7d946d18-02b5-48db-9535-1090ea3f6434.pdf

Quarterly Report

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BJÖRN BORG AB INTERIM REPORT FOR THE FIRST QUARTER JANUARY – MARCH 2009

Focus on underwear, innovative design and product development

January 1 – March 31, 2009

  • Brand sales (reported excluding VAT as of Q1 2009) increased by 9 percent to SEK 602 million (551).
  • The Group's net sales increased by 19 percent to SEK 164.7 million (138.7).
  • The gross profit margin was 49.3 percent (51.9).
  • Operating profit increased by 3 percent to SEK 37.6 million (36.5).
  • Profit after tax increased by 8 percent to SEK 28.9 million (26.8).
  • Earnings per share increased by 7 percent to SEK 1.15 (1.07). Fully diluted earnings per share amounted to SEK 1.15 (1.07).

Comment from the President

"Developments during the first quarter show that despite a continued weak and uncertain market we see interest in the brand. At the same time we were positively affected by strong currency effects this quarter. In the strategic review we conducted this spring, we saw strong opportunities for our new vision: 'to become the champion of fashion underwear.' We will achieve this by being creative and innovative in terms of our range of underwear, but also by contributing to the profitability for our distributors and retailers," says President Arthur Engel.

SEK million January-March
2009
January-March
2008
April 2008-
March 2009
Full-year
2008
Brand sales* 602 551 2,022 1,971
Net sales 164.7 138.7 552.5 526.6
Gross profit margin, % 49.3 51.9 53.0 53.8
Operating profit 37.6 36.5 129.8 128.8
Operating margin, % 22.8 26.3 23.5 24.5
Profit after tax 28.9 26.8 101.3 99.2
Earnings per share, SEK** 1.15 1.07 4.05 3.96
Earnings per share after dilution, SEK*** 1.15 1.07 4.05 3.96

*Reported as of Q1 2009 as estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.

President's comment

The first quarter produced positive figures for brand sales as well as consolidated sales and profit. At the same time we continue to face very tough and uncertain market conditions, which are affecting us as well, especially in our large, established markets. Our newer markets, which are in the establishment stage, reported continued growth, though still from low levels.

The increase in consolidated sales during the quarter was due to higher sales, primarily in the footwear product area, but also was affected by strong currency effects which we do not expect to continue during the remainder of the year. Operating profit rose slightly, but was charged according to plan with higher expenses related to aggressive marketing efforts, primarily in the U.S., and changes in the organization to meet future requirements and growth.

Champion of fashion underwear

In the strategic review we conducted this spring, we turned our attention from the current market situation to analyze Björn Borg's long-term potential and how we will navigate going forward. Our vision is that Björn Borg will be "the champion of fashion underwear." This may not sound new, but for us it represents a shift from a broader fashion focus to a targeted emphasis on an area where we have the biggest potential to be a market leader – creativity and innovative thinking in underwear. This means more, and more structured, investments in product development with the right approach and competence, and that we will create a culture where we work every day to challenge the market, surprise and exceed customers' expectations.

Today our new business area manager for underwear, Malin Wåhlstedt, takes over. She worked most recently with H&M, where she gained extensive experience in the underwear segment. We will continue to strengthen and shape the organization in line with our strategy. Underwear will remain the Group's largest and most important business area. In addition, we have separate business areas for adjacent products, such as swimwear, socks and a small apparel line, for footwear and licensed products.

We will maintain the same fast pace in our international expansion, but with clearer criteria and demands on our distributors and markets. E-commerce will become an increasingly important channel. We have already begun to develop a new, innovative environment for brand stores and shop-in-shops internationally – an important piece of the puzzle to build the brand and show what it stands for, especially in new markets. At the same time, we will maintain and further develop our business model, with costeffective expansion through outside distributors.

Implementation of the new strategic focus will begin during the second quarter.

Arthur Engel President

Operations

Brand sales

As of the first quarter 2009, brand sales are defined as sales of Björn Borg products at the consumer level, excluding VAT (previously including VAT), based on reported wholesale sales. During the first quarter brand sales amounted to SEK 602 million (551), an increase of 9 percent compared with the same quarter of 2008.

