January 1 – March 31, 2017
· Total operating revenue amounted to SEK 126.1 million (117.7), an increase of 7 percent.
· The gross profit margin was 54.0 percent (54.2).
· Operating profit amounted to SEK 7.5 million (8.5).
· Net profit amounted to SEK 4.7 million (5.9).
· Earnings per share before dilution amounted to SEK 0.81 (1.02).
· Earnings per share after dilution amounted to SEK 0.77 (1.02).
Comment from the CEO
A time of transformation for the industry
Quarter
Odd Molly continues to deliver growth and reported a sales increase of 7 percent in the first quarter of the year. Growth is being driven by our own channels, with the strongest increase from the web shop, while sales at the wholesale level were in line with the previous year. In this tough market we should be pleased with our performance during the quarter, but we want to see even stronger sales momentum.
Odd Molly continues to invest in the brand and prepare for future expansion. We remain profitable, with an operating margin of 6.0 percent, against 7.2 percent in the first quarter of 2016.
Market
We are clearly experiencing a shift in retail, which is affecting everyone in different ways. More and more brick-and-mortar stores are having a tough time, while many online retailers are very agile and can be aggressive in the fight for customers through discounts, offers and service levels. Early on Odd Molly established a digital strategy that is delivering results.
During the last quarters, the market has been characterized by promotions and discounts. At Odd Molly, we have a strong customer focus and continually adapt to new consumption patterns. We are committed to sustainable products and processes, which we believe create credibility and loyalty. But perhaps most important is a business model based on omnichannel retailing ourselves and through outside partners. Odd Molly’s products have to be available where and when our customers want to shop, through Odd Molly’s own or partner-owned stores or through external retailers’ channels, in physical outlets or on the web.
New merchandise is another important tool, and we aim to surprise our customers with various offers throughout the season. During the quarter new product lines were launched for underwear and bath, both of which have been very positively received.
Growth
In conclusion, Odd Molly is growing, and intends to continue to grow while staying profitable. We continuously take new initiatives internationally, where primarily the US is developing positively. During the quarter our partner there opened a new store in Boulder, Colorado, and now operates totally three stores in the state.
We are building a stronger international platform. Expansion costs money, but we feel that we have an effective and risk-balanced model. We will continue to take steps forward, both big and small, well aware that we have to be open to continuous changes.
Anna Attemark, CEO
Please see the full report in the attached PDF file.