Premium audio brand Bang & Olufsen (B&O) has said that logistics has affected the company's overseas fulfilment operations, in particular EMEA, at the backend of the year.
Challenges related to the onboarding of a new logistics service partner meant delays in fulfilling customer orders, which has impacted sales in EMEA and Americas, especially in November.
“We have the right strategy in place and are progressing well on our key strategic initiatives. A focus area is the transformation of our sales and distribution network, which is necessary to strengthen the customer experience and ensure future growth,” said CEO Henrik Clausen.
“However, there is a time-lag effect as we close down a number of existing points-of-sale and establish new ones, which has impacted sales. Adding to that, issues with our new logistics partner meant delays in fulfilling customer orders in November. Therefore, we have adjusted outlook for revenue growth, while outlook for EBIT margin and free cash flow is unchanged.”
B&O also announced that it has decided to adjust the company’s financial guidance for 2018/19.
Based on preliminary sales numbers for the second quarter 2018/19, where revenue is expected to decline by approximately 9% compared to same quarter last year, as well as a slower than expected start to the third quarter 2018/19, B&O now expects revenue for the financial year 2018/19 at the same level as 2017/18 (revenue was previously expected to grow above 10%).
