Our ambition is to provide investors and other stakeholders with relevant information about Odd Molly. Below you will for instance find our financial reports, information regarding the company’s corporate governance and Odd Molly’s business idea, strategy and goal.
Stockholm, April 22, 2010
January 1 - March 31, 2010
• Net sales increased by 10.1 percent to SEK 150.5 million (136.7)
• The gross profit margin increased to 55.6 percent (53.6)
• Operating profit amounted to SEK 31.8 million (33.4), corresponding to an operating margin of 21.1 percent (24.4)
• Net profit amounted to SEK 22.7 million (25.0). The net margin was 15.1 percent (18.3)
• Earnings per share amounted to SEK 3.94 (4.34)
• Odd Molly opened its own store in Los Angeles in February
• In April Odd Molly reported an order value for fall/winter 2010 of SEK 175 million, an increase of 11 percent compared with the order value for the same period of 2009
Comment from the CEO
Sales growth remained stable during the first quarter of the year at about 10 percent. We have said that we will continue to grow while under control, but still be willing to invest, be aggressive and try new things, which I feel is reflected in our first-quarter results. Operating expenses were slightly higher than the same quarter of 2009, as planned, owing to our investments. Nevertheless, the operating margin was still a strong 21 percent. At the same time the gross profit margin rose during the first quarter, largely thanks to a stronger Swedish krona and because forward exchange contracts provide greater stability in terms of the impact on gross profit. As a share of sales, inventories trended positively and were lower than the previous year. Spring merchandise and the large share of the summer collection were invoiced during the quarter, which means that the second quarter will be weak, as in previous years.
In February Odd Molly’s new store in Los Angeles celebrated its grand opening with members of the international fashion elite in attendance. The event attracted a great deal of interest, especially in the U.S. We have made some adjustments to our organization and network, which we feel will help us in the U.S. market in time.
In April Odd Molly reported an order value for fall/winter 2010 of SEK 175 million, which represents an increase of 11 percent compared with the same collections in 2009. We are pleased that we continued to raise our fall and winter sales despite tough economic conditions in some markets, but our order backlog still does not meet our expectations. Based on orders from retailers, the fall and winter collections have been well received, but we have to - and will - reassess our price mix.
Odd Molly is maintaining a high level of activity and creativity. Looking immediately ahead, we are opening our third concept store, this time in Copenhagen, an outlet in Kungsbacka, launching our first menswear collection through retailers, and will soon finish the design of the spring and summer 2011 collections. Before the year is out we also expect the company’s share to be listed on NASDAQ OMX Stockholm, which we anticipate will mark the start of an exciting new chapter in Odd Molly’s history. We will continue to go our own way, value creativity and improve the company’s quality work at every level - with an eye on continuous improvements.
Christina Tillman, President and CEO
Please find the full report in the attached pdf-fileDownload pdf