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Stockholm, February 19, 2010
Further sales increase with good profitability
January 1 - December 31, 2009
• Net sales increased by 23 percent to SEK 329.8 million (267.7)
• The gross profit margin was 54.0 percent (58.4)
• Operating profit amounted to SEK 59.2 million (67.5), corresponding to an operating margin of 17.9 percent (25.2)
• Net profit amounted to SEK 43.0 million (49.8). The net margin was 13.1 percent (18.6)
• Earnings per share amounted to SEK 7.48 (8.66)
• Odd Molly decided to open its own stores in Los Angeles and Copenhagen in spring 2010
• Decision to introduce new menswear collection, post fire dew. The collection will be launched by external retailers in eight countries in fall 2010
October 1 - December 31, 2009
• Net sales increased by 24 percent to SEK 53.5 million (43.2)
• The gross profit margin was 53.1 percent (61.2)
• Operating profit amounted to SEK 5.0 million (9.6), corresponding to an operating margin of 9.4 percent (22.2)
• Net profit amounted to SEK 2.7 million (7.8)
• Earnings per share amounted to SEK 0.47 (1.35)
• The Board of Directors will propose to the Annual General Meeting a dividend of SEK 3.50 (3.00) per share, corresponding to 46.7 (34.7) percent of net profit for the year
• In October Odd Molly reported an order value for spring/summer 2010 of SEK 180 million, an increase of 25 percent compared with the same collections in 2009
• The Board of Directors of Odd Molly has decided to apply to list the company’s share on NASDAQ OMX Stockholm in 2010
Comment from the CEO
Continued positive development and strong earnings thanks to aggressive measures and good cost controls
2009 was a really good year considering the tough conditions outside the company, coupled with Odd Molly’s aggressive investments in the future. Our first store opened in February, and for the first time since Odd Molly was founded we advertised in the fashion press - with supermodel Helena Christensen. The fourth quarter developed in line with expectations and we closed the year with a sales increase of 23 percent to about SEK 330 million and an operating margin of nearly 18 percent. During the fourth quarter 2009 we had other operating income of SEK 1.1 million, against SEK 4.1 million (consisting largely of net exchange rate gains) in the same quarter of 2008. We would have liked a higher gross margin, but it ended up lower than the previous year mainly due to exchange rate effects. Odd Molly maintains a very strong financial position.
During the fourth quarter we decided to open our third Odd Molly store - this time in Copenhagen. We will also be running the Danish store, located centrally on Sværtegade, ourselves. The opening is scheduled for the first quarter of 2010. That is when we are also opening our store on Robertson Boulevard in Los Angeles, which we are busy readying for the grand opening.
The order value for the spring/summer collections 2010 was announced in October and amounted to just over SEK 180 million, compared with less than SEK 145 million for the corresponding collections last year, an increase of about 25 percent.
Odd Molly continuously monitors how its brand is represented around the world. We have made improvements in the U.S. by creating a more sales-oriented organization, contracting a new agent and hiring a PR firm with extensive experience in the fashion industry on both coasts. Odd Molly also has a new agent in Greece and new distributors in China, North Africa and the Middle East.
The fall/winter collections 2010 were recently shown and orders are being taken. It is still too early to say anything about the results, but I do not see any significant deviations from our expectations. Our new menswear collection, "post fire dew," was shown for the first time to sales agents from eight countries and orders are being taken. It has been a good start for a totally new brand.
Right now we are busy with sales work and fashion shows for the upcoming fall and winter collections for both women and men, as well as our licensed products. At the same time we are working on preparations for changing our stock listing in 2010. As part of this effort, we are transitioning to IFRS reporting. This report has been prepared in accordance with the new accounting principles and in our case primarily means that the effects of currency hedges are treated differently than before.
In 2010 we will continue to encourage creativity in our products and marketing, further develop strategies for growth and work in a structured manner to ensure consistently high quality and continuous efficiency improvements.
Christina Tillman, President and CEO
Please see attached pdf document for the full length interim report.Download pdf