Bang & Olufsen shares drop after disappointing China sales (updated)

Bang & Olufsen A/S

17/03/2023 15:44

(Adds details)
       STOCKHOLM, March 17 (Reuters) - Shares in Bang & Olufsen
 BO.CO  plummeted 11% on Friday after the Danish audio and video
equipment maker reported a preliminary operating loss for the
third quarter and lowered its full-year profit outlook due to
disappointing sales in China.
    The company posted an operating loss before special items
for the third quarter of 43 million Danish crowns ($6.14
million) between December to February.
    The company also said it now expects EBIT margin before
special items for the full financial year ending May 31 in the
range of -4% to -1%. It had previusly guided it would end at the
lower end of -2% to 3% range.
    "Sales in China did not progress as expected after the
reopening because of all the challenges with COVID-19," Chief
Executive Kristian Teär said in a statement.
    "When the country suddenly abandoned most of the
restrictions in December, we did not expect this negative
development in consumer behaviour," he said.
    Sales in China declined by 65% in the third quarter, the
company said. 
    B&O said it expects better market conditions in China in the
fourth quarter, but still at a slower pace than initially
expected.
    Shares in B&O were trading 11% lower by 1513 GMT, headed for
their biggest daily decline since December 2019.

($1 = 7.0022 Danish crowns)

 (Reporting by Anna Ringstrom, Editing by Jacob
Gronholt-Pedersen)
 ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))