By Dominic Chopping
Bang & Olufsen lowered its financial expectations and pulled midterm guidance as sales of a new product disappointed, while intensified geopolitical tension and economic uncertainty are expected to affect the remainder of the financial year.
The Danish consumer-electronics company said late Monday that revenue in its fiscal third quarter missed expectations after the significantly lower-than-anticipated sales performance of its Beosound Premiere soundbar.
Revenue for the period totaled 621 million Danish kroner ($96.5 million), down 1.7% on year and below the 668 million kroner expected in a FactSet poll.
Adjusted earnings before interest and taxes landed at 12 million kroner versus the 22 million kroner expected, resulting in a margin of 1.9%.
As a result, revenue growth in local currencies for the fiscal full year is now expected at between flat and a 3% decline, while free cash flow is expected at between negative 150 million and negative 200 million kroner. The EBIT margin before special items guidance is narrowed to between minus 1% and minus 3%.
Previously, revenue growth was seen at 1% to 5%, free cash flow at minus 50 million to minus 100 million kroner, with a margin at between 1% and minus 3%.
It cautioned that the outlook is subject to uncertainty related to consumer sentiment, in addition to geopolