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Odd Molly International AB (publ)
Stockholm, Sweden, August 20, 2014
New stores and expanded offering - producing intended effect
January 1 - June 30, 2014
· Net sales amounted to SEK 133.9 million (110.8).
· The gross profit margin was 55.2 percent (55.3).
· The operating loss was SEK 3.2 million, against a year-earlier loss of SEK 11.4 million.
· The net loss was SEK 3.2 million, against a year-earlier loss of SEK 9.6 million.
· Earnings per share amounted to SEK -0.55 (-1.67).
April 1 - June 30, 2014
· Net sales amounted to SEK 51.2 million (33.6).
· The gross profit margin was 57.5 percent (59.1).
· The operating loss was SEK -6.8 million, against a year-earlier loss of SEK 13.0 million.
· The net loss was SEK 5.7 million, against a year-earlier loss of SEK 10.5 million.
· Earnings per share amounted to SEK -1.00 (-1.83).
Events during and after the quarter
· In May Odd Molly opened its own store in Väla Centrum, Helsingborg.
· During the quarter a shop-in-shop was opened in Bochum, Germany.
· An agreement was signed with a retailer in Qatar that intends to open an Odd Molly store during the first quarter 2015.
· The Annual General Meeting on April 29 resolved to introduce a warrant program for senior executives.
· During the quarter, Odd Molly opened a pop-up store in Los Angeles that was open a few weeks in August.
· During the quarter a bath collection was launched to complement the upcoming spring and summer collection. After the end of the quarter an expanded home collection was launched, with a line of bedding and bath towels, as an element in creating a complete lifestyle concept.
Comment from the CEO
Odd Molly’s strategy is to have a strong customer focus, a higher share of our own sales to consumers and taking responsibility for selling to retailers in our largest market, Scandinavia. In that way profitability is created, product range improved and increasing control over sales achieved.
During the second quarter we saw the positive effects of our chosen strategy even though the quarter is small in revenue terms.
The increase in the number of our own Odd Molly stores is contributing to higher sales and profitability. In May we opened a new store in Väla, in Helsingborg, with a very positive start. Odd Molly’s web shop continues to grow strongly.
In late July the first part of the fall collection was shipped to customers. The initial release was significantly larger than last year’s corresponding shipment, fully in line with our idea of maintaining a steady flow of new merchandise.
During the quarter we introduced and sold the first part and during the summer the second part of next year’s spring and summer collection. A popular new addition this year is our bath line, which we feel is a good complement to the collection. After the end of the quarter we also launched an expanded home line, where we have gone beyond accessories such as pillows and blankets to now offer bedding (sheets, pillowcases, bedspreads and bath towels) as part of our aim to be a complete lifestyle concept.
For the first time we took responsibility ourselves for sales work in Scandinavia. Our goal is to give customers more attention and follow-up in order to help them to benefit even more from their Odd Molly purchases.
We have also taken several major steps outside Sweden. For a few weeks in August we opened a pop-up store in Los Angeles, and we have a newly opened shop-in-shop in Bochum, Germany, which is being managed by one of our retailers. As of the first quarter 2015 there will also be an Odd Molly store in Qatar, also under outside management.
As I have said before, we are strongly focused on the things we can impact and taking steps in the right direction despite the tough reality faced by our retailers in many markets.
Anna Attemark, CEO
Please see the full report in the attached PDF file.