Bang & Olufsen reports fall in sales of its stereos and TV sets in Europe
Bang & Olufsen, the maker of luxury stereos and television sets, fell the most in two months in Copenhagen trading after net income missed estimates.
B&O fell as much as 5.6 percent, the most since Nov. 15, after reporting second-quarter net income of 28.8 million kroner ($4.94 million). That compares with an average estimate of 33.5 million kroner in a Bloomberg survey of four analysts. B&O, based in Struer, Denmark, said revenue at its AV unit, which includes its stereos and TV sets, declined 8.6 percent in the second quarter as European sales slumped.
Bang & Olufsen has been failing to keep up with strong competition from Asian brands which have been delivering high end products with improved technical performances. Bang & Olufsen’s positioning as a design technology company has also been losing stance, high end consumers opting more for technology rather than design features when it comes to TV sets.