Odd Molly International AB (publ)
Stockholm, Sweden, August 17, 2012Current changes pave the way for long-term growth
January 1 – June 30, 2012
· Net sales amounted to SEK 117.9 million (149.7)
· The gross profit margin was 55.3 percent (57.0)
· The operating loss was SEK -3.3 million (16.0)
· The net loss was SEK -3.0 million (10.6)
· Earnings per share amounted to SEK -0.52 (1.85) (based on average number of shares)
April 1 – June 30, 2012
· Net sales amounted to SEK 22.2 million (28.6)
· The gross profit margin was 53.0 percent (59.3)
· The operating loss was SEK -15.8 million (-7.4)
· The net loss was SEK -11.9 million (-5.4)
· Earnings per share amounted to SEK -2.07 (-0.94)
Events during the quarter
Organizational changes have been implemented to strengthen the company’s prospects of profitable growth. Expenses of about SEK 2.2 million related to the reorganization were charged against the quarterly result.
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Comment from the CEO
With Odd Molly’s business model, the large majority of sales are generated in the first and third quarters. The significantly lower revenues typical of the second quarter therefore generally mean a weak result. This year is no exception, and it also includes expenses related to the current changes we are making. At the same time a lot of positive things are happening in the company; the web shop continues to develop very positively, we have cleaned out old merchandise from our inventory and we have maintained an effective supply chain to customers. But perhaps most importantly, we changed our organizational structure during the quarter to improve opportunities to reach our goals. All the work being done is in line with our three priorities: brand management, customer focus and sales.
The first collection where we clearly begin to see the impact of our brand management work is spring/summer 2013, which was shown to Odd Molly’s agents and major customers at a sales meeting in June. This is a valuable platform and kick-off for our sales work, where the design team presents coming collections to our key network, and a fantastic opportunity for direct feedback from the market. As part of the effort to create stronger collections and increase sales, we have decided to prioritize a closer dialogue with agents and retailers over individual fashion shows.
Feedback on the collection from sales meetings and trade shows has been positive. I am pleased with the parts where we have had a direct impact ourselves, but would add that there are many countries facing a very tough market climate.
We start the fall with an organization ready for future growth and a strong drive to continue conquering the world with Odd Molly’s beautiful design concept and a stronger collection than in some time.
Anna Attemark, CEO
Please find the full report in the attached pdf-file.About Odd Molly
Odd Molly is a Swedish company that designs, markets and sells fashion. Odd Molly products are sold through retailers in around 35 countries around the world. In addition, Odd Molly currently has four of its own physical stores in Stockholm, Kungsbacka, Barkarby and Copenhagen as well as a web shop. Odd Molly has 52 employees. The company’s historically profitable growth is the result of creative design, consistent branding and a business model that facilitates expansion with limited capital requirements and low inventory risk. Odd Molly’s share is traded as of June 21, 2010 on NASDAQ OMX Stockholm.
For further information, please contact:
Anna Attemark, CEO, phone: +46-8-522 28 502
Johanna Bäckstrand, CFO, phone: +46-8-522 28 514
The information in this press release has been published by Odd Molly International AB (publ) on August 17, 2012 at 8.00 am CET in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
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”. Odd Molly also produces a newsletter with reports on daily operations. To subscribe, go to www.oddmolly.com and click “sign up for our newsletter.”