Odd Molly International AB (publ)
Stockholm, Sweden, October 18, 2013Sales in line with order value – result reflects aggressive measures
January 1 – September 30, 2013
· Net sales amounted to SEK 180.8 million (189.4)
· The gross profit margin was 55.0 percent (55.0)
· The operating loss amounted to SEK -10.0 million (7.2). The result was charged with one-time expenses of SEK 5 million
· The net loss was SEK -8.0 million (5.9)
· Earnings per share amounted to SEK -1.39 (1.02)
July 1 – September 30, 2013
· Net sales amounted to SEK 70.1 million (71.4)
· The gross profit margin was 54.5 percent (54.6)
· Operating profit amounted to SEK 1.5 million (10.5)
· Net profit amounted to SEK 1.6 million (8.9)
· Earnings per share amounted to SEK 0.27 (1.54)
Events during the quarter
· The order value for the spring and summer 2014 collection amounted to SEK 120 million (95).
· In August the company opened an Odd Molly store in the Täby Centrum shopping center.
· During the quarter the agent in the Netherlands was replaced.
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Comment from the CEO
I am very pleased to reiterate the latest order figures for next spring and summer (2014), which amounted to SEK 120 million, against SEK 95 million for the same collection this year. Living for and in the future is part of the everyday life of an apparel company, at the same time that we have to be professional in how we report and analyze our previous numbers.
Third quarter sales amounted to about SEK 70 million and were about in line with the previous year. If we look at the distribution between sales to external retailers and sales through our own channels, we see that the share for external retailers has declined, in line with the fall order value we announced in March, while our own sales are increasing according to plan.
Our own stores, web shop, shop-in-shops and outlets continue to perform very well. At the end of August we opened a fine new Odd Molly store in the Täby Centrum shopping center, outside Stockholm.
We continue to make changes in our distribution network to strengthen opportunities for profitable growth. During the quarter we replaced our agent in the Netherlands, and earlier this year we took over responsibility ourselves for sales in Norway and Denmark. The common denominator, we feel, is that they are the right long-term steps. Taking responsibility ourselves means we can be more present, provide good support and better develop various sales channels. This equation – expenses now, revenue later – is reflected in the result we are reporting today.
Operating profit for the quarter amounted to SEK 1.5 million (10.5), while the operating loss for the period was SEK -10.0 million (7.2). Expenses are trending as planned, having increased due to strategic measures mainly at the agent and retail level. Consequently, earnings for the entire period have been weighed down by one-time expenses of SEK 5 million for the changes in the agency agreements and expenses of about SEK 5 million related to new stores.
In our ongoing action program so far we have formulated a new collection strategy, strengthened the organization and implemented changes in our sales channels. We are beginning to see an impact from our measures, not least in the latest order value. This strengthens us in our continued efforts to create profitable and sustainable growth. We know what we are doing is right – and that it takes time.
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 61 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 year-end report for July-December 2013 will be released on February 19, 2014.
The information in this press release has been published by Odd Molly International AB (publ) on October 18, 2013 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.”