Brand sales in the underwear product area increased by almost 4 percent during the first quarter compared with the same quarter last year. Sales in the footwear product area jumped by more than 80 percent during the first quarter, largely due to higher exports to the Netherlands, who introduced shoes during 2008.

Adjacent products experienced increased brandsales of approximately 4 percent during the quarter, while brand sales for licensees decreased by approximately 11 percent, largely due to postponed deliveries.

Brand sales in new markets continued to rise, where the development in England is particularly gratifying. The established markets reported a weaker development. Brand sales rose slightly in the Netherlands compared with the same quarter of 2008, fully referable to growth in sales of footwear. The negative development in Norway turned positive during the first quarter of 2009, while Sweden and Denmark showed decreased sales.

Björn Borg stores

No new Björn Borg stores were opened during the first quarter 2009. At the end of the period there were 44 (36) Björn Borg stores, of which 11 (10) were Group-owned.

Brand sales* of Björn Borg products January – March 2009. Total SEK 602 million (551)

* Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales. ** Underwear: Men's and women's underwear; Complementary products: Men's clothing, swimwear and socks; Licensees: Bags, fragrances,

eyewear and women's clothing in the Netherlands.

The Group's development

Sales increased during the first quarter with slightly higher operating profit.

Quarterly net sales and operating profit

Net sales

First quarter, January–March 2009

Group sales during the first quarter amounted to SEK 164.7 million (138.7), an increase of 19 percent, due in its entirety to higher export sales in the footwear product area and the positive effect of a higher U.S. dollar.

Profit

First quarter, January–March 2009

The gross profit margin decreased during the first quarter to 49.3 percent (51.9), largely due to the higher U.S. dollar, but also the larger share of the cost of goods sold represented by the footwear product area.

Operating profit amounted to SEK 37.6 million (36.5) during the quarter, with an operating margin of 22.8 percent (26.3). Profit before tax increased during the period to SEK 39.2 million (37.3).

The increase in operating profit compared with the same quarter of 2008 was mainly due to higher sales. Profit was affected by additional costs, compared to corresponding period last year, referable to marketing investments in the U.S. and organizational changes to accommodate a further expansion.

The higher U.S. dollar slightly affected the Group's operating profit positively.

Development by business segment

The Group comprises a number of companies that operate under the Björn Borg brand on every level, from product development to distribution and consumer sales in its own concept stores.

Brand and other

Sales in the Brand and other segment primarily consist of royalty revenue, sales of services within the Björn Borg network and intra-Group services.

Net sales during the period reached SEK 43.8 million (31.0), an increase of 41 percent, mainly due to increased internal sales and increased brand sales.

Operating profit amounted to SEK 17.3 million (13.1) for the period. Profit was affected positively by higher sales in the network, but negatively by increased marketing expenses.

Product development

The Group has global responsibility for development, design and production of underwear, adjacent products and footwear. A licensee for clothing operates in the Benelux market.

The segment's net sales amounted to SEK 109.9 million (75.9) for the period, an increase of 45 percent. The increase was primarily due to substantially higher footwear exports by the footwear product area, mainly to the Netherlands, but also the higher U.S. dollar. Earlier deliveries to the Swedish distributor also affected sales positively.

Operating profit increased to SEK 18.7 million (8.9) as a result of the increased exports and higher U.S. dollar.

Distribution

The Björn Borg Group is the exclusive distributor in the underwear, adjacent products and footwear product areas in the Swedish and US markets.

Net sales in the Distribution segment rose to SEK 59.4 million (58.7) during the period, or by 1 percent. Growth was mainly due to higher footwear sales.

Operating profit decreased to SEK 2.5 million (14.8), mainly due to the stronger U.S. dollar, which affected gross profit negatively, but also to marketing investments in the U.S.

Retail

The Björn Borg Group owns and operates nine stores in the Swedish market that sell underwear, adjacent products, footwear and licensed products. Moreover, Björn Borg operates two factory outlets.

Net sales in the Retail segment amounted to SEK 11.9 million (11.1) for the period, an increase of 7 percent. For comparable stores, sales increased by 5 percent during the first quarter. The operating loss amounted to SEK –0.9 million (–0.3). Sales were affected positively by a higher share of discount sales compared with the same period last year, which also led to lower gross profit.

