Bang & Olufsen shares soar as demand for home entertainment boosts sales

Bang & Olufsen A/S

16/12/2020 10:09

COPENHAGEN, Dec 16 (Reuters) - Shares in luxury TV and
stereo maker Bang & Olufsen  BO.CO  soared as much as 30% on
Wednesday after the Danish company said higher demand for home
entertainment products had lifted sales above expectations
during the pandemic.
    B&O, known for its TVs and speakers that can sell for up to
$90,000, said sales in the financial year that started on June 1
had risen 10% to 1.16 billion Danish crowns ($190 million).
    Better-than-expected sales were driven by "strong strategy
execution, seven successful product launches, and higher
consumer demand for home entertainment products," the company
said in a statement late on Tuesday.
    B&O had reported its lowest annual sales figures in 27 years
in July and had been struggling with declining demand long
before the coronavirus outbreak.  urn:newsml:reuters.com:*:nL8N2EE1SA
    The company has benefited from a revamped strategy to try to
boost its online presence and digital sales with a focus on key
European and Asian markets, along with consumers' spending
habits shifting towards home investments during the pandemic.
    B&O said launches of its new $7,000 Beovision Contour TV and
a $12,000 new edition of its classic Beogram record player
helped to lift sales.
    It also raised its full-year outlook for earnings before
interest and taxation (EBIT) before special items to between
negative 50 million crowns and plus 25 million, compared with
its previous guidance of 100 million crowns in the red.
($1 = 6.0980 Danish crowns)

 (Reporting by Tim Barsoe; Editing by Jacob Gronholt-Pedersen
and Keith Weir)
 ((Tim.Barsoe@thomsonreuters.com;))