Good morning and welcome to our Q1 2026 report. It's a beautiful Wednesday morning and that's not the only thing that is beautiful this morning, it's also our first quarter.

Of course it's always, good to read your own quotes, but to summarize the quarter, our sports apparel growth continues. Now we've been growing double-digit for 15 consecutive quarters.

This is also our 21 quarter with sales growth, of course we look back at a very, very strong journey. Never before have we started a year stronger with both record sales and a very, very strong operating margin, increasing 37% versus last year.

All in all, absolutely fantastic. Net sales, as I say, 301 million, so that's a record quarter, super good, plus 7%.

The quarter-- currency neutral, it's just above 10%. Gross margin is at 54%, good increase versus last year, and operating profit consequently is also increasing then with 37% versus last year, hitting 47 million.

Overall, a super strong start of the year. Given of course that the world around us has been fueled with uncertainties, we're super, super proud, of course.

Clearly, this is the effort of a very, very strong team that don't actually work quarter-by-quarter, but rather have a long-term perspective. Again, just to remind us all, this journey was never about making a quarter versus the quarter before.

It was about transforming the brand into becoming something bigger, moving into a bigger house, a bigger arena. The idea of course was to build a sports brand from this old, very beautiful underwear brand.

Our mission, and that's the one that we would want then the consumer to tap into, is about inspiring people that you can be more, that you should train not to win Olympic gold medals, even if that's okay, too, but it's far more important than that. You should train to live longer, be happier, be a better father, laugh more.

That's really the core of our message. Looking at the financial KPIs, we've said we want to grow double-digit 10% currency neutral.

We started the year doing that, but of course the world is not currency neutral, we were a bit shy with just above 7% growth. Looking at our operating margin, of course, well above our target.

What the dividend, let's see, we have proposed 3 SEK, but of course that will be determined in our AGM in about two or three weeks, but a very strong history of a high dividend over the years, a good direct yield, of course, for the company. Looking at equity asset ratio is also, very, very healthy, and of course, one highlight is that net debt is lower this year versus last year, which of course is also very, very good.

Our strategy has been really, really grow online, both own e-com, but also of course our e-tailers and marketplaces, focusing on the wholesale business in terms of own channels, really, really pushing D2C with own e-com in the forefront. In terms of category, of course the most important one is sports apparel, and again to repeat myself, this is now the 15th quarter in a row with double-digit growth, super, super strong.

The next of course growth engine will be footwear, however that is not developing the way we want, we're actually declining in the quarter with 20%. However, there's a few highlights even in the footwear category, Sweden is actually up 14%, own e-com is up 10%, Denmark is up 60% on low numbers, we see that the footwear collection has been perceived as really, really well in some markets.

Then we need to do some structural changes in some other markets where we actually have reinforced the team in both Holland and Belgium, and hopefully then that will also fuel then footwear growth, which is one of the identified growth initiatives going forward. Our focus in terms of geography is still the same: we want to continue to grow where we already are.

What we've said is that we want to open up one new market and that's Germany, nothing new, but of course massive growth numbers from the German market in the first quarter gives us a lot of confidence that this is actually the right decision, even though we also see that the consumers in Germany are a bit hesitant, even more so than actually the the Nordic ones. Again, with small market shares you can grow in a growing market, but also in a declining market, and that is of course our approach.

Looking at the brand, our most important asset together with the team, and the two things that makes us completely unique, it's growing in most of our markets and in most of our KPIs. A couple of highlights: so brand strength for him in Germany is up 500%.

Yes, low numbers, but again of course we're slowly building the brand in Germany. Looking at consideration him, that's growing, who'd consider buying from this brand, a very, very strong brand KPI.

Then looking at Holland, consideration him again also growing versus last year with 24%. Super strong traction for the brand and very, very important of course to continue to fuel this growth journey that we are on.

Here listing of course all of the brands around us, it's a very, competitive landscape, and we of course are dominated by two giants in terms of Nike and Adidas. When we ask consumers across all our markets, we see that we are, one of the few brands that actually are increasing consideration where actually most others are declining versus last year.

Of course that's reassuring and showcasing then that the communication we do, the products that we put into the market and the whole team is really slowly then building this brand into something bigger and stronger than what it was yesterday. That is, exceptionally good.