Intra-Group sales

Intra-Group sales amounted to SEK 60.4 million (38.0) during the period.

Operating area Revenue source Jan-March 2009
Sales, SEK thousands
Jan-March 2009
Operating profit, SEK thousands
Jan-March 2009
Operating margin
Brand and other Royalties and services 43,776 17,275 39%
Product development Products 109,942 18,719 17%
Distribution Wholesale sales 59,421 2,461 4%
Retail Retailers 11,887 –873 –7%
Less internal sales –60,352 - -
Total 164,674 37,582 23%

Seasonal variations

The Björn Borg Group is active in an industry with seasonal variations. Sales and earnings vary by quarter. With the current product mix, the second quarter is generally the weakest in terms of profit. See the figure on quarterly net sales and operating profit on page 3.

Investments and cash flow

Cash flow from operating activities in the Group amounted to SEK 12.8 million (19.4) for the first quarter 2009. The change in working capital was mainly due to increases in accounts receivable and inventories. The increase in accounts receivable related to the higher sales, while the increase in inventories was due to earlier deliveries of the summer collection from suppliers.

Total investments in tangible and intangible non-current assets amounted to SEK 1.5 million (0.4) for the period, the large part of which was attributable to a new enterprise system.

The increase in cash & cash equivalents amounted to SEK 11.3 million (18.9) for the first quarter 2009.

Financial position and liquidity

The Björn Borg Group's cash & cash equivalents (net cash position) amounted to SEK 252.8 million (206.3) at the end of the period. In addition, the Group has unutilized bank overdraft facilities of SEK 117.5 million. The equity/assets ratio was 70.0 percent (69.0). The company has no interest bearing liabilities.

Commitments and contingent liabilities

No changes were made with regard to pledged assets and contingent liabilities compared with December 31, 2008. For further information, see note 22 on page 44 of the annual report 2008.

Personnel

The average number of employees in the Group for the period January–March was 91 (86), of whom 57 were women.

Events after the balance sheet date

There were no significant events to report following the conclusion of the report period.

Annual General Meeting

The Annual General Meeting of Björn Borg AB was held at 5 pm (CET) on April 23, 2009 in Stockholm. The meeting resolved to pay a dividend of SEK 1.50 (1.50) per share to shareholders for the year 2008. Fredrik Lövstedt, Mats H Nilsson, Vilhelm Schottenius, Michael Storåkers and Nils Vinberg were re-elected to the Board of Directors, with Fredrik Lövstedt as Chairman of the Board. Monika Elling and Fabian Månsson were elected as new Directors.

Authorization to issue new shares, warrants and/or convertibles

In accordance to the Board of Directors' proposal, the Annual General Meeting authorized the Board of Directors, until the next Annual General Meeting, to resolve to issue new shares, warrants or convertibles on one or more occasions, with or without deviating from shareholders' preferential rights. The number of shares will increase in total by not more than 1,250,000.

Authorization to acquire and transfer the company's own shares

The Board of Directors was authorized, until the next Annual General Meeting, to resolve to acquire and transfer the company's own shares on one or more occasions, to the extent that the company's shareholding after such acquisitions does not exceed ten percent of all the shares in the company. Further, the Meeting authorized the Board of Directors, until the next Annual General Meeting, to resolve to transfer shares in the company to third parties on one or more occasions. Transfers are limited to the total number of shares held by the company at any given time.

Guidelines for executive compensation

The Meeting adopted the Board of Directors' proposal regarding compensation guidelines for senior executives, i.e., the President and other members of Senior Management.

Amendments to the articles of association

The Meeting adopted the Board's proposal to amend the articles of association regarding the method used and notice period to convene general meetings. The amendment is conditional on the amendments to the Swedish Companies Act regarding the notice period and methods used to convene general meetings entering into force. It was further resolved to change the objective clause in the articles of association to better adjust to the concept and the operation of the business.

Parent Company

Björn Borg AB (publ) is primarily engaged in intra-Group activities. In addition, the Parent Company owns 100 percent of the shares in Björn Borg Brands AB and Björn Borg Footwear Holding AB.

