Odd Molly International AB (publ)
Stockholm, Sweden, August 20, 2013Changes progressing according to plan, increased control at distribution level
January 1 – June 30, 2013
· Net sales amounted to SEK 110.8 million (117.9)
· The gross profit margin was 55.3 percent (55.3)
· The operating loss amounted to SEK -11.4 million (3.3)
· The net loss was SEK -9.6 million (-3.0)
· Earnings per share amounted to SEK -1.67 (-0.52)
April 1 – June 30, 2013
· Net sales amounted to SEK 33.6 million (22.2)
· The gross profit margin was 59.1 percent (53.0)
· The operating loss amounted to SEK -13.0 million (-15.8)
· The net loss was SEK -10.5 million (-11.9)
· Earnings per share amounted to SEK -1.83 (-2.07)
Events during the quarter
· Cooperations with the company’s agents in Norway and Denmark have been terminated – Odd Molly is taking over sales responsibility in these markets. One-time expenses of SEK 4 million have been charged against earnings.
· Decision to replace agent in the Netherlands, which will be implemented in the third quarter.
· Lease signed on an Odd Molly store in Täby Centrum shopping center, opening in August.
Comment from the CEO
Sales were limited in the second quarter, as is typical, but still rose to SEK 33.6 million (22.2), mainly because we invoiced a large share of our initial fall shipment during the quarter. At the same time we are seeing rising sales in our own channels, which also explains the higher gross margin. The share of fall merchandise during quarter was about SEK 15 million, compared with SEK 7 million in the previous year. The larger early fall shipment is part of a conscious strategy to create a better flow of merchandise at the right time in the stores.
During the quarter we implemented changes in our Scandinavian agent network as planned, with the goal to increase sales. To obtain better control and come closer to our customers, we have taken over responsibility for sales in Norway and Denmark as of the end of June.
The operating loss for the quarter was SEK -13.0 million, compared with a year-earlier loss of SEK -15.8 million, which is mainly due to a seasonally low volume for the quarter. Earnings were also weighed down by one-time expenses of SEK 4 million to terminate agent agreements in Scandinavia. We see this as a strategically important step to increase volumes and achieve better profitability.
Our own channels and shop-in-shops, particularly Odd Molly’s web shop and the shop-in-shop in the department store Åhléns City in Stockholm, continue to perform very well. I see great potential in strengthening sales work outside and inside the company, at the agent and retailer level, so we will continue to implement changes in our distribution. During the current quarter we have replaced our agent in the Netherlands and signed a lease on our own store in the Täby Centrum shopping center, in suburban Stockholm, which opens on August 29.
The quarter concluded with a gathering of all our agents and sales representatives at a sales meeting in Stockholm at the end of June for a presentation of the next spring and summer collection. That also gave us an opportunity to present a new product line that will be available in selected stores this fall: a limited Home collection of pillowcases and blankets in fitting with Odd Molly’s distinctive design. The products are initially designed to strengthen the brand and increase the flow of new merchandise.
In summary, we are following the plan we have laid down and everyone in the organization is working hard to ensure that every decision we take and activity we engage in will lead to a more successful and profitable Odd Molly.
Anna Attemark, CEO
Please see the full report in the attached PDF file.For further information, please contact:
Anna Attemark, CEO, phone: +46-8-522 28 502
Henrik Fredin, CFO, phone: +46-8-522 28 514
About Odd Molly
Odd Molly is a Swedish company that designs, markets and sells fashion. Odd Molly products are sold through retailers in around thirty countries around the world. In addition, Odd Molly currently has four of its own physical stores in Stockholm, Kungsbacka, Barkarby and Copenhagen, a web shop and three shop-in-shops. Odd Molly has 57 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.
Scheduled information dates
The order value for the first half of 2014 (spring and summer collections) will be announced on September 27, 2013The interim report for July-September 2013 will be released on October 18, 2013
The information in this press release has been published by Odd Molly International AB (publ) on August 20, 2013 at 8.00 am CET in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
Odd Molly International AB
SE-111 27 STOCKHOLM
Phone: +46 8 522 28 500
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.”