Crisis deepens at Bang & Olufsen with closure of 125 stores
Danish based highend hi-fi maker Bang & Olufsen reported on Wednesday a 47% plunge in its second-quarter net profit and announced the closure of 125 stores.
Between September and November, the company earned a net profit of 2.06 million euros, sharply down from the same three months a year ago.The Danish manufacturer also said it intended to close about 125 of its 637 stores within the next 18 months, mainly in Europe owing to under-performance.
Thanks to the company’s recent launch of new products, such as the BeoVision 11 television, quarterly sales jumped by 5.0 percent year-on-year, rising to 110 million euro. Bang & Olufsen has been facing criticism over slow introduction of updated models and lagging behind both from a technology point of view. B&O also said it will pursue expansion plans in Brazil, Russia, India and China.
Bang & Olufsen BEO 11 Tv