Bang & Olufsen stocks drop after disappointing China gross sales

STOCKHOLM, March 17 (Reuters) – Stocks in Bang & Olufsen (BO.CO) plummeted 11% on Friday after the Danish audio and video apparatus maker reported a initial running loss for the 3rd quarter and diminished its full-year benefit outlook because of disappointing gross sales in China.

The corporate posted an running loss sooner than particular pieces for the 3rd quarter of 43 million Danish crowns ($6.14 million) between December to February.

The corporate additionally mentioned it now expects EBIT margin sooner than particular pieces for the total monetary yr finishing Might 31 within the vary of -4% to -1%. It had previusly guided it might finish on the decrease finish of -2% to three% vary.

“Gross sales in China didn’t growth as anticipated after the reopening as a result of all of the demanding situations with COVID-19,” Leader Govt Kristian Teär mentioned in a commentary.

“When the rustic unexpectedly deserted lots of the restrictions in December, we didn’t be expecting this detrimental building in shopper behaviour,” he mentioned.

Gross sales in China declined by means of 65% within the 3rd quarter, the corporate mentioned.

B&O mentioned it expects higher marketplace stipulations in China within the fourth quarter, however nonetheless at a slower tempo than first of all anticipated.

Stocks in B&O had been buying and selling 11% decrease by means of 1513 GMT, headed for his or her largest day-to-day decline since December 2019.

($1 = 7.0022 Danish crowns)

Reporting by means of Anna Ringstrom, Enhancing by means of Jacob Gronholt-Pedersen

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