With that of course, we will dig a bit into numbers, and of course, no one is better doing that than my CFO, Jens. He will continue to talk about records, and again, the highlight if you missed that: 300 million, we've never sold more.

Congratulations, Jens, to a job well done.

Thanks a lot, Henrik, and that warms my heart. Good morning from me as well.

It's a beautiful day. Someone once told me that the day will only become as good as you let it.

I think that's quite wise. That was you, Henrik.

I think that's a wise saying, I'm going to live for that. Anyway, the sales for the quarter, they started really, really well this year.

Over 300 million, as you can see from this slide, never have we sold more any quarter in the company history. That's 7% up, as Henrik already said.

Currency neutral, that's above 10% growth. If we look at the different categories, underwear had a really, really strong quarter, plus 15%, which is extremely good.

Many of the wholesale markets have delivered a first quarter in underwear category super strong. Apparel continues to grow double-digit, 12% in Q1, socks 30%.

Other categories, as you heard, footwear, for instance, is declining and so is bags, there we still have some work to do. Looking at the geographies and the markets in our own subsidiaries, most of the markets are growing, however the Benelux markets are declining mainly related to the footwear category, as I just mentioned.

The biggest market, Sweden, is up 3%, Finland super strong, 27% up, Denmark low numbers, but close to 70% growth. The distributors as a whole is growing as well, however it differs widely between the different markets.

The biggest one, for instance, Norway, is declining, while the joint of the smaller ones is increasing rapidly with 160% up. If we look at the channels, wholesale, as I mentioned before, super strong double-digit growth, 11%, and here we see mainly the e-tailers or the online players within the wholesale segment are growing quite fast, with 20% up, but also the physical stores or the brick-and-mortar are growing 7% in the quarter.

Own e-com is still growing, however a bit slower than what we have seen before, but still on a good track. Own retail declining heavily with 29%, however that's not comparable, we're closing down stores.

That's why the numbers looks like quite a big decline. However, comparable stores, meaning the stores that would open the same quarter last year, they are also declining with 8%.

Something needs to be done here as well. Distributors, as I said, up 9% as a whole, where the smaller ones actually, Austria, Slovenia, for instance, are growing really quickly at the moment.

Gross margin up four points, up to 54, super strong quarter, and also as you heard before, the operating margin or the EBIT is up 37% in the quarter to 47 million. Extremely strong, never have we had a stronger EBIT in any Q1 in the history of this company.

Super glad to see that, obviously. If we summarize this to a simplified P&L, sales, as I said, 7% up, over 300 million; margin 54%, four points up versus last year.

The operating expenses are increasing as planned with 220 222 million, 8% up, and that brings us to an EBIT of then 47 million. The margin is also increasing with 3.4 points to 15.3.

Before I hand over to Henrik again to close this up, a few highlights from the balance sheet as well. The solidity of the company is also increasing, being stronger, 53.5 points percent, 1.5 points up versus last year.

As you heard before, net debt is decreasing, so that's very positive to see, we're declining that one with 15 million, and the working capital is fairly stable. We've said before we want to track around 20% and that's more or less where we are.

Good numbers in the balance sheet as well. I'm super pleased with the quarter.

Wishing you all a fantastic week, and with that, Henrik, I hand over to you again. Yes.

Brilliant, brilliant. Thank you, Jens.

To wrap it up then, three I think major key takeaways. The first one is Germany: so not only are we growing strongly in the German market, also we see that the brand is getting stronger and stronger on fairly low levels, but still the strategy of really focusing on Hamburg and building it from one street to two streets, to one city to two cities, is really, really working for us.

The second one, of course, we have a very, very strong wholesale development, growing in the quarter, especially of course driven by Finland, Germany, Denmark, and Sweden. Here within that, we see good momentum within e-tailers, and we see that the distributors are recovering as well, but again of course small numbers in the quarter.

Looking at the categories, both underwear and sports is really, really growing versus last year. Of course, again as we've said now numerous times, if you want to keep track on whether what we're doing is working, look at the sports apparel development, and now again 15th quarter in a row with double-digit sports apparel growth, of course we're super proud over that.

To sum it up, a very strong start of 2026. Again, we're here for the long run, I'm sure there will be strong quarters and perhaps there will be weaker quarters, who knows, but overall of course our ambition is to constantly improve and become better every day.

