COPENHAGEN, Dec 16 (Reuters) - Shares in luxury TV and stereo maker Bang & Olufsen soared as much as 30% on Wednesday after the Danish company said higher demand for home entertainment products had lifted sales above expectations during the pandemic.
B&O, known for its TVs and speakers that can sell for up to $90,000, said sales in the financial year that started on June 1 had risen 10% to 1.16 billion Danish crowns ($190 million).
Better-than-expected sales were driven by “strong strategy execution, seven successful product launches, and higher consumer demand for home entertainment products,” the company said in a statement late on Tuesday.
B&O had reported its lowest annual sales figures in 27 years in July and had been struggling with declining demand long before the coronavirus outbreak.
The company has benefited from a revamped strategy to try to boost its online presence and digital sales with a focus on key European and Asian markets, along with consumers’ spending habits shifting towards home investments during the pandemic.
B&O said launches of its new $7,000 Beovision Contour TV and a $12,000 new edition of its classic Beogram record player helped to lift sales.
It also raised its full-year outlook for earnings before interest and taxation (EBIT) before special items to between negative 50 million crowns and plus 25 million, compared with its previous guidance of 100 million crowns in the red. ($1 = 6.0980 Danish crowns) (Reporting by Tim Barsoe; Editing by Jacob Gronholt-Pedersen and Keith Weir)