BJORN BORG EXPANDING INTO U.S., U.K. AND GERMANY; TO COMPETE WITH LULU, NKE, ADDYY AND UAA
Bjorn Borg AB (STO: BORG) will be expanding into the U.S., U.K., and Germany, as the company looks to become a global brand. Once known for their brightly colored underwear, BORG has spent the last 3 years transforming itself into a sportswear brand that intends to compete with the likes of Lululemon (LULU), Nike (NKE), Adidas (ADDYY) and Under Armour (UAA). The company has yet to decide if it will open brick and mortar stores, find a wholesale partner or sell its product through department stores as it prepares to increase its presence in London and Berlin.
Howie Long-Short: BORG already has some of its product in London stores and hasn’t gained any significant traction. The U.K. and Germany combined are generating less than 10% of company sales. To expect them to drive growth in 2019 is wishful thinking. CEO Henrik Bunge insists that Bjorn Borg’s fame/name will enable him to compete within the U.S. market. I’m telling you that they can’t compete and shouldn’t try.
Fan Marino: Not a tennis fan? Between 1974 and 1981 Bjorn Borg won 6 French Open Titles and 5 Wimbledon Championships. In 1979 he became the first player to win $1 million in prize money in a single season. He's among the all-time greats.