Bang & Olufsen sounds upbeat after slump: Electronics firm’s boss pledges to revive fortunes after store closures
Bang & Olufsen’s boss has pledged to revive its fortunes after sales and profits plunged.
Profit at the upmarket television and speaker maker more than halved to £7.1million in the year to May, down from £14.7million for the previous 12 months, following problems with distribution and the launch of fewer new products.
Sales also dropped, falling 13.6 per cent to £341million. Henrik Clausen, chief executive, said: ‘It has been a disappointing year.’
Profit at the upmarket television and speaker maker more than halved to £7.1m in the year to May, down from £14.7m for the previous 12 months
He added the next 12 months will be challenging, but the firm hopes to return to growth in the final half.
The Danish group has long focused on the high-end audio market. B&O has been shutting unprofitable stores and opening shops in major cities such as London, New York, Paris, Shanghai and Tokyo in an effort to boost sales.
Clausen added: ‘We have had stores which have not necessarily been located in the right places.
‘It’s fine to be in France but if you aren’t in Paris and if you don’t have a location which is relevant to where your customers are, you don’t execute precisely on your brand or sales.’