Bang & Olufsen: fourth-quarter loss deepens, shares drop
(CercleFinance.com) - Danish upmarket stereo and TV maker Bang & Olufsen has reported a higher fourth-quarter operating loss on Tuesday, on the back of a slump in sales, sending sent its its shares down around 5% on the Copenhagen Stock Exchange.
The Danish company posted negative EBIT of 140 million Danish kronor over the past quarter, against a loss of 66 million Danish kronor in the same period last year.
B&O's revenue dropped by 39% to 377 million Danish kronor, from 618 million Danish kronor in the same quarter last year, as the Covid-19 outbreak resulted in temporary store closures at all of its markets.
Meanwhile, its gross margin reached 39.4%, down from 48.5% a year ago, hit by higher discounts on certain products, higher sales through the company's e-commerce platform and sales of end-of-life products.
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