Stockholm, August 20, 2009
Interim report January 1– June 30, 2009
FURTHER INCREASE IN SALES DURING FIRST HALF-YEAR 2009
January 1 – June 30, 2009
• Net sales increased by 18 percent to SEK 151.0 million (127.8)
• The gross profit margin decreased to 53.4 percent (58.5)
• Operating profit amounted to SEK 24.8 million (33.0), corresponding to an operating margin of 16.4 percent (25.9)
• Net profit amounted to SEK 18.1 million (23.8)
• Earnings per share amounted to SEK 3.14 (4.14) (based on the average number of shares)
April 1 – June 30, 2009
• Net sales decreased by 34 percent to SEK 14.4 million (21.8)
• The gross profit margin was 51.6 percent (58.7)
• The operating loss was SEK -8.5 million (0.1)
• The net loss amounted to SEK -6.8 million (0.6)
• The loss per share was SEK -1.19 (0.10)
• In April Odd Molly reported an order value for the fall/winter 2009 collections of SEK 158 million, up 23 percent from the previous year
Events after the conclusion of the period
• A menswear collection is scheduled for launch in fall/winter 2010
• Cooperation with Fair Wear Foundation
• Runway show at Grand Hôtel in Stockholm in August
• Bed linen collection with Helena Christensen to benefit Chernobyl Children’s Project
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Comment from the CEO
As we stated in the last report, practically our entire spring and summer collections were delivered and invoiced in the first quarter. As a result, the second quarter produced very modest sales, which naturally also affected earnings. Aside from the big discrepancy between quarters, this shows that the dedicated efforts to improve our logistics have worked and that our customers are receiving Odd Molly merchandise early in the season. Our goal is to continue to deliver merchandise quickly each season, which will make us stronger competitively and improve relationships with customers.
In general – and for the period as a whole – we are very pleased with our performance. We have invested heavily to strengthen the organization for further growth. And keep in mind that last year we benefited from the positive effect of exchange rates and lower costs.
For the first half-year we reported an estimated order value of SEK 138 million. Actual sales ended up at SEK 151 million. The positive difference is partly due to the stronger currencies we invoice in. The gross profit margin is lower than last year, but this is mainly due to negative exchange rate effects.
As I have mentioned before, our strategy is to remain on the offensive on several fronts. We have introduced new product groups (eyewear and skin care) and recently decided to launch a menswear collection for fall 2010. We believe there is strong demand for personal, high-quality men’s clothing, and recently we recruited Golden Button-winner Ylva Liljefors as head designer for our collection. Over time we have strengthened Odd Molly’s organization and are spending considerably more on marketing to build the brand and drive sales. The cooperation with supermodel Helena Christensen has continued in the form of a major international advertising campaign, a runway show in Stockholm and a charitable collaboration to benefit the children of Chernobyl.
At the time of writing, presales for the spring and summer 2010 collections are under way. We are also showing our new collection of eyewear, which will reach consumers for the first time next year. I am getting reports that retail sales are good, including in our own store, which is especially gratifying in these tough economic times. We know that Odd Molly has a loyal target audience that keeps coming back.
The runway show in Stockholm in August launched a fantastic collection which, when combined with the positive sales reports from retailers, makes us enthusiastic about Odd Molly’s future development.
Christina Tillman, President and CEO
For further information, please contact:
Christina Tillman, CEO of Odd Molly, phone: +46-8-522 28 502 or mobile: +46-733-10 60 00
Please see attached pdf document for the full length interim report.