Odd Molly International AB (publ)
Stockholm, Sweden, February 18, 2016Further increase in sales and stronger profitability
January 1 – December 31, 2015
· Net sales amounted to SEK 345.0 million (294.3), an increase of 17 percent.
· The gross profit margin was 55.6 percent (54.1).
· Operating profit amounted to SEK 12.5 million (5.5).
· Net profit amounted to SEK 9.8 million (4.1).
· Earnings per share amounted to SEK 1.70 (0.71).
October 1 – December 31, 2015
· Net sales amounted to SEK 75.7 million (71.9), an increase of 5 percent.
· The gross profit margin was 59.6 percent (53.7).
· Operating profit amounted to SEK -2.8 million (0.1).
· Net profit amounted to SEK -2.4 million (0.5).
· Earnings per share amounted to SEK -0.42 (0.09).
· The Board of Directors is proposing to the Annual General Meeting a dividend of SEK 1.50 (1.00) per share for the financial year 2015.
Events during and after the quarter
· In October Odd Molly opened its own store in Helsinki, Finland, and a franchise in Prague, Czech Republic. In November Odd Molly opened its own store in Mall of Scandinavia, in Solna, Sweden.
· During the quarter a contract was signed for Odd Molly’s own store in the Emporia shopping center in Malmö, Sweden. The opening is scheduled for the first quarter 2016.
· An extraordinary general meeting will be held on February 24, 2016 to decide on a warrant program for senior executives.
Comment from the CEO
We have established clear goals, done what we set out to – and delivered results. Odd Molly leaves 2015 behind as a stronger company with profitable growth despite unfavorable currency movements.
When I summarize what lies behind the past year’s success, I mainly see three strategic factors that made a significant difference:
· A strong team that continues to develop the company with creativity, innovation and smartness.
· The strategy to increase sales mainly through more of our own stores and shop-in-shops. During the year we opened five of our own stores, including two in the fourth quarter, as well as 12 shop-in-shops. Our own online sales and existing stores performed strongly during the year.
· Investments in our own sales team and an increased digital presence.
To date our focus has been on markets where we have our own sales team and are closer to both retailers and consumers. Our focus going forward is to make “more markets like Sweden,” with Finland and Norway topping the list. The fact that sales outside the Nordic region aren’t increasing more is irritating, but not surprising. If we do nothing, nothing will happen. I have said it before, change requires change, and we intend to increase our efforts in priority markets.
Seasonally, the fourth quarter isn’t one of Odd Molly’s biggest. We continued to grow and invest in new stores and channels. This generates startup expenses in the short term, but I am convinced that we will continue to see the positive effects of our investments. In summary, I can say that where we have the greatest control, sales are increasing the most.
During the quarter Odd Molly opened its own stores in Mall of Scandinavia, in Solna, Sweden, and one in Helsinki, Finland, as well as a franchise in Prague, Czech Republic. We also signed a contract on our own store in the Emporia shopping center in Malmö, Sweden, which opens now in the first quarter. We are opening a shop-in-shop in Denver, in the US, in February. It is a symbolically important event and demonstrates the flexibility of our business model.
In essence, Odd Molly is a lifestyle concept with clothing for girls who like to go their own way. For us, this means a wealth of opportunities to improve our offering. During the year we launched new smaller collections of footwear, denim and Daydream, a collection with organic cotton. At the same time the development of Bath, Home and Rain are continuing.
Going forward we will continue to refine our work on collections, production and distribution to steer the company toward further profitable growth. We will launch more mini-collections within the framework of the lifestyle brand and add more stores and our own online sales in priority markets. The goal is to get Odd Molly, the brand and our products out to a broader audience and get more Mollys in the world to buy our products through more retailers in different categories.
Anna Attemark, CEO
Please see the full report in the attached pdf file.About Odd Molly
Odd Molly is a Swedish company that designs, markets and sells distinctive fashion. The company’s products are mainly sold through agents to retailers in around thirty countries around the world, which facilitates expansion with limited capital requirements. Odd Molly is responsible for selling to external retailers in the Scandinavian market and also manages 13 of its own physical stores and its own web shop. The Odd Molly share is traded as of June 21, 2010 on Nasdaq OMX Stockholm.
Scheduled information dates
The annual report for 2015 will be released in late March 2016.The interim report for January-March 2016 will be published on April 19, 2016.The Annual General Meeting 2016 will be held on April 19, 2016.The interim report for April-June 2016 will be published on August 18, 2016The interim report for July-September 2016 will be published on October 19, 2016.
The information in this press release has been published by Odd Molly International AB on February 18, 2016 at 8.00 am CET in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
Odd Molly International AB
SE-111 27 STOCKHOLM, Sweden
Phone: +46 8 522 28 500
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