I think we've now proven that for a number of quarters in a row, which is of course thanks to a great team focusing on this idea that you can indeed move a strong underwear brand into a bigger arena and build then a global sports fashion brand. As we've said a couple of times, even though we've been here for a long time now, this is merely the beginning.

I think we're up for something really, really big here if we do things right. I think with that said, thanks you for listening in.

Let's see if Hjalmar has any questions. He usually has some stuff that he wants to ask us, let's fire away.

Yes, thank you so much, Henrik. I think we should start at the strong point of course in the sports apparel.

Could you break this growth down a bit maybe in terms of markets? Do you feel that you're gaining market share, and maybe elaborate a bit on the underlying drivers of the strong sports apparel growth that we saw here in Q1?

No, I think we absolutely see that we're taking market shares and we've been doing so for well, 14 or 15, perhaps even 16 quarters. The underlying growth is not even close to our growth numbers.

It's spread into two parts: of course, on one hand we do performance products that you can use when you're actually working out, and of course at the same time we're doing sports apparel that you can use on your way to the gym or when you're leaving the gym. Of course the intersection between those two is really blurry, of course you know that consumers are wearing tights when they go out for dinner and sometimes they're wearing a cotton t-shirt when they go out for a run.

I think we want to be in that middle where we call sort of train for life, really mixing those products. Both is really, really growing.

We see a very, very strong growth in women's, and of course we believe that's going to be crucial to continue to fuel growth going forward, given that in the past of course men has been really the big part of our sports apparel volume. Now at e-com, for example, the women's is bigger than what men has in certain months, and overall of course it's a fairly even share now women and men, which I think is also a sign of strength.

Yep. Thank you.

Then if we look at the channels, we have seen previously that you've been able to grow of course in a tough and challenging environment. We know that many other consumer-facing companies are facing a challenging environment right now, and despite this the wholesale is showing impressive growth here.

Is this reflecting maybe an optimistic view on the among the wholesale customers or is it that you have success with the new product segment launches, for example? Could you elaborate a bit on this?

I think there's many different components. Of course, it's clear when we sort of open up the office doors and look out at the reality, we see that consumer sentiments is a bit hesitant, consumer confidence is decreasing.

I think I read yesterday in Sweden it was 95% where index is 100, in Germany it's even lower. Of course last two months, people are a bit more concerned than what we saw in the beginning of the year.

It seems to me that that's almost like a new reality. I can't now even recall when we had a quarter when things were sort of normal.

I think that's just something you need to learn to navigate within. I think our strength has always been that we have been operating various different channels very successfully.

Sometimes e-com is doing really, really well, other quarters, wholesale is doing really, really well, sometimes within wholesale e-tailers are doing well and other quarters brick-and-mortar is doing well. I think we simply need to be able to operate wherever the consumers decides to be.

Again, if you look at our categories, we know from the past that underwear has really no impact on how the economy is going. It's a very stable category.

You never really need a pair of underwear, but also you can always buy a pair of underwear. Of course here we are market leader and still top of mind, of course that is helping us when consumers are perhaps a bit more hesitant to purchase more expensive stuff.

Then when it comes to sports apparel and bags and footwear, we're still very small. Even if we would grow 10, 15, 20, 25%, we still only have a fraction of the overall market.

Of course that means that we can still grow even though the market is declining. Even though of course it's easier to grow when everything is growing.

I think the quick answer is I think we managed to navigate because we operate different channels, we have product groups within those channels that is sort of helping each other out when the world is a bit challenging.

Thank you. Then if we look at other product areas, we look at the shoes, for example, or maybe the bags here, what are the challenges or your focus areas now during 2026?

Do you feel that you have a product offering that you're satisfied with? Is it a matter of addressing the customers from here on?

What are the challenges maybe that you will address or what will your focus be in 2026 considering these product areas?

Of course we took over now footwear roughly two years ago, and of course we knew that integrating something is always trickier than what you would want it to be, and it's going to take a bit of time to rebuild and do something that will also be maintained over the years. The first thing you do of course is to make sure that you create a strong collection.

Of course it takes a bit of time, the lead times in wholesale is roughly between 20 and 21 months from you say, "Hey, this is a great product" until you have it on the shop floor. It takes a bit of time if you want to do wholesale.

