PRESS RELEASE
Stockholm, April 22, 2010January 1 – March 31, 2010
• Net sales increased by 10.1 percent to SEK 150.5 million (136.7)
• The gross profit margin increased to 55.6 percent (53.6)
• Operating profit amounted to SEK 31.8 million (33.4), corresponding to an operating margin of 21.1 percent (24.4)
• Net profit amounted to SEK 22.7 million (25.0). The net margin was 15.1 percent (18.3)
• Earnings per share amounted to SEK 3.94 (4.34)
• Odd Molly opened its own store in Los Angeles in February
• In April Odd Molly reported an order value for fall/winter 2010 of SEK 175 million, an increase of 11 percent compared with the order value for the same period of 2009
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Comment from the CEO
Sales growth remained stable during the first quarter of the year at about 10 percent. We have said that we will continue to grow while under control, but still be willing to invest, be aggressive and try new things, which I feel is reflected in our first-quarter results. Operating expenses were slightly higher than the same quarter of 2009, as planned, owing to our investments. Nevertheless, the operating margin was still a strong 21 percent. At the same time the gross profit margin rose during the first quarter, largely thanks to a stronger Swedish krona and because forward exchange contracts provide greater stability in terms of the impact on gross profit. As a share of sales, inventories trended positively and were lower than the previous year. Spring merchandise and the large share of the summer collection were invoiced during the quarter, which means that the second quarter will be weak, as in previous years.
In February Odd Molly’s new store in Los Angeles celebrated its grand opening with members of the international fashion elite in attendance. The event attracted a great deal of interest, especially in the U.S. We have made some adjustments to our organization and network, which we feel will help us in the U.S. market in time.
In April Odd Molly reported an order value for fall/winter 2010 of SEK 175 million, which represents an increase of 11 percent compared with the same collections in 2009. We are pleased that we continued to raise our fall and winter sales despite tough economic conditions in some markets, but our order backlog still does not meet our expectations. Based on orders from retailers, the fall and winter collections have been well received, but we have to – and will – reassess our price mix.
Odd Molly is maintaining a high level of activity and creativity. Looking immediately ahead, we are opening our third concept store, this time in Copenhagen, an outlet in Kungsbacka, launching our first menswear collection through retailers, and will soon finish the design of the spring and summer 2011 collections. Before the year is out we also expect the company’s share to be listed on NASDAQ OMX Stockholm, which we anticipate will mark the start of an exciting new chapter in Odd Molly’s history. We will continue to go our own way, value creativity and improve the company’s quality work at every level – with an eye on continuous improvements.
Christina Tillman, President and CEO
Please find the full report in the attached pdf-fileAbout Odd Molly
Odd Molly is a Swedish company that designs, markets and sells fashion. Odd Molly products were sold in 2009 through around 1,450 retailers and one company-owned store in 42 countries around the world. Odd Molly has 43 employees at offices in Stockholm and Los Angeles as well as the company-owned stores. 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 share is traded on NASDAQ OMX First North and its Certified Adviser is Swedbank.
Odd Molly International AB is obligated to publish the information in this interim report in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was provided for public release on April 22, 2010 at 8.00 a.m. CET.
Scheduled information dates
• The Annual General Meeting will be held on April 22, 2010.
• The interim report for second quarter, April-June 2010, will be released on August 20, 2010.
• Order values for the first half-year 2011 (spring/summer collections) will be released on October 8, 2010.
• The interim report for third quarter, July-September 2010, will be released on October 21, 2010.
For further information, please contact:
Christina Tillman, CEO of Odd Molly, phone: +46-8-522 28 502 or mobile: +46-733-10 60 00
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Odd Molly International AB, Kornhamnstorg 6, SE-111 27 Stockholm, Sweden,Phone: +46 8 522 28 500
www.oddmolly.com
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