The Parent Company's net sales for the first quarter amounted to SEK 14.0 million (7.6). The loss before tax amounted to SEK –4.1 million (–5.1) for the first quarter. Cash & cash equivalents amounted to SEK 176.8 million (11.1) on March 31. For the period investments in tangible and intangible non-current assets amounted to SEK 0.9 million (0.2).

Significant risks and uncertainties

In its operations, the Björn Borg Group is exposed to risks and uncertainties. For further information, refer to pages 29–30 of the annual report 2008.

Transactions with related parties

During the period transactions were executed on market terms with Klockaren Fastighetsförvaltning i Varberg AB. For more detailed information, see note 11 on page 42 of the annual report 2008.

Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The same accounting principles were applied during the period as in 2008, as described on pages 36– 38 of the latest annual report, with the exceptions indicated below.

IAS 1 (Revised) Presentation of Financial Statements is effective January 1, 2009. The revised standard has affected the recognition of translation adjustments for foreign operations retroactively to December 31, 2008. These revenues and expenses were previously recognized directly in equity, but are now reported in a separate statement directly after the income statement. Another revision is the new terminology used in the financial reports. As of January 1, 2009 a new standard, IFRS 8 Operating Segments, takes effect. IFRS 8 is a disclosure standard and does not impact the Group's statement of comprehensive income, financial position, cash flow and changes in equity. The operating segments are unchanged compared with the latest annual report. None of the other new or amended standards and interpretations from IFRIC has had a significant impact on the financial position or results of the Group or the Parent Company.

Outlook 2009

As a policy, the company does not issue earnings forecasts.

Audit report

This interim report has not been reviewed by the company's sauditors.

Consolidated statement of comprehensive income

Condensed
SEK thousands January-March
2009
January-March
2008
April 2008-
March 2009
Full-year
2008
Net sales 164,674 138,748 552,482 526,556
Cost of goods sold –83,526 –66,803 –259,782 –243,058
Gross profit 81,148 71,946 292,700 283,498
Distribution expenses –29,047 –23,460 –110,967 –105,380
Administrative expenses –10,882 –8,993 –39,022 –37,133
Development expenses –3,636 –2,972 –12,898 –12,234
Operating profit 37,582 36,521 129,812 128,751
Net financial items 1,663 737 6,998 6,071
Profit before tax 39,245 37,258 136,809 134,822
Tax –10,322 –10,432 –35,509 –35,620
Profit for the period 28,924 26,826 101,300 99,202
Profit attributable to minority interests –27 –6 –12 8
Profit attributable to Parent Company's shareholders 28,897 26,820 101,288 99,210
Other comprehensive income
Translation adjustments for foreign operations 231 –536
Total comprehensive income for the period 28,128 26,820 101,288 98,674
Profit attributable to minority interests -27 -6 -12 8
Profit attributable to Parent Company's shareholders 29,155 26,826 101,300 98,666
Earnings per share, SEK 1.15 1.07 4.05 3.96
Earnings per share after dilution, SEK 1.15 1.07 4.05 3.96
Number of shares 25,059,184 25,036,984 25,059,184 25,059,184
Weighted average number of shares 25,059,184 25,036,984 24,989,684 25,041,134
Effect of dilution* 19,470 69,355 34,366
Weighted average number of shares after full dilution 25,078,654 25,106,339 24,989,684 25,075,500

* Björn Borg has three outstanding incentive programs based on warrants in Björn Borg AB: option schemes 2006:2, 2008:4 and 2008:5.

For more detailed information, see page 41 of the annual report 2008.

Consolidated statement of financial position

Condensed
SEK thousands March 31 March 31 December 31
Non-current assets 2009 2008 2009
Goodwill 13,944 13,944 13,944
Trademarks 187,532 187,532 187,532
Other intangible assets 2,033 880 1,696
Tangible non-current assets 14,611 17,170 15,366
Total non-current assets 218,120 219,526 218,538
Current assets
Inventories 37,141 23,398 33,752
Current receivables 124,653 87,007 106,197
Cash & cash equivalents 252,827 206,348 241,498
Total current assets 414,622 316,753 381,447
Total assets 632,742 536,279 599,985
Equity and liabilities
Equity 442,958 369,769 413,803
Deferred tax liabilities 34,247 32,884
Other non-current liabilities 45,334 82,864 46,816
Accounts payable 37,634 26,559 45,489
Other current liabilities 72,569 57,087 60,993
Total equity and liabilities 632,742 536,279 599,985

