Bang & Olufsen: shares plunge after another profit warning
(CercleFinance.com) - Bang & Olufsen issued another profit warning on Tuesday, blaming lower-than-expected sales in Europe, which has sent its shares plunging over 18%.
The Danish company, best known for its design televisions, said revenue for the financial year 2018/19 ended on 31 May was now likely to be 13%-14% lower than the last financial year, below its previous forecast of a fall of around 10%.
The luxury lifestyle brand also said it now expects its EBIT margin in the range of 2%-3%, against approximately 4%-5% previously.
The group said it expects to return to profitable growth in the financial year 2019/20, although this outlook has obviously failed to reassure investors.
At 11 am B&O shares - which have lost over 62% of their value over the past year - were down 18% at 42.4 Danish crowns.
Copyright (c) 2019 CercleFinance.com. All rights reserved.