Odd Molly International AB (publ)
Stockholm, April 23, 2009
CONTINUED STRONG SALES – GROSS PROFIT MARGIN AFFECTED NEGATIVELY BY EXCHANGE RATE EFFECTSJanuary 1 – March 31, 2009
• Net sales increased by 29.1 percent to SEK 136.7 million (105.9)
• The gross profit margin was 53.6 percent (58.5)
• Operating profit increased to SEK 33.4 million (32.9), corresponding to an operating margin of 24.2 percent (31.1)
• Net profit amounted to SEK 24.9 million (23.3). The net profit margin was 18.2 percent (22.0)
• Earnings per share amounted to SEK 4.33 (4.05)
• Odd Molly opened its first store in February
• In April Odd Molly reported an order value for fall/winter 2009 of SEK 158 million, representing an increase of 23 percent compared with the same period of 2008. Based on orders placed for all of the year’s main collections, the order value for the full-year 2009 will be around SEK 296 million, compared with sales of nearly SEK 268 million in 2008.
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Comment from the CEO
This spring has begun well, with higher sales orders, quick deliveries and a positive energy.
Looking at profit, we remain at a high level, even though margins were lower than the previous year in percentage terms. This is mainly due to unfavorable exchange rates, though also to aggressive measures we had previously planned. Among other things, we launched our first major international advertising campaign during the spring, with supermodel Helena Christensen as the face of the brand. Great energy has also been devoted for some time to the preparation and launch of Odd Molly’s first store, which opened its doors in Stockholm in February. At the same time we have strengthened the organization to create opportunities for continued growth.
During the first quarter we delivered and invoiced the entire spring collection and a larger part of the summer collection than in previous years. This means that sales during the second quarter will be lower year-over-year. As I have noted previously, it makes more sense to measure Odd Molly’s development on a semiannual basis, rather than by individual quarter. Profit will be weaker during the second quarter than in previous years due to the lower percentage of the season’s total sales and further investments in future expansion.
As I have said before, 2008 was an exceptionally good year when almost everything went our way – from exchange rates to fantastic awards. Sales orders for the fall and winter collections increased 23 percent. The total order value for the current year is approximately SEK 296 million, compared with SEK 268 million in 2008.
We are very pleased to have started the year by delivering continued growth, strong profitability and positive order numbers, particularly in light of turbulent market conditions at present. Our aim is to remain aggressive in an increasingly tough market climate. We also want to focus on higher quality, future development and opportunities to gain market share; in the organization, our international representation, the store, marketing and in our new alliances.
Christina Tillman, President and CEO
Please find the full report in the attached pdf.About Odd Molly
Odd Molly is a Swedish company which designs, markets and sells fashion for women through retailers worldwide. The brand’s signature is beautiful, personal, sensual designs, combined with high quality and a distinctive profile. Odd Molly products are sold through 1,550 retailers and one company-owned store in 36 countries around the world, with local representation in 24 of them. Odd Molly has 34 employees at offices in Stockholm and Los Angeles, as well as the company-owned store in Stockholm. Sales amounted to SEK 268 million in 2008 with operating profit of SEK 68 million. Odd Molly’s profitable growth is the result of creative design, consistent branding and a business model that facilitates expansion with limited capital requirements and minimal inventory risk. Odd Molly’s Chief Designer received the prestigious “Golden Button” fashion design award in August 2008 from the magazine Damernas Värld.
Odd Molly’s share is traded on First North and its Certified Adviser is Swedbank.