TV and stereo maker Bang & Olufsen cuts outlook on virus impact, shares down (updated)

Bang & Olufsen A/S

13/03/2020 10:29

(Adds details, CEO comment, share reaction)
    COPENHAGEN, March 13 (Reuters) - Bang & Olufsen  BO.CO  on
Friday cut its sales and profit margin outlook due to the
anticipated impact of the coronavirus, the struggling Danish
luxury TV and stereo maker said, sending its shares down more
than 6%.  
    B&O, which in December issued a fourth profit warning in a
year, now expects its 2019/20 revenue to fall 20-29% versus a
previous range of 13-18%.  
    It also forecast its full-year operating margin would shrink
by 10-15% versus a previous forecast of 4-9%. 
    "We expect that COVID-19 and the uncertainty related to the
current market situation will affect consumer behavior and
demand in all major markets," Chief Executive Kristian Tear said
in a statement. 
    The Danish company, whose new range of televisions can sell
for up to 138,500 Danish crowns ($20,625), reported a
preliminary third-quarter revenue drop of 12% as in-store sales
in Asia were hurt by coronavirus, it said.
    Bang & Olufsen said product supply was only marginally
effected by the virus, but logistics costs had increased in the
quarter. 
     Shares in B&O traded down 6.1% at 1005 GMT, and have
dropped around 70% during the last year. 

 (Reporting by Andreas Mortensen; editing by Jason Neely)
 ((andreas.mortensen@thomsonreuters.com; +45 33 96 96 75;))