Luxury TV and stereo maker B&O sees return to growth after near 30% slide in sales (updated)

Bang & Olufsen A/S

07/07/2020 10:06

(Adds quote, background, shares)
    COPENHAGEN, July 7 (Reuters) - Struggling Danish TV and
stereomaker Bang & Olufsen  BO.CO  reported a slide in full-year
sales to their lowest in at least 27 years on Tuesday, but
predicted a return to growth next year through new product
launches and stronger marketing. 
    Known for its modern Danish design and leading sound
technology, Bang & Olufsen has seen sales of its luxury
televisions and exclusive speakers with a price tag of up to
$80,000 decline for nearly a decade. 
    The company raised 409 million Danish crowns ($61.9 million)
via a rights issue earlier this month to help it survive the
coronavirus crisis, which temporarily closed most of its shops. 
    B&O posted a 29% drop in revenue to 2.036 billion Danish
crowns for the financial year ending May 31, the lowest in at
least 27 years, according to Refinitiv data.
    It made a loss before tax and interest of 347 million
crowns, compared to a profit of 59 million crowns in the
previous year.
    "This has been a disappointing year for Bang & Olufsen,"
said Chief Executive Kristian Teär in a statement.
    In April, the company announced a new strategy that would
boost its online presence and digital sales, focus on six core
European markets, and accelerate growth among luxury consumers
in China and South Korea. 
    Teär said he expects to return to growth next year, driven
by product launches and stronger marketing. 
    Shares in the company, which are down 87% since a peak in
early 2018, were trading 4.8% lower at 0806 GMT.
    The company's chairman acknowledged in August last year that
"the warning bells" were starting to ring and that the board
would listen if approached by a buyer.  urn:newsml:reuters.com:*:nL5N25J1BT
    "The investors need to look forward. The next six months
will be crucial to see if B&O can continue as an independent
company," Nordnet analyst Per Hansen said.
    
($1 = 6.5937 Danish crowns)

 (Reporting by Andreas Mortensen; Editing by Jacob
Gronholt-Pedersen and Jan Harvey)
 ((andreas.mortensen@thomsonreuters.com; +45 33 96 96 75;))