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Odd Molly International AB (publ)
Stockholm, Sweden, April 19, 2016
More aggressive investments - profitable growth
January 1 - March 31, 2016
· Net sales amounted to SEK 117.7 million (100.7), an increase of 17 percent.
· The gross profit margin was 54.2 percent (54.2).
· Operating profit amounted to SEK 8.5 million (9.5).
· Net profit amounted to SEK 5.9 million (7.6).
· Earnings per share before dilution amounted to SEK 1.02 (1.33).
Events during and after the quarter
· In February Odd Molly opened a store in the Emporia shopping center in Malmö.
· During the quarter a contract was signed for an Odd Molly store in Hansa Citygalleria, Malmö, scheduled to open in fall 2016.
· An Extraordinary General Meeting on February 24 resolved to adopt a new incentive program for the Chief Executive Officer and Vice President.
· In March Johanna Palm was appointed the new CFO effective April 18, 2016.
· After the end of the quarter a contract was signed for the first company-owned store in Norway. The grand opening of the Odd Molly store on Karl Johans gate in Oslo is planned at the end of May 2016.
Comment from the CEO
The first quarter of 2016 reflects Odd Molly’s investments in growth initiatives. We increased sales by 17 percent and succeeded - despite initial startup costs for new stores and other strategic investments - in driving growth with profitability.
We have had a fantastic online sales increase thanks to broad-based proactive efforts, and our other sales channels have also performed strongly. During the quarter we reached a total of 14 of our own stores, which is six more than the same period last year. Our newest product groups, swimwear and footwear, are quickly selling out, which gives us the confidence to further develop Odd Molly’s lifestyle concept both physically and digitally.
During the quarter we opened our own store in the Emporia shopping center outside Malmö and we will open another store in the Malmö area this fall. In addition, we are now expanding to Norway, where we are opening our own store in a prime location in central Oslo early this summer. We are seeing a positive trend in the US for Odd Molly, where, for example, one of our retailers in Vail, after generating very high sales with our shop-in shop solution, has decided to open an Odd Molly store there.
A continued expansion with a focus on our own retail operations opens new opportunities at the same time that it creates new demands. Expenses and cash flow are carefully being monitored. We are in an investment phase where we are incurring expenses that will generate continued revenue increases in the short and long term. Over time these expenses will decrease, however, in relation to sales. We have further help as of today from our new CFO, Johanna Palm.
We continue to develop Odd Molly’s collections, concept and retail network according to the strategy we have staked out. We repeatedly saw evidence in 2015 that we are doing the right things. A lot of stimulating work still remains in order to drive our web and retail sales as well as to learn from our Swedish wholesale sales force and grow sales in Norway, Finland and Denmark in the same way. We are looking forward to many strong springs.
Anna Attemark, CEO