Bang & Olufsen turns a profit from lockdown shopping (updated)

Bang & Olufsen A/S

12/01/2021 09:22

(Adds detail, CEO quotes, background)
    COPENHAGEN, Jan 12 (Reuters) - Denmark's Bang & Olufsen
 BO.CO  posted a profit for the first time in nearly two years
in its second quarter, as consumers spent more on home goods in
lockdown periods during the pandemic.
    The Danish manufacturer of luxury audio and visual goods has
struggled to increase sales and improve earnings for years, but
has seen its shares soar almost 60% since mid-December when the
company reported higher demand from lockdown-hit consumers.
    B&O said on Tuesday it generated a quarterly profit of 12
million Danish crowns ($1.96 million) in the September to
November period, compared to a loss of 60 million crowns a year
earlier. That is the first profit posted by the firm since
February 2019.
    "People are buying more products for the home," CEO Kristian
Tear told Reuters on Tuesday.
    Shares in the company, known for its TVs and speakers that
can sell for up to $90,000, traded up as much as 7.4% following
the release of the results.
    The audio visual equipment maker said sales had risen 10.5%
in the quarter.
   "We have found ways to get through to our consumers," Tear
said.
    B&O implemented a revamped strategy in April to boost its
online presence and cut costs - it said on Tuesday cost
reductions amounted to 63 million in the first half of its
financial year. 
    ($1 = 6.1162 Danish crowns)

 (Reporting by Tim Barsoe and Nikolaj Skydsgaard, editing by
Louise Heavens, Kirsten Donovan)
 ((Nikolaj.Skydsgaard@thomsonreuters.com;))