Bang & Olufsen: shares spike despite 'disappointing' quarter
(CercleFinance.com) - Danish high-end stereo and TV maker Bang & Olufsen said it had a "disappointing" second quarter as revenue fell by 31% compared to last year, a drop that was larger than expected.
The struggling consumer electronics company said results were impacted by the ongoing transition towards a retail-based model and the relatively low number of product launches in the previous quarters.
For the past quarter, the firm posted a loss before tax (EBT) of 76 million Danish kronor, a far cry from a profit of 85 million Danish kronor in the same period last year.
"It is evident that we have to make changes to our sales and marketing setup and move closer to customers and partners," commented CEO Kristian Tear.
B&O said it will present a three-year strategy plan in April, outlining how it plans to improve its long-term financial performance.
The group maintained its 2019/2020 outlook for revenues to fall by 13%-18%.
The stock reacted positively, gaining 4.4% at 36.5 Danish kronor on the Nasdaq Nordic market on Tuesday morning. Yet, the share price has crumbled 65% over the past year, underperforming a 23% rise in Copenhagen's OMX index.
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