Update on the impact of the Corona virus on the Björn Borg Group
As previously communicated, Björn Borg AB estimates that the outbreak of the Corona virus will have substantial negative financial impact on the Björn Borg Group’s business.
The extent of such impact is difficult to assess, but the company continues to see negative financial effects of the outbreak and therefore estimates that both the turnover and the operating profit, partly during the first quarter, but mainly during the second and third quarters in 2020, will be less than the corresponding periods during 2019. Björn Borg maintain the long-term financial objectives previously communicated, but assess that they will not be possible to meet for 2020.
Björn Borg continues to take extensive measures to minimize the negative effects of the outbreak, including the previously announced short-term layoffs and the withdrawal of the proposal for dividend to shareholders. The Björn Borg Group further continues to take measures, in all markets, to reduce operational costs.
Björn Borg has, despite the strained situation, a good financial position with satisfactory liquidity. The interest-bearing net debt is as of today at the same level as on December 31, 2019.
This information is information that Björn Borg AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 3 pm CET on April 22, 2020.
For further information, please contact
Henrik Bunge, CEO
Tel: +46 85 06 337 00
Heiner Olbrich, Chairman of the Board
Tel: +49 171 339 11 91
ABOUT BJÖRN BORG: The Group owns the Björn Borg trademark and its core business is underwear, sportswear and bags. It also offers footwear and eyewear through licensees. Björn Borg products are sold in around twenty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has operations at every level from branding to consumer sales in its own Björn Borg stores. Total sales of Björn Borg products in 2019 for about SEK 1,6 billion, excluding VAT, at consumer level. Group net sales amounted to SEK around 757 MSEK in 2019, with an average of 213 employees. The Björn Borg share has been listed on Nasdaq Stockholm since 2007.