That of course means that to change something takes time, so that's why you of course need to start working with the product. When we look at the collection that is out in the market right now, I believe it's very, very strong.

Also we see a few evidence that also the end consumer is really picking that up. Again Sweden is growing footwear with 14%, own e-com is growing 10%, of course we see that there are pockets of footwear growth.

However, of course Holland and Belgium is drastically declining in footwear, actually also now versus fairly low numbers last year. Of course here we need to rebuild, of course it's a new team in place, we need to slowly rebuild confidence amongst the distribution landscape on footwear in those two markets.

When we do that, of course then the entire category start growing again. Again, it's going to take time.

The longer it takes to rebuild something, the longer it takes to break it down again. We're not in a rush, but of course we want footwear to start growing versus last year's numbers, but that clearly takes a bit of time for us.

Thank you. Then looking at the strong gross margin, we know the channel mix is important here, but then again maybe we saw some growth from more dilutive areas actually in the first quarter here, but could you elaborate a bit on other items, maybe pricing and maybe the product mix or currency?

How did these items impact the gross margin that we saw here in the first quarter?

Of course it's many, many different aspects of course that together then will give us a strong gross margin. One of the biggest impacts is of course which category that is growing.

Underwear being strong is good because we have high gross margins. Footwear declining is actually something good because it's slightly lower gross margins.

Looking at the channel, D2C, e-com has a strong gross margin, of course when e-com has a bigger share, they'll lift up the gross margin. It is number of different components.

Again of course also looking at Q1, it's very clear that one big part of the currency increase is currency related. Of course we've been working against the currency almost every season since 2014, but now since roughly a year back the Swedish krona has really strengthened a bit, up and down, but over the months continued to strengthen predominantly versus the US dollar, and of course we are buying in US dollar and in euro, but we don't sell anything at all in US dollar.

Of course that has an impact on our gross margin. That is really the impact: so currencies, channel mix, and product mix, those are sort of the three big components.

Then of course our ability to increase prices and negotiate what we buy products for, but that's something ongoing, but those three is really the stuff that is making the quarters look a bit different.

All right. Thank you.

That's clear. Then lastly then on the own online, now you're back to single-digit growth in the own online, and we've seen this previously, but then it's only been historical lump and then you return to double-digit following this.

Do you feel confident if you look forward that you can come back to double-digit in the own online, and what are the challenges that you see in this channel?

I try a bit to avoid then giving too much of forecasting, I don't want to say what we will then do in the future, but very clearly of course our ambition is to grow more than 2%. Actually if you look at article sales in Q1, we were actually growing probably 4-5%, it depends a bit of course how you close the quarter, how much returns you do, so that's a bit of a trick.

We're growing a bit more than two, but with that said, the growth is not where we want it to be. Yes, of course we've been elaborating a bit with actually decreasing discounts, more full price business.

Of course we know when the world is a bit worried, the consumer gets even more price focused, you want to make a good deal, and of course that has impacted us a lot when it comes to driving growth. We see that the gross margin is actually better than last year, but we also see that marketing investments is higher than last year.

Actually, even though we're growing top line, profitability actually is slightly lower than the year before. It's clear that also driving e-com is changing.

We now have AI, there's a lot of stuff happening around us, what you need to do to be successful driving D2C tomorrow is going to be completely different from what was required only a year ago. We have a strong team in place, very AI-savvy, I'm confident that we can grow above and beyond what we saw in this past quarter.

All right. Thank you so much, Henrik and Jens, and congratulations on a strong quarter.

I'll leave it to you for any concluding remarks.

Thank you. Thank you, Hjalmar.

Again, of course, it goes up and down. We're of course super happy with a strong start of the year.

I think our key message, one that we want to say is what is on the screen right now: train to live is really what we want to talk about. Whatever you do today, make sure you get your workout done, and it could be walking up the stairs or taking a run, doesn't really matter, but that's going to be the best gift you can give you.

If you want to top that up, well do that then in a pair of Björn Borg products and that's going to make your day fantastic. I think with that said, looking forward to seeing you guys soon again.

Have a great Wednesday. Thank you, Hjalmar, and thank you for being in this beautiful office here as well.

Thank you.