Revenue Miss: Björn Borg AB (publ) Fell 17% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Björn Borg AB (publ) (STO:BORG) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Björn Borg reported an earnings miss, with kr198m revenues falling 17% short of analyst models, and statutory earnings per share (EPS) of kr0.34 also coming in slightly below expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Björn Borg after the latest results.

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Taking into account the latest results, the consensus forecast from Björn Borg's two analysts is for revenues of kr1.06b in 2026. This reflects a reasonable 2.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr3.91, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.11b and earnings per share (EPS) of kr4.00 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Björn Borg

Despite the cuts to forecast earnings, there was no real change to the kr67.75 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Björn Borg's past performance and to peers in the same industry. We would highlight that Björn Borg's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2026 being well below the historical 7.5% p.a. growth over the last five years. Compare this to the 91 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it looks like Björn Borg is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at kr67.75, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Björn Borg going out as far as 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Björn Borg you should know about.

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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.