Odd Molly International AB (publ)
Stockholm, Sweden August 16, 2017
April 1 – June 30, 2017
- Total operating revenue increased by 1 percent to SEK 82.0 million (81.4).
- The gross profit margin increased to 57.6 percent (56.0).
- The operating loss amounted to SEK -7.5 million (-2.5).
- The net loss was SEK -6.6 million (-2.9).
- Earnings per share amounted to SEK -1.15 (-0.51).
January 1 – June 30, 2017
- Total operating revenue increased by 5 percent to SEK 208.1 million (199.1).
- The gross profit margin increased to 55.4 percent (54.9).
- Operating profit amounted to SEK 0.0 million (5.9).
- The net loss was SEK -1.9 million (3.0).
- Earnings per share before dilution amounted to SEK -0.34 (0.51).
- Earnings per share after dilution amounted to SEK -0.32 (0.51).
Comment from the CEO
An exciting journey – with big shifts happening quickly
Quarter
Odd Molly continued during the quarter to deliver strong growth in the retail segment, i.e., sales in Odd Molly’s own channels, which rose by 27 percent. Sales in the wholesale segment, on the other hand, were clearly lower than the same period in 2016, partly due to a larger share of the spring/summer collection being delivered during the second quarter instead of the first last year. At the same time the trend we have been seeing, and discussed earlier, is becoming clearer; it is a tough market, especially for our smaller retailers with brick-and-mortar stores, and a time of transformation for the industry. And it’s happening quickly.
The lower sales in the wholesale segment was the main factor behind the earnings decline for the quarter – the seasonally smallest quarter of the year for Odd Molly in terms of sales and earnings.
E-commerce is driving growth
We are seeing and are pleased with several positive signs in the form of strong increases in our web shop and among e-commerce retailers. We continue to expand together with our partner in the US who opened two new stores in Colorado during the quarter.
We are in the midst of the third quarter, our most important and largest in terms of sales and earnings, with summer sales in the beginning and large deliveries of fall/winter merchandise to retailers as well as our own channels during the second half.
Clearer category strategy
Simply put, our task is to design, produce and sell attractive products that customers want to buy. There will always be a place for quality, strong brands and distinctive design – and the playing field continues to change. We must stay attentive and make sure we free up resources to invest where we see the biggest potential for profitable growth. During the year we have created a new way of working with categories to optimize what we offer in each channel, in line with the changing consumer habits we are facing. Going forward Odd Molly will work with smaller main collections and more special collections designed for the different channels.
With a clear focus on the customer we are constantly adapting how to respond to new consumption patterns – and preparing for continued major changes in the market.
Anna Attemark, CEO