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Odd Molly International AB (publ)
Stockholm, Sweden, September 25, 2012
The value of orders placed for Odd Molly’s spring and summer 2013 collection amounts to approximately SEK 95 million. This is higher than the last fall/winter collection and stops a decline compared with the corresponding collection last year. The changes to the collection have received a positive response from the company's retailers and have led to higher average orders and more units per customer, which is in line with the company’s updated strategy and demonstrates that these measures are producing results. At the same time the order value reflects the continued cautiousness among many buyers and customers in Europe due to the weak economy and sluggish demand.
The current changes being made to strengthen the collection and sales have led to higher average orders per customer and a lower average price per unit, fully in line with the company’s strategy to attain profitable long-term growth.
"We are proud of the collection and that we have succeeded in slowing an accelerating decline in orders. The success of our new product and pricing strategy is evident in higher average order values and lower average prices. The order value for spring/summer 2013 is better than the previous collection for the first time in three years, but we are still not pleased. We see glints of light that confirm we are doing the right things, but it takes time to reverse a negative trend, and a lot of hard work still remains," says Anna Attemark, CEO of Odd Molly.
The order value for the spring and summer 2013 collection amounts to approximately SEK 95 million, compared with an order value of about SEK 87 million for last fall and winter collection and SEK 114 million for the spring and summer 2012 collection. Adjusted for negative currency effects, the order value amounts to about SEK 98 million. The order value includes a pre-spring shipment of about SEK 23 million, which is scheduled to be shipped during the fourth quarter of this year. The corresponding pre-spring collection last year amounted to SEK 16 million.
"The order value reflects continued cautiousness, but there are also markets showing positive signs. In Sweden, our largest customers are growing the most, which is the result of targeted sales to strategic customers in key markets. I would also mention England as an example of a market that has succeeded in increasing its total sales," says Anna Attemark, CEO of Odd Molly.
The total order value for the current financial year is estimated at SEK 207 million, compared with sales of SEK 292 million in 2011. The forecast that net profit for the year will be significantly lower than last year remains unchanged.
The order value includes orders from external retailers in 25 countries as well as orders from the company’s own stores in Stockholm and Copenhagen. In 21 countries Odd Molly is represented by agents or distributors. Odd Molly’s six largest markets account for 82 percent of the order value.
After the order deadline, Odd Molly produces only enough of the upcoming collection to fill confirmed orders from external retailers and orders from Group-owned stores based on estimated sales volume, which reduces operational risk and tied-up capital. The remaining uncertainty regarding final sales is partly due to future exchange rates and partly to the solvency of individual retailers. These factors will continue to receive close attention.Download pdf