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Odd Molly International AB (publ)
Stockholm, October 8, 2009
Odd Molly’s final sales of its spring and summer 2010 collections show continued favorable growth. The orders placed for spring/summer 2010 amounted to slightly more than SEK 180 million, up 25 percent compared with an order value of nearly SEK 145 million for the corresponding collections in the preceding year.
Sales of Odd Molly’s spring and summer 2010 collections generated a continued increase in the company’s order levels, thus indicating that there is considerable interest in Odd Molly’s brand and designs worldwide. The order value for spring/summer 2010 amounted to slightly more than SEK 180 million, compared with an order value of nearly SEK 145 million for the corresponding collections in the preceding year. This includes orders for early spring merchandise, which will be delivered and invoiced in the fourth quarter of 2009, totaling approximately SEK 17 million, compared with slightly more than SEK 6 million in the year-earlier period, when corresponding early orders were delivered for the first time. This shows that the company’s decision to offer an extra delivery of spring merchandise before Christmas has been highly successful and this approach will be further developed in the future.
"We are extremely pleased and proud to have continued reporting substantial sales increases. For us, this is a sign that taking offensive action during difficult times is the right course of action if a company has strong collections, proven good salesthrough and a well-conceived marketing strategy. We have also seen proof that our decision to offer more deliveries during the year has been successful. Now, we are focusing on opening our next company-owned store, this time in the US, where one store will be launched on Robertson Boulevard in Los Angeles in the spring, followed by a menswear collection in autumn 2010," says Christina Tillman, CEO of Odd Molly.
Broadened product offering in established and new channels
Odd Molly’s final sales also included a bed linen collection designed by Helena Christensen to benefit the victims of Chernobyl. The bed linen collection is sold to Odd Molly’s regular retailers, selected home furnishings stores and through Odd Molly’s website.
The company’s total order value includes orders to company-owned stores in Sweden and Los Angeles. The order value also includes sunglasses sold for the first time to Odd Molly’s existing retailers, as well as Odd Molly’s skin care series developed in cooperation with CCS, which was marketed for the second season. To date, these new channels and offerings account for only a small percentage of the total order value.
Different trends in different markets
In general, Odd Molly’s trends are positive, but differ among the company’s markets. Odd Molly’s largest market, Sweden, continues to report strong growth, despite the company’s decision not to take on any new retailers and to terminate a number of partnerships. Fewer retailers and a higher order value meant that the average order actually increased.
Other markets reporting strong growth included Switzerland, the UK and Belgium, all of which increased their respective order values by about 50 percent compared with the corresponding collections in the preceding year. Other countries, such as Germany, Austria, Finland, Norway and Portugal, reported continued positive trends. At the same time, Odd Molly’s six largest markets account for 76 percent of the order value for spring/summer 2010.
Odd Molly plans to continue growing by increasing its sales in existing and new markets. The company will maintain its focus on developing marketing activities in the US, where potential is deemed to be extensive but sales have been weaker than expected. A number of measures have been taken to increase market penetration and strengthen the brand in the US market, including Odd Molly’s investment in a company-owned store in Los Angeles, which will open in the spring and be expanded to feature a local on-site sales and marketing manager. Other markets experiencing a weaker sales trend include Greece, Denmark and Italy.
Order value for spring and summer 2010 collections per country (including pre-spring) and order value for corresponding collections in 2009
After the order deadline, Odd Molly will produce the upcoming collection to fill confirmed orders from retailers and orders based on the expected sales volumes of company-owned stores, thereby minimizing inventory and risk. The remaining uncertainty regarding final sales is primarily attributable to future exchange-rate fluctuations and the solvency of individual retailers. The company will continue to devote careful consideration and follow-up to these factors.
For further information, please contact:
Christina Tillman, CEO of Odd Molly, phone: +46-8-522 28 502 or mobile: +46-733-10 60 00
Odd Molly International AB is obligated to publish the information in this press release in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was provided for public release on October 8, 2009 at 8:00 a.m. CET.Download pdf