Luxury TV, stereo maker Bang & Olufsen suffers Q4 operating loss

Author: 
Reuters
ID: 
1562830146350456100
Thu, 2019-07-11 06:55

COPENHAGEN: Struggling luxury TV and stereo maker Bang &
Olufsen (B&O) on Thursday swung to a fourth-quarter operating
loss, but said it expected to return to sales growth this year with
a plan to open more sales points and launch new products.
Shares in the Danish company have fallen more than 70 percent over
the past year, reflecting weak TV sales and slow progress in its
turnaround plan at a time when subdued consumer spending has hit
retailers across Europe.
“Our unsatisfactory results were primarily due to difficulties
related to the transition of our sales and distribution network and
fewer product launches compared to last year,” said Chief
Executive Henrik Clausen in a statement.

The company says the loss is in part due to a smaller amount of
product launches this year compared to the last.
(File/Shutterstock)

The company reported a fourth-quarter operating loss of $9.97
million, compared with a profit of $8.03 million in the same period
a year earlier.
Full-year earnings before interest and tax (EBIT) fell roughly 50
percent to $8.91 million.
Sales for the financial year ending in May dropped 13.6 percent to
$422.70 million, in line with the company’s revised expectations.
It had initially forecast 10 percent growth.
B&O now expects single-digit sales growth in the 2019-2020 year
and an EBIT margin above the 2.1 percent achieved in 2018-19.

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Luxury TV, stereo maker Bang & Olufsen suffers Q4 operating loss