Odd Molly International AB (publ)
PRESS RELEASE
Stockholm, Sweden, October 19, 2012Sales in line with expectations – previous decline in orders has slowed
January 1 – September 30, 2012
· Net sales amounted to SEK 189.4 million (259.4)
· The gross profit margin was 55.0 percent (57.6)
· Operating profit amounted to SEK 7.2 million (33.8), corresponding to an operating margin of 3.8 percent (13.0)
· Net profit was SEK 5.9 million (23.9)
· Earnings per share amounted to SEK 1.02 (4.15)
July 1 – September 30, 2012
· Net sales amounted to SEK 71.4 million (109.7)
· The gross profit margin was 54.6 percent (58.4)
· Operating profit was SEK 10.5 million (17.8), corresponding to an operating margin of 14.7 percent (16.2)
· Net profit amounted to SEK 8.9 million (13.3)
· Earnings per share amounted to SEK 1.54 (2.30)
Events during the quarter
· The order value for the spring/summer 2013 collection amounted to SEK 95 million (114)
· New sales manager and CFO recruited
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Comment from the CEO
Sales in the third quarter were in line with the announced order value after the fall collection and large part of our winter merchandise were delivered to stores. We are receiving constructive and positive feedback from our retailers, and I would add that our own sales channels, including Odd Molly’s web shop, are developing well. The weaker earnings are mainly the result of lower volumes, which we are not pleased with. The entire organization is clearly focused on creating future growth.
We took several steps during the quarter to achieve our goals in terms of customer value, newsworthiness and sales. The biggest focus during the quarter was on the many parts that affect the ultimate success of a collection: everything from price and product mix to packaging and the composition of the collection. We are working every day to create a distinctively designed, customer-focused collection, obviously based on Odd Molly’s unique style.
As I said when we announced our order figures for the coming spring and summer collection in September, we are proud of the collection and the fact that we have succeeded in slowing down an accelerating order decline. The final outcome is weak, but clearly positive: higher average orders and lower average prices show that our category and pricing strategy is working. A lot of work has been done, but even more lies ahead.
To achieve newfound success we have put a clearly focused organization in place with experienced colleagues as well as new talents. I am very pleased to announce that we have recently hired Mads Kelö to take responsibility for driving the Group’s international sales. He worked most recently with IC Company and will begin at Odd Molly in November, when he will be joined by Henrik Fredin, from Gant, who at the same time takes over as CFO. I feel that together we form a very strong, experienced and results-oriented management team.
We look forward to the future with renewed energy. Next on the agenda is to surpass ourselves with the next collection.
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 30 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 54 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 October 19, 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.”