PRESS RELEASE
Stockholm, April 8, 2011Odd Molly’s recently concluded sales period for its fall and winter 2011 collections generated an order value of approximately SEK 140 million, which is around 20 percent lower than the approximately SEK 175 million for the corresponding collections last year. Adjusted for negative exchange rate effects, the order value for fall/winter 2010 was about 15 percent lower than for fall/winter 2010. As in previous years, orders will be taken for a pre-spring collection during the second half-year in connection with this fall’s sales of spring/summer 2012.
“A generally weak clothing market in several of our key markets during the past season, combined with an unfavorable product mix in Odd Molly’s fall 2010 collection, has adversely affected orders for the upcoming season’s collection. We would also note that economic conditions in many of Odd Molly’s markets remain tough,” says Christina Tillman, CEO of Odd Molly. “We have begun to adjust our price mix, optimize the collection offering and strengthen sales efforts, the visible results of which are expected gradually in the year ahead,” says Christina Tillman, CEO of Odd Molly.
The order value for fall/winter 2011 amounted to about SEK 140 million, compared with an order value of about SEK 175 million for the same collections last year. The order value for fall/winter 2011 was about 20 percent lower than a year ago and about 15 percent lower when adjusted for negative exchange rate effects. About SEK 16 million of the order value relates to the pre-fall shipment in June. The total order value includes orders from external retailers and orders for company-owned stores in Stockholm, Los Angeles and Copenhagen.
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Different trends in different markets
Odd Molly received orders from 35 countries during the recently concluded sales period for its fall and winter 2011 collections. In 28 of these countries Odd Molly has its own representation through agents or distributors.
Odd Molly’s largest market, Sweden, reduced its total order value, which was partly because a less competitive collection for fall 2010 led to weaker retail sales and , as a result, is considered to have affected order bookings in spring 2011, in combination with weak apparel sales in Sweden and a selective choice of retailers. A similar pattern is evident in the Norwegian market.
Markets that increased their orders included Germany, France and Japan. Switzerland, the Netherlands and Greece continued to grow in local currency. The Finnish market grew the most, with an increase in order value of 60 percent compared with the corresponding collections last year. Sales have been launched in Russia with a new distributor. As a whole, Odd Molly’s six largest markets account for 76 percent of the order value for fall/winter 2011.
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Odd Molly’s sales in the U.S. have not reached the desired levels and the company is evaluating how to manage the venture going forward. A well-publicized presentation of Odd Molly’s fall and winter collections was held during New York Fashion Week in February.
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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 reduces tied-up inventory and 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 of 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 April 8, 2011 at 8.00 a.m. CET.
About Odd Molly
Odd Molly is a Swedish company that designs, markets and sells fashion. Odd Molly products are sold through around 1,300 retailers in around 35 countries around the world. In addition, Odd Molly currently has five of its own stores in Stockholm, Kungsbacka, Barkarby, Los Angeles and Copenhagen. Odd Molly has 57 employees. The company’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 as of June 21, 2010 on NASDAQ OMX Stockholm.
Odd Molly International AB, Kornhamnstorg 6, SE-111 27 STOCKHOLM, Sweden, Phone: +46 8 522 28 500, www.oddmolly.com (http://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, which reports on its day-to-day operations. To subscribe, go to www.oddmolly.com (http://www.oddmolly.com) and click “sign up for our newsletter.”