Bang & Olufsen: shares plunge after big drop in sales
(CercleFinance.com) - Bang & Olufsen shares dived over 22% on Tuesday after an unexpected decline in TV revenue over the past quarter prompted the company to reassess its full-year outlook.
Based on preliminary sales numbers, revenue for the third quarter of the 2018/19 financial year is estimated to reach 710 million Danish kronor, down 18% year-on-year.
The drop has been driven by lower-than-expected TV revenue as retailers reduced their level of inventory, the group said.
B&O said it now expects FY 2018/2019 revenue to decline around 10% from the previous financial year.
For the record, the company previously expected revenue to be at the same level as in 2017/2018.
Last but not least, the group's share buyback programme is to be discontinued, it added.
All these announcements clearly disappointed the market, with the shares plunging 22.6% at 63 Danish kronor on the OMX market this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Based on preliminary sales numbers, revenue for the third quarter of the 2018/19 financial year is estimated to reach 710 million Danish kronor, down 18% year-on-year.
The drop has been driven by lower-than-expected TV revenue as retailers reduced their level of inventory, the group said.
B&O said it now expects FY 2018/2019 revenue to decline around 10% from the previous financial year.
For the record, the company previously expected revenue to be at the same level as in 2017/2018.
Last but not least, the group's share buyback programme is to be discontinued, it added.
All these announcements clearly disappointed the market, with the shares plunging 22.6% at 63 Danish kronor on the OMX market this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.