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Odd Molly International AB (publ)
Stockholm, Sweden, February 17, 2012
Tough year - strategic focus has begun
January 1 - December 31, 2011
October 1 - December 31, 2011
Events during the report period
Fantastic potential, but it will take time
2011 was a year that reflected the tough market situation Odd Molly finds itself in. Net sales amounted to SEK 292 million, compared with SEK 356 million in the previous year, and were in line with the announced order values. The gross margin remained stable at a high level. Operating profit for the full-year was SEK 20 million and was charged with expenses of about SEK 7 million to shut the store in the US and discontinue the men’s collection.
After just over a month with the company, it is too early for me to offer any concrete plans on the steps the company will take going forward. Right now I am focusing on understanding the business, its opportunities and challenges, who Odd Molly’s customers are, and which costs create value. My job is to turn sales around and create growth, so this is what I see right now:
A good starting point
During its ten years on the market Odd Molly has maintained a fantastic sales trend and built a strong brand. After investing to broaden its product range, the company decided last fall to refocus on the core business.
The trend will be reversed
Several seasons of declining orders pose a challenge. The trend must be turned around, and my experience tells me that the most important way to regain sales momentum is to start with the customer and create a better balance in the collections.
Odd Molly has fantastic potential thanks to its excellent products, strong brand and skilled people. The brand is carried by a large number of retailers, and we have begun to take control over sales in our own stores, shop-in-shops and online.
In terms of 2012, I can report that the sales trend has been negative, the market tough and the order value for the first half-year significantly lower than the previous year. We are looking at how we can optimize inventory and analyze all our costs. Obviously, we are also working intensely to sell the fall and winter collection, which will determine Odd Molly’s revenue for the second half of the year, as well as planning future collections.
My job is to create long-term, profitable growth, and I am very optimistic. But it is not going to happen overnight.
CEO of Odd MollyDownload pdf