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Odd Molly International AB (publ)
Stockholm, Sweden, August 18, 2016
Investments continue to deliver growth
January 1 - June 30, 2016
· Total operating revenue amounted to SEK 199.1 million (157.3), an increase of 27 percent.
· The gross profit margin was 54.9 percent (54.7).
· Operating profit amounted to SEK 5.9 million (3.3).
· Net profit amounted to SEK 3.0 million (2.7).
· Earnings per share before dilution amounted to SEK 0.51 (0.47).
April 1 - June 30, 2016
· Total operating revenue amounted to SEK 81.4 million (56.6), an increase of 44 percent.
· The gross profit margin was 56.0 percent (55.5).
· The operating loss amounted to SEK -2.5 million (-6.2).
· The net loss amounted to SEK -2.9 million (-5.0).
· Earnings per share before dilution amounted to SEK -0.51 (-0.86).
Events during and after the quarter
· On April 18 Johanna Palm took over as the new CFO.
· Odd Molly’s Annual General Meeting was held on April 19. All resolutions were approved in accordance with the proposal by the Board of Directors.
· In May Odd Molly opened the Group’s first store in Norway, on Karl Johans gate in Oslo.
In June an Odd Molly store was opened in Vail, Colorado, in the US, through a local retailer.
Comment from the CEO
Nothing happens by chance. The progress we are making is the result of a determined strategy. Four years ago Odd Molly began a process of step-by-step changes to create growth, where the top priority was to improve the product range and create a distinctive concept. Step two was to increase control and customer focus at the distribution level, since our sales at the time were mainly through a single channel - wholesale - through strong resellers. But we knew even then that our segment would generate a larger share of sales online and therefore we set a goal to be a top digital player. In addition, we decided to establish more of our own stores as well as shop-in-shops through resellers in order to further strengthen the brand, and thereby our sales
Our performance in the first half of 2016 is further proof that the strategy is working, and today we reported record sales on a twelve month basis. Second quarter sales increased a resounding 44 percent, largely thanks to a conscientious effort to increase retail sales and reduce seasonal fluctuations. The change in strategy has an especially positive effect on the second quarter, which was seasonally slower with the previous model. For the first six months of 2016 the Group’s sales grew by 27 percent, mainly driven by e-commerce and new stores. At the same time we almost doubled operating profit for the half-year to nearly SEK 6 million, compared with just over SEK 3 million in the previous year.
Growth in all channels
It is especially encouraging to see that e-commerce - our own and others’ - is now strongly driving growth, at the same time that all other channels are growing. Odd Molly’s own web shop continues to do fantastically well, our new stores are delivering great sales contribution and we are growing at the wholesale level.
We continue to open stores, form new alliances and improve what we have. Sweden is still the engine that pulls us, but we are learning, adjusting and investing in our foreign markets, where we have much more to give.
During the quarter we opened our first store in the Norwegian market, on Karl Johans gate in Oslo. We see this as an important step to increase awareness and sales in Norway.
Our partner in Vail, Colorado, in the US, saw that demand for Odd Molly merchandise was so high that they opened an Odd Molly store in the spring. While not adding significantly to the Group’s volume, this too is an opportunity to strengthen the brand internationally, at low risk, in a location that attracts large numbers of people from around the world.
Growth on several fronts
We continue to refine Odd Molly’s design concept and launch new product groups. New this year is a footwear collection, which has sold very well. Odd Molly’s first activewear line has been in stores since April and a beautiful lingerie collection will reach consumers in November.
Our focus is clearly on growth. We have invested heavily in stores and our own web shop, which are driving growth. Just like our muse Molly, we will continue to go our own way. Obviously in a structured way and with costs and liquidity in control.
I am so proud of everyone who is contributing to drive Odd Molly forward.
Anna Attemark, CEO
Please see the full report in the attached PDF file.