Sales decline, guidance revision hit Bang & Olufsen shares

Bang & Olufsen A/S

10/01/2024 08:50

** Shares in Bang & Olufsen  BO.CO  slump 8% in heavy
volumes after the Danish high-end audio and video equipment
maker posted in its Q2 print a revenue decline and made a
downward revision to its guidance
    ** The group now sees revenue growth for the full year to
land in the lower end of 0% to 9% guidance range
    ** Nordnet analyst Per Hansen notes challenging market
conditions ahead of Bang & Olufsen, and says that although the
growth guidance revision might not be a useful indication, he
wonders whether investors should already prepare for EBIT margin
landing at the lower end of the 0-6% range
    ** He adds that the second quarter revenue drop to 700
million Danish crowns ($102.60 million) was partly driven by the
company's decision to focus its distribution away from the
multi-brand
    ** Among challenges, Hansen lists potential logistics costs,
especially around the Red Sea
    ** B&O shares are on track for their worst day since March
2023
    ** About 1.4 million shares of the company have traded so at
8:45 GMT, about 1,057.4% of their 30-day moving average full-day
volume


($1 = 6.8225 Danish crowns)

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))