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Net sales of fashion company Odd Molly in the third quarter, from July to September, declined 26% to 99.5 million (134.5). According to the report, warm weather and reduced sales to retailers negatively affected the company's sales.
Read also: Slower for Odd Molly
The gross profit margin was 51.0% (53.0).Operating profit amounted to -19.3 million SEK (6.6). Profit after tax is high at -15.7 million SEK (4.9).
The company's sales to consumers decreased 11% to 52.5 million SEK (58.9%). Revenues from wholesale activities decreased by 38% over the previous year and amounted to SEK 46.9 million (75.6) in the third quarter.
From now on, a program of measures will minimize the operating costs which will decrease by 50 million SEK on an annual basis. The effects will be visible in 2019. Program restructuring costs of SEK 5.8 million were earmarked during the quarter.
The number of self-owned stores will increase from 17 to 6 and negotiations continue with staff and owners.
Read also: Winning stage for Odd Molly
The focus should instead be on increasing sales in e-commerce and investing in selected markets. In August, the store was closed in Åhléns in Gothenburg, then in Humlegårdsgatan and Bromma Blocks, at the end of the year and in March of next year. The contract for the Asecs store in Jönköping will expire soon and instead, a local partner shop-in-shop will open.
In October, an agreement was signed with an operator in Portugal and Spain, which, under a licensing model, takes over sales to retailers in the markets and operates an existing store in El Corte Inglès, Lisbon .
In several markets, the company will change its license model in the same way and intends to develop through local partners.
The range also decreases in width. In the report, the company writes that " is continually working to sell older stocks and optimize purchases to keep inventory levels low. The new assortment strategy, comprising minor major collections and more specialized collections, implemented last year also helped to reduce inventory levels. "
Inventories amounted to SEK 77.4 million at the end of the period, compared with SEK 80.2 million at the end of the third quarter of 2017.
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