PRESS RELEASE
Stockholm, Sweden, 13 April 2010
Odd Molly’s orders for the fall and winter 2010 collections continued to show stable growth compared with the same period of 2009. Orders placed for fall/winter 2010 amount to about SEK 175 million, an increase of around 11 percent compared with order value of SEK 158 million for the same collections in 2009.For the upcoming fall and winter season Odd Molly has received orders totaling SEK 175 million in value, or about 11 percent more than for the corresponding collections in 2009. The comparison includes a slightly negative currency effect for this year’s collections. At comparable exchange rates, the increase was just over 13 percent. As in previous years, a pre-spring shipment will be delivered in the fourth quarter. The value of that shipment was about SEK 17 million in 2009.
“We are pleased that we continued to raise our fall and winter sales despite continued tough economic conditions in some markets, but our order backlog still does not meet our expectations. We have realized that the pricing segmentation in the collection has not been optimal for our retailers, with too large a share of expensive models. We are planning certain adjustments to our collections in terms of their price mix in upcoming seasons,” says CEO Christina Tillman.
The order value for fall/winter 2010 includes orders from the three Group-owned stores as well as a small menswear collection launched this fall. Licensed skincare and eyewear products are developing stably, among other things, the licensee for eyewear reached a distribution agreement with the Swedish chain Synsam. As previously announced, the above-mentioned complementary products account for a small share of the Group’s sales and do not yet have a significant impact on the total order value.
“Our company-owned stores, new cooperations and the menswear collection all have one thing in common: they have received a positive response in the market. But it takes time to get a new product line or brand to market. We are working conscientiously and analyzing every step of the process to ensure that the next step we take is the right one,” says Christina Tillman.
Odd Molly in the world
Odd Molly has received orders from 36 countries for the recently launched fall and winter 2010 collections. In 29 of these countries, Odd Molly is represented by its own agents or distributors.
The majority of Odd Molly’s largest markets also grew the most in real terms: Sweden, Norway, the UK, Switzerland and Germany. Percentage-wise, however, Finland, Australia and Greece increased the most. It is worth noting that the company replaced its agent in Greece, which is thought to be the reason for the increase there despite a very tough economic situation in the country.
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Although the U.S. order value rose compared with the corresponding collections in 2009, the measures that have been taken, including the introduction of a new sales organization, are not expected to have an immediate impact, since it could take a number of seasons before sales eventually increase. A Group-owned store opened in Los Angeles during the first quarter and drew widespread international attention, while a new agent has begun working to build up demand and strengthen Odd Molly’s presence in the market.
In southern Europe, the fall and winter collections have not generated the order numbers expected, which is largely thought to be the result of the weak economic conditions in these countries, combined with the pricing structure of the collection.
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After the order deadline, Odd Molly produces only enough of the upcoming collection to fill confirmed orders from external retailers and orders from Group-owned stores based on estimated sales volume, which results in little tied-up inventory and little risk. The remaining uncertainty regarding final sales is mainly due to future exchange rates and the solvency of individual retailers. These factors will continue to receive close attention.
For further information, please contact:
Christina Tillman, CEO Odd Molly, phone: +46-8-522 28 502 or mobile: +46-733-10 60 00
Odd Molly International AB is obligated to publish the information in this press release in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was provided for public release on 13 April 2010 at 8.00 a.m. CET.About Odd Molly
Odd Molly is a Swedish company which designs, markets and sells fashion. In 2009 Odd Molly products were sold through 1,450 retailers and one company-owned store in 42 countries around the world. At the yearend of 2009 Odd Molly had 40 employees at offices in Stockholm and Los Angeles as well as the company-owned store in Stockholm. 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 First North and its Certified Adviser is Swedbank.
Scheduled information dates
• The interim report for first quarter, January-March 2010, will be released on April 22, 2010.
• 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
Odd Molly International AB, Kornhamnstorg 6, SE-111 27 Stockholm, Sweden, phone: +46 8 522 28 500
www.oddmolly.com
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