Bang & Olufsen: market cap crumbles after warning
(CercleFinance.com) - Bang & Olufsen, the Danish maker of upmarket stereos and TVs, is seeing almost of a third of its market cap wiped out on Thursday after it cut its full-year forecasts.
B&O shares were were down over 31% at 95.8 Danish kronor on Nasdaq Copenhagen, their lowest level in more than a year.
In a statement this morning, Bang & Olufsen said it now expects revenue for the financial year 2018/19 to be at the same level as in 2017/18.
It previously expected its annual revenue to grow by more than 10%.
The group said it had to close down a number of existing sales outlets and establish new ones, which has in turn impacted sales. In addition, issues with a new logistics partner have delayed customer orders in November, it said.
The company maintains its outlook for its margin and free cash flow. Bang & Olufsen will report second-quarter results on 8 January 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
B&O shares were were down over 31% at 95.8 Danish kronor on Nasdaq Copenhagen, their lowest level in more than a year.
In a statement this morning, Bang & Olufsen said it now expects revenue for the financial year 2018/19 to be at the same level as in 2017/18.
It previously expected its annual revenue to grow by more than 10%.
The group said it had to close down a number of existing sales outlets and establish new ones, which has in turn impacted sales. In addition, issues with a new logistics partner have delayed customer orders in November, it said.
The company maintains its outlook for its margin and free cash flow. Bang & Olufsen will report second-quarter results on 8 January 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.