The manufacturer of Premium stereo systems, Bang & Olufsen (B&O) has lost after a sales warning, almost a third of its market value. The shares in the Danish group plunged on Thursday on the stock exchange in Copenhagen up to 32.1 percent on a 94.90 crowns (12.71 euros) and headed to the biggest one-day loss in ten years. The market capitalisation of the company fell to only 4.2 billion crowns (563 million euros).
B&O, and will produce according to their own statements in the current financial year 2018/19 sales in the amount of the previous year and not – as before – 10 per cent more. “The question is whether this is a one-time effect or whether larger issues are behind it, such as a General weakness in the retail industry,” said Analyst Morten Imsgard from the Danish Sydbank. Also, Ensure would be that the medium-term objectives are not to keep.
B&O had in July, the revenues in the next three fiscal years, to annually, more than 10 percent increase. B&O tag is currently in the midst of a larger Group and relations, among other things, the own stores that the company operates.
The financial news service Bloomberg analyzed that B&O has traditionally been out of the stereo business coming also problems with the changing needs of its customers. The company had launched new products such as wireless Bluetooth speakers on the market, have not shown, however, for example in sales as agile as its competitors.