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Odd Molly International AB (publ)
Stockholm, 9 October 2008
The recently concluded order period for Odd Molly’s spring and summer collections 2009 produced further growth compared with the same period of 2008. Orders for the first half of 2009 exceed SEK 138 million, an increase of 12 percent compared with sales of just under SEK 124 million for the same period a year earlier. Furthermore, additional orders have been placed for slightly over SEK 6 million for delivery by December 2008.
After many seasons of exceptional growth, Odd Molly continues, despite the slowing economy and global concerns, to increase its sales. Odd Molly has received binding orders for the first half of 2009 corresponding to slightly over SEK 138 million. This represents an increase of 12 percent compared with the same period of 2008, when sales of spring and summer merchandise amounted to just under SEK 124 million. Furthermore, Odd Molly has received additional orders for early spring merchandise for delivery by December 2008 worth slightly over SEK 6 million. Purchases for Odd Molly’s first store, which is scheduled to open in Stockholm in February 2009, account for a marginal share of the total order value.
"We are very pleased with the continued growth in key markets such as Sweden, Germany and Europe. In total, order bookings are very good in most of our markets. While we had hoped for more in certain cases, we see it as a sign of strength that our brand continues to grow on a broad front despite current market conditions," says Christina Tillman, CEO of Odd Molly.
Continued growth in most markets
The increase for spring/summer 2009 includes gains in most new and established markets. In total, orders have been received from 36 countries. Sweden continues to grow at the same rate as total sales, despite that Odd Molly has been very restrictive in accepting new retailers there. Instead, growth in Sweden is being generated from higher average sales per customer, which is positive and in line with the company's strategy.
Germany has accelerated significantly and is growing by nearly 40 percent compared with spring /summer 2008, making it our third largest market after Sweden and Norway. This has been achieved thanks to aggressive sales efforts, helped by Odd Molly’s placement on the popular television show "Germany’s Next Top Model." As a result, many new customers have been added, such as Galleries Lafayette in Berlin, Ludwig Beck in Munich and Mäntelhaus Kaiser in Hannover.
Gains are also being made in fashion-conscious countries in southern Europe. Italy, for example, is growing by 55 percent, making it Odd Molly's fifth largest market, and Spain is up 38 percent. The Netherlands is also growing strongly, as are smaller, relatively new markets such as Belgium, Finland and Switzerland - as well as Greece, which doubled its orders for next spring/summer. Odd Molly’s success in expanding the brand to several attractive markets is highly gratifying and points to further growth opportunities.
Greater cautiousness in a couple of markets
On the other hand, a couple of Odd Molly’s markets are performing slightly weaker than expected. U.S. sales decreased by a total of 29 percent compared with the same period of the previous year, after Odd Molly’s largest customer to date, a major apparel chain, extensively changed its purchasing strategy. On the positive side, the order value from other U.S. customers rose by 40 percent compared with the same period of the previous year. At the same time, the growing number of customers in the U.S. is an indication that the brand is making good progress despite difficult market conditions.
Sales also fell in Denmark, where Odd Molly, after previously strong increases, is now well positioned relative to the market’s size. Moreover, Denmark has experienced an economic slowdown which has made some customers more cautious.
Around 1,550 retailers in 36 countries will carry Odd Molly’s spring and summer collections 2009. This is a decrease due entirely to the U.S. and the strategic change by the above-mentioned chain. As a whole, the outlook for the first half of 2009 is generally positive, with higher average orders from established markets and new retailers in many markets, although there is also an undercurrent of cautiousness at the purchasing level in certain markets.
Odd Molly has an extensive network of independent retailers worldwide, which minimizes risk. We are proud to be represented at such leading department stores and chains as Fred Segal in Los Angeles, Lord & Taylor, Galleries Lafayette in Paris and Berlin, NK in Sweden, Isetan in Tokyo, Grieder/Bon Genie in Switzerland and El Corte Inglés in Portugal.
Sales of the spring and summer collections by country in the first half of 2008 and order value for the same period of 2009.
After each order deadline, Odd Molly produces only enough of the coming collection to fill confirmed orders, thereby minimizing inventory and risk. Any remaining uncertainty primarily relates to future exchange rates and the solvency of individual retailers. These factors will continue to receive close attention.
For further information, please contact:
Christina Tillman, CEO 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 9 October 2008 at 8.00 a.m. CET.Download pdf