Denmark's Bang & Olufsen Q4 revenue hit by weak Beosound sales; cuts costs further

Bang & Olufsen A/S

02/07/2026 07:14

Overview
Denmark luxury audio maker's Q4 revenue fell 3.8% yr/yr due to weak Beosound Premiere sales and macroeconomic headwinds
Q4 gross margin rose to 58.7%, a record high for the company
Company simplifies organisation and implements efficiency measures, reducing its cost base

Outlook
B&O sees 2026/27 revenue growth in local currencies between 1% and 5%
Company expects 2026/27 EBIT margin before special items of 1% to 3%
B&O forecasts 2026/27 free cash flow of DKK 25m to DKK 100m

Result Drivers
WEAK BEOSOUND PREMIERE SALES - Co said significantly lower-than-expected sales of Beosound Premiere soundbar weighed on revenue
RECORD GROSS MARGIN - Gross margin rose to a record 58.7% in Q4, which co attributed to improvements in retail network, operating model and efficiency measures
WIN CITY GROWTH - Win City concept reported 20% yr/yr sell-out growth in Q4, helping offset some revenue pressure

Company press release: ID:nGNE7FkHyv

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
DKK 654 mln
DKK 684 mln (1 Analyst)
Q4 Gross Margin
 
58.70%
 
Q4 Adjusted EBIT
 
DKK 37 mln
 
Q4 Adjusted EBIT Margin
 
5.70%
 
Q4 Free Cash Flow
 
DKK 5 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household electronics peer group is "buy"
Wall Street's median 12-month price target for Bang & Olufsen A/S is DKK10.00, about 8.5% above its July 1 closing price of DKK9.22
The stock recently traded at 231 times the next 12-month earnings vs. a P/E of 148 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)