Marssiffrorna för den svenska klädmarknaden publicerades i morse. Försäljningen ökade med 6,5% från förra året.

We have lowered our estimates in response to expectations of slower economic growth and weaker consumer confidence. Despite these downward revisions the current valuation offers an attractive risk/reward profile, as the share price has fallen by around -17% and the expected return exceeds our required return. Consequently, we raise our recommendation to Accumulate (prev. Reduce) but lower our target price to SEK 55 per share (prev. SEK 62), mainly due to lower estimates.

Vad tycker analytiker Lucas egentligen om rapporten för det fjärde kvartalet från Björn Borg? Finns det chans för lönsam tillväxt inom en snar framtid och vad ligger bakom vår rekommendation och riktkurs?

Björn Borg delivered weak Q4 earnings due to a lower gross margin and higher operating expenses, which more than offset the benefits of strong revenue growth. The company’s earnings multiples for this year are at the upper end of our acceptable valuation range, with a P/E ratio of approximately 18x and an EV/EBIT of ~14x. At current valuations, we would like to see clearer evidence that the company can successfully expand its footwear category while maintaining solid profitability. Based on our updated estimates, we believe the stock is relatively fairly valued. As a result, we lower our recommendation to Reduce (prev. Accumulate) and adjust our target price to SEK 62 per share, primarily due to revised estimates.

Björn Borg publicerade sin Q4-rapport fredag 21/2, som visade stark tillväxt men ett minskat rörelseresultat. Head Coach Henrik Bunge intervjuas av analytiker Lucas Mattsson.