Consolidated statement of changes in equity

Condensed
SEK thousands January-March
2009
January-March
2008
Full-year
2008
Opening balance 413,803 342,943 342,943
Incentive programs 9,055
New share issue 694
Dividend –37,555
Minority interest in equity 27 6 –8
Total comprehensive income for the period 28,128 26,820 98,674
Closing balance 442,958 369,769 413,803

Consolidated statement of cash flows

Condensed
January-March January-March Full-year
SEK thousands 2009 2008 2008
Cash flow from operating activities
Before change in working capital 34,667 23,331 123,214
Change in working capital –21,837 –3,956 –36,260
Cash flow from operating activities 12,830 19,374 86,954
Cash flow from investing activities –1,501 –449 –5,073
Dividend –37,555
Incentive programs/new share issues 9,749
Cash flow from financing activities –27,806
Cash flow for the period 11,329 18,925 54,075
Cash & cash equivalents at beginning of period 241,498 187,423 187,423
Cash & cash equivalents at end of period 252,827 206,348 241,498

Key figures Group

SEK thousands January-March
2009
January-March
2008
April 2008-
March 2009
Full-year
2008
Gross profit margin, % 49.3 51.9 53.0 53.8
Operating margin, % 22.8 26.3 23.5 24.5
Profit margin, % 23.8 26.9 24.8 25.6
Return on capital employed, % 7.8 8.7 29.1 28.8
Return on average equity, % 7.4 7.5 24.9 26.2
Net profit for the period 28,897 26,820 101,288 99,210
Earnings per share, SEK* 1.15 1.07 4.05 3.96
Earnings per share after dilution, SEK 1.15 1.07 4.05 3.96
Number of shares 25,059,184 25,036,984 25,059,184 25,059,184
Weighted average number of shares 25,059,184 25,036,984 25,989,684 25,041,134
Effect of dilution 19,470 69,355 34,366
Weighted average number of shares after dilution 25,078,654 25,106,339 24,989,684 25,075,500
Equity/assets ratio, % 70.0 69.0 70.0 69.0
Equity per share, SEK 17.68 14.77 17.67 16.51
Investments in intangible assets 2,200 2,200
Investments in tangible assets 1,501 449 3,925 2,873
Depreciation and impairment losses for the period –1,975 –1,158 –7,793 –6,976
Average number of employees 91 86 91 88

Summary by segment

Group
SEK thousands January-March
2009
January-March
2008
April 2008-
March 2009
Full-year
2008
Operating revenue
Brand and other
External sales 19,689 15,029 61,931 57,272
Internal sales 24,087 16,005 93,102 85,020
43,776 31,034 155,033 142,292
Product development
External sales 81,712 60,279 272,042 250,608
Internal sales 28,230 15,612 99,196 86,579
109,942 75,891 371,238 337,187
Distribution
External sales 51,386 52,301 162,740 163,655
Internas sales 8,035 6,410 34,937 33,312
59,421 58,701 197,678 196,967
Retail
External sales 11,887 11,140 55,769 55,021
Internal sales 6 6
11,887 11,140 55,774 55,027
Eliminations –60,352 –38,027 –227,241 –204,916
Operating revenue 164,674 138,748 552,482 526,556
Operating profit
Brand and other 17,275 13,115 46,816 42,656
Product development 18,719 8,876 59,852 50,009
Distribution 2,461 14,816 15,120 27,475
Retail –873 –286 8,025 8,611
Operating profit 37,582 36,521 129,812 128,751

Quarterly data

Group Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 SEK thousands 2009 2008 2008 2008 2008 2007 2007 2007 Brand sales 602,183 475,378 562,835 381,246 551,062 520,690 527,296 331,246 Net sales 164,674 131,233 160,762 95,813 138,748 139,795 148,597 87,844 Gross profit margin, % 49.3 54.1 54.1 55.9 51.9 53.8 54.6 55.6 Operating profit 37,582 26,049 49,688 16,493 36,521 42,258 49,238 19,188 Operating margin, % 22.8 19.8 30.9 17.2 26.3 30.2 33.1 21.8 Profit after financial items 39,245 28,693 52,277 16,594 37,258 42,719 48,920 19,139 Profit margin, % 23.8 21.9 32.5 17.3 26.9 30.6 32.9 21.8 Earnings per share, SEK 1.15 0.91 1.50 0.48 1.07 1.22 1.42 0.57 Earnings per share after dilution, SEK 1.15 0.91 1.50 0.48 1.07 1.22 1.41 0.56 Number of Björn Borg stores at end of period 44 44 41 39 36 36 33 29 of which Björn Borg-owned stores 11 11 11 10 10 10 10 9

