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Odd Molly International AB (publ)
Stockholm, Sweden, April 26, 2012
The quarter was in line with plan, development work for long-term improvements is under way
January 1 - March 31, 2012
Events during the reporting period
Comment from the CEO
We closed the first quarter with sales in line with our previously announced order value. The gross margin was stable at over 55 percent for the quarter, while operating profit was lower primarily as a result of decreased volume. To help retailers boost their sales, Odd Molly tries to deliver as much of the summer collection as possible during the first quarter. The supply chain has worked very well, and with essentially our entire spring and summer collection shipped and invoiced during the first quarter revenues will, seasonally, come out much lower during the second quarter of the year. Consequently, our result for the second quarter will be negative, which is worth repeating for those who are unfamiliar with Odd Molly’s business model.
During the quarter we announced the order value for Odd Molly’s fall and winter 2012 collection, which was about SEK 87 million, compared with SEK 140 million for the corresponding collection in 2011. We feel that the order situation reflects an imbalance in the collection, where certain product groups were significantly stronger than others, combined with a weak market. Based on known order values for the full-year and the company’s continued growth ambitions, we expect the result for the current year to be significantly below that of 2011.
Naturally we are not pleased with this and are working conscientiously on a daily basis to reverse the trend. We will gradually implement changes, and one step in the right direction was the decision taken last fall to focus on the women's collection. Basically we will improve the composition of the collections and sales processes while carving out a clear position. In this work it is important that we listen to our retailers and customers. Where we can cut costs, we will - with a focus on profitable long-term growth.
We continue to see positive development for Odd Molly’s web shop, which was given a sneak peek last fall. In it we can offer our entire product range to large parts of Europe. During the quarter Odd Molly launched its first shop-in-shop solution in the Rådhuset department store in Uppsala, which can be an interesting and flexible complementary sales channel.
I am more convinced than ever that Odd Molly’s unique design concept is wanted and needed.
CEO of Odd Molly
Please find the full report in the attached pdf-file.Download pdf