Bang & Olufsen reports fourth quarterly loss in a row (updated)

Bang & Olufsen A/S

02/04/2020 09:07

(Adds details, background, CEO quote)
    COPENHAGEN, April 2 (Reuters) - Struggling Danish TV and
stereo maker Bang & Olufsen  BO.CO  reported an operating loss
for the fourth quarter in a row on Thursday and said it expected
sales to be hit by the fallout from the coronavirus outbreak.
    The company said sales fell 14% to 630 million crowns in the
three months through February from 710 million a year earlier,
leading to a loss in earnings before tax and interest (EBIT) of
1 million Danish crowns ($146,526). 
    Bang & Olufsen, which has given five profit warnings in just
over a year, said its third-quarter results were in line with
its expectations.
    "We do, however, see COVID-19 impacting most of our major
markets in the coming quarter. Countries are impacted
differently and the sales situation is still very uncertain,"
Chief Executive Kristian Tear said in a statement.
    B&O, whose exclusive speakers can cast up to $80,000, has
struggled to make progress on plans to shift from wholesale
distribution to a more retail-focused model while keeping its
edge as a luxury brand.
    In a strategy update on Thursday, B&O said it would boost
its online presence and digital sales to make up for store
closures due to the pandemic and confirmed a cost cutting 
programme announced in March to save 175 million crowns a year. 
    Shares in B&O, which have fallen about 62% over the past
year, were up 0.6% at 0800 GMT.
   ($1 = 6.8247 Danish crowns)

 (Reporting by Andreas Mortensen; editing by Jason Neely)
 ((andreas.mortensen@thomsonreuters.com; +45 33 96 96 75;))