Parent Company income statement

Condensed
SEK thousands January-March
2009
January-March
2008
April 2008-
March 2009
Full-year
2008
Net sales 13,976 7,645 56,960 50 630
Cost of goods sold –1,405 –376 -8,004 –6,975
Gross profit 12,571 7,270 48,956 43,655
Distribution expenses –10,810 –8,128 -42,917 –40,235
Administrative expenses –4,158 –3,126 –16,506 –15,475
Development expenses –1,663 –1,251 -6,603 –6,190
Operating profit –4,060 –5,235 –17,070 –18,245
Net financial items –44 135 –187 1,716
RProfit before tax –4,105 –5,100 –17,257 –16,529
Appropriations –104 –104
Tax 1,080 1,428 4,558 4,424
Profit for the period –3,024 –3,672 –12,803 –12,209

Parent Company balance sheet

Condensed
March 31 March 31 December 31
SEK thousands 2009 2008 2008
Non-current assets
Tangible non-current assets 5,981 6,224 5,543
Shares in Group companies 54,497 54,497 54,497
Total non-current assets 60,478 60,721 60,040
Current assets
Receivables from Group companies 31,949 145,122 59,551
Current receivables 7,574 10,278 6,971
Cash & cash equivalents 176,777 11,076 220,348
Total current assets 216,300 166,475 286,870
Total assets 276,778 227,197 346,910
Equity and liabilities
Equity 145,678 182,376 149,782
Untaxed reserves 7,359 7,254 7,359
Due to Group companies 102,027 22,999 173,048
Accounts payable 8,030 4,856 7,713
Other current liabilities 13,685 9,711 9,008
Total equity and liabilities 276,778 227,197 346,910

About the Björn Borg Group

The Group owns the Björn Borg trademark and has operations in five product areas: clothing, footwear, bags, eyewear and fragrances. Björn Borg products are sold in fifteen markets, of which Sweden and the Netherlands are the largest. Operations are managed through a network of product and distribution companies which are either part of the Group or are independent companies with licenses for product areas and geographical markets. The Björn Borg Group has operations at every level from branding to consumer sales through its own Björn Borg stores. Total sales of Björn Borg products in 2008 amounted to approximately SEK 2 billion at the consumer level. Group net sales amounted to SEK 527 million in 2008, with 88 employees at year-end. The Björn Borg share is listed on NASDAQ OMX Nordic, Mid Cap list, since May 7, 2007.

Definitions

Gross profit margin Net sales less cost of goods sold divided by net sales.

Operating margin Operating profit as a percentage of net sales.

Profit margin Profit before tax as a percentage of net sales.

Equity/assets ratio Equity as a percentage of total assets.

Return on capital employed

Profit after financial items plus financial expenses as a percentage of average capital employed.

Return on equity

Net profit according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two.

Earnings per share

Earnings per share in relation to the weighted average number of shares during the period.

Earnings per share after dilution

Earnings per share adjusted for any dilution effect.

Brand sales

Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.

Björn Borg AB (publ) Stockholm, May 15, 2009

Arthur Engel President and CEO

Upcoming information dates:

The interim report January–June 2009 will be released on August 20, 2009 The interim report January–September 2009 will be released on November 12, 2009 The year-end report for 2009 will be released on February 11, 2010

For further information, please contact: Arthur Engel, President and CEO, telephone +46 8 506 33 700 Johan Mark, CFO, telephone +46 8 506 33 700

Björn Borg AB Götgatan 78 SE-118 30 Stockholm, Sweden www.bjornborg.com

Björn Borg is required to make public the information in this report in accordance with the Securities Market Act. The information was released for publication on May 15, 2009 at 7:30 a.m. (CET).

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