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Stockholm, February 16, 2009
Another year of doubled sales and sharply improved profitability
January 1 - December 31, 2008
• Net sales increased by 105 percent to SEK 267.7 million (130.3)
• Gross profit margin rose to 58.3 percent (57.2)
• Operating profit increased to SEK 67.5 million (18.5), corresponding to
an operating margin of 24.8 percent (14.2)
• Net profit was SEK 49.8 million (12.9). Net margin rose to 18.6 percent (9.9)
• Earnings per share amounted to SEK 8.66 (2.39) (based on the average
number of shares)
• In October, Odd Molly reported an order value for spring/summer 2009 of SEK 138 million, up 12 percent compared with the sales result for the corresponding period in 2008
October 1 - December 31, 2008
• Net sales increased by 88 percent to SEK 43.2 million (23.0)
• Gross profit margin was 61.2 percent (59.9)
• Operating profit amounted to SEK 9.6 million (0.6), corresponding to
an operating margin of 20.3 percent (2.6)
• Net profit was SEK 7.8 million (0.1)
• Earnings per share amounted to SEK 1.35 (0.03)
• Decision regarding launch of new product area - skincare
• The Board will propose to the Annual General Meeting a dividend of SEK 3.00 (0.00) per share, corresponding to 35 percent of net profit for the year
Comments from the CEO on trend
A strong end to a fantastic year
We continued to go our own way - and a great deal went our way in 2008. Having closed the fourth quarter, I can say that we more than doubled annual sales and increased profits significantly. Sales rose in all markets and it is clear that the increase in southern European countries was higher than average. However, we must remember that, in terms of profit, we benefitted from an advantageous currency trend.
During the year, we made the decision to open Odd Molly’s first proprietary store, expand our product offering to include glasses and skincare, and to contract Helena Christensen for the first advertising campaign in the company’s six-year history. In 2008, our chief designer, Karin Jimfelt-Ghatan, received the prestigious Guldknappen (Golden Button) design award from Damernas Värld (a Swedish women’s fashion magazine), and Odd Molly was awarded the 2007 Brand of the Year award by the Swedish Trade Federation. The strength of our brand is exemplified by the fact that Odd Molly was the third most searched for term on the Tradera auction website in 2008 (following the words vintage and iPhone).
The fourth quarter was characterized by work on the Odd Molly store, to be officially opened on Saturday, February 14, 2009, and the start-up of the collaboration regarding the new skincare line, which is planned for launch in autumn 2009.
Advancing in the face of adversity
Despite delivering the strongest earnings ever, we are taking an unassuming approach in the face of the turmoil prevailing in most of our markets. We will not be unaffected, but as a feature of Odd Molly’s philosophy - to always choose the road less travelled - we will continue to focus on the future. This is done because we have the ability: we have a competent organization, a strong brand name and we are financially very stable. A strong balance sheet provides us with security and at the same time, the opportunity to take another step in our development in terms of being visible and capturing market share, but also negotiating better prices and terms and conditions. Our strong financial position also provides the Board the opportunity to propose a dividend to shareholders at the Annual General Meeting for the first time in the company’s history.
Always opportunities - always forward
In October, we announced the order value of the 2009 spring and summer collections, which showed that orders received were 12 percent higher than sales of the corresponding collections in the preceding year. In terms of sales growth, which was previously much higher, and the prevailing market turmoil, we are very satisfied with this development - even if we always want more.
We recently commenced selling the 2009 autumn and winter collections, and I have the feeling that agents and customers are receptive to the collection, but it is still far too early to foresee the tendencies of how purchasers will ultimately arrange their budgets and place orders.
In 2009, we will continue to pursue advances by further strengthening the brand, increasing distribution and markets and identifying and developing potentially beneficial partnerships.
Christina Tillman, President
Please find the full report in attached pdf file or contact Christina Tillman, CEO Odd Molly, phone: +46 8-522 28 502 or cellular: +46 733-106000Download pdf