Bang & Olufsen report Q3 loss of US$16 million

Bang & Olufsen, the Danish maker of luxury stereos and television sets reported a third-quarter loss of US$16 million, after store closures and weak demand in Europe.

The company is in the second year of a five-year plan that aims to triple revenue and restore profitability to levels from before the financial crisis by closing stores in Europe and expanding in emerging markets. Third-quarter sales declined to 654.6 million kroner from 766.3 million kroner and the gross margin fell to 34.9 percent from 38.3 percent as capacity costs jumped 27 percent to 343 million kroner.

Bang & Olufsen store Canterbury UK