PRESSRELEASE
Stockholm August 20, 2010
SALES IN LINE WITH ORDER VALUE –STORE OPENINGS AND MOVE TO NEW MARKETPLACE AFFECT THE QUARTER’S RESULTJanuary 1 – June 30, 2010
· Net sales increased by 7 percent to SEK 161.6 million (151.1)
· The gross profit margin increased to 56.8 percent (53.4)
· Operating profit amounted to SEK 19.4 million (24.8), corresponding to an operating margin of 12.0 percent (16.4). Excluding expenses of slightly over SEK 4 million for the listing change, operating profit was SEK 23.6 million, corresponding to an operating margin of 14.6 percent
· Net profit was SEK 12.4 million (18.1)
· Earnings per share amounted to SEK 2.16 (3.14) (based on average number of shares)
April 1 – June 30, 2010
· Net sales decreased by 22 percent to SEK 11.1 million (14.4)
· The gross profit margin was 72.7 percent (51.6). Adjusted for one-time items affecting comparability, the gross margin was in line with the previous quarter
· The operating loss for the period was SEK 12.5 million (year-earlier loss of SEK 8.6 million), including expensesof about SEK 2 million during the quarter for the listing change
· The net loss for the period was SEK 10.3 million (year-earlier loss of SEK 6.9 million)
· Earnings per share amounted to SEK -1.79 (-1.20)
· In April Odd Molly reported an order value for the fall/winter 2010 collections of SEK 175 million, an increase of 11 percent compared with the previous year
Events during and after the conclusion of the period
· The company was listed on NASDAQ OMX Stockholm on June 21, 2010
· A new concept store was opened in Copenhagen and an outlet was opened in Kungsbacka during the second quarter
· Fashion show of the second collection of post fire dew, the company’s men’s collection, at Berns in Stockholm in August
· Odd Molly’s spring/summer 2011 collection will be shown at New York Fashion Week in September
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Comment from the CEO
As in previous years, the second quarter is Odd Molly’s weakest. Consequently, this year’s second quarter also produced a negative result, due to the low sales, which from our standpoint is a sign of something positive. It means that we sent out the majority of our spring and summer merchandise in the first quarter. The earlier we get our clothing into stores, the greater the likelihood of a high sales volume.
Active spring
During the quarter Odd Molly opened a concept store in central Copenhagen. Additionally, the organization has worked on the change in the stock listing, which was completed in late June. Both of these events are important to the further development of the brand and our operations. We have also opened an outlet in Kungsbacka.
As previously announced, Odd Molly opened a concept store in Los Angeles during the first quarter of the year and at the same time collaboration with a new agent in the United States began. One of the consequences in the short term, of course, is that it has generated one-time expenses that have been charged against earnings. Excluding the results of the US subsidiary and expenses associated with the listing change for the Odd Molly stock, profit before tax for the first half-year 2010 was slightly over SEK 10 million higher than the reported result of SEK 19.6 million, corresponding to an increase of 21 percent year-on-year. We are pleased with this – but at the same time we know that it is important that the US market, after the considerable investments that have been done, shows a more positively development in the seasons ahead.
Evaluation and development
During the fall we will focus on consolidating the initiatives we have taken during the year. We will develop and strengthen the concept in the stores we recently opened in important fashion cities. We are also continuing the initiated launch of our menswear collection, post fire dew, including through a fashion show at Berns in Stockholm this week.
The overarching aim is to increase our presence and sales in existing markets. Right now we are reviewing our sales organization to create even better support for our retailers and international partners.
Our fall merchandise was recently delivered to retailers, and right now we are selling our upcoming spring and summer collections to buyers during an intensive period of international fashion shows. A pleasant milestone we are very proud of is that Odd Molly will be shown for the first time at New York Fashion Week in September.
In Odd Molly, we are impatient and want to see results, and are working conscientiously to further develop our collections, distribution channels and sales strategies.
Christina Tillman, President and CEO
Please see the full report in the attached pdf-fileFor further information, please contact:
Christina Tillman, CEO of Odd Molly, phone: +46-8-522 28 502 or mobile: +46-733-10 60 00
About Odd Molly
Odd Molly is a Swedish company that designs, markets and sells fashion. Odd Molly products are sold through 1,450 external retailers in around 40 countries around the world. In addition, Odd Molly currently has four of its own stores in Stockholm, Kungsbacka, Los Angeles and Copenhagen. Odd Molly has 50 employees. The company’s profitable growth is the result of creative design, consistent branding and a business model that facilitates expansion with limited capital requirements and minimal inventory risk. Odd Molly’s share is traded as of June 21, 2010 on NASDAQ OMX Stockholm.
Scheduled information dates
• Order values for the first half-year 2011 (spring/summer collections) will be released on October 8, 2010.
• The interim report for third quarter, July-September 2010, will be released on October 21, 2010.
Odd Molly International AB (publ) has issued the information in this press release at 8.00 a.m. CET on August 20, 2010 in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
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Odd Molly International AB, Kornhamnstorg 6, SE-111 27 Stockholm, Sweden, Phone: +46 8 522 28 500, www.oddmolly.com
Press photos can be downloaded from Odd Molly’s website at www.oddmolly.com under “press/media.” Odd Molly also produces its own newsletter, which reports on news from day-to-day operations. To subscribe, go to www.oddmolly.com and click “sign up for our newsletter.”