Odd Molly International AB (publ)
Stockholm, Sweden, February 17, 2012Tough year – strategic focus has begun
January 1 – December 31, 2011
· Net sales amounted to SEK 292.3 million (355.6)
· The gross profit margin was 56.0 percent (56.6)
· Operating profit amounted to SEK 20.1 million (50.7), corresponding to an operating margin of 6.9 percent (14.3)
· One-time expenses of SEK 6.9 million to shut down the Los Angeles store and discontinue the men’s collection were charged against profit
· Net profit was SEK 14.2 million (36.2). The net margin was 4.9 percent (10.2).
· Earnings per share amounted to SEK 2.48 (6.3)
October 1 – December 31, 2011
· Net sales amounted to SEK 32.9 million (56.1)
· The gross profit margin was 43.4 percent (53.3) Excluding the effect of the inventory write-off, the gross margin was 55.6 percent.
· Operating profit was SEK -13.7 million (0.4)
· Net profit was SEK -9.6 million (1.4)
· Earnings per share were SEK -1.68 (0.24)
· The Board of Directors will propose to the Annual General Meeting a dividend of SEK 3.00 (4.50) per share
Events during the report period
· The order value for the spring and summer 2012 collections was SEK 114 million (165)
· The Extraordinary General Meeting on November 25 resolved to introduce a warrant program for the incoming CEO and Vice President
· In December Anna Attemark took over as the new CEO and Jennie Högstedt Björk as Vice President and Category Manager
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Fantastic potential, but it will take time
2011 was a year that reflected the tough market situation Odd Molly finds itself in. Net sales amounted to SEK 292 million, compared with SEK 356 million in the previous year, and were in line with the announced order values. The gross margin remained stable at a high level. Operating profit for the full-year was SEK 20 million and was charged with expenses of about SEK 7 million to shut the store in the US and discontinue the men’s collection.
After just over a month with the company, it is too early for me to offer any concrete plans on the steps the company will take going forward. Right now I am focusing on understanding the business, its opportunities and challenges, who Odd Molly’s customers are, and which costs create value. My job is to turn sales around and create growth, so this is what I see right now:
A good starting point
During its ten years on the market Odd Molly has maintained a fantastic sales trend and built a strong brand. After investing to broaden its product range, the company decided last fall to refocus on the core business.
The trend will be reversed
Several seasons of declining orders pose a challenge. The trend must be turned around, and my experience tells me that the most important way to regain sales momentum is to start with the customer and create a better balance in the collections.
Enormous potential
Odd Molly has fantastic potential thanks to its excellent products, strong brand and skilled people. The brand is carried by a large number of retailers, and we have begun to take control over sales in our own stores, shop-in-shops and online.
In terms of 2012, I can report that the sales trend has been negative, the market tough and the order value for the first half-year significantly lower than the previous year. We are looking at how we can optimize inventory and analyze all our costs. Obviously, we are also working intensely to sell the fall and winter collection, which will determine Odd Molly’s revenue for the second half of the year, as well as planning future collections.
My job is to create long-term, profitable growth, and I am very optimistic. But it is not going to happen overnight.
Anna Attemark
CEO of Odd Molly For further information, please contact:
Anna Attemark, CEO, phone: +46-8-522 28 502
Johanna Bäckstrand, 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 1,300 retailers in around 40 countries around the world. In addition, Odd Molly currently has two concept stores in Stockholm and Copenhagen as well as two outlets in Kungsbacka and Barkaby. Odd Molly has 58 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 low inventory risk. Odd Molly’s share is traded as of June 21, 2010 on NASDAQ OMX Stockholm.
The information in this press release has been published by Odd Molly International AB (publ) on February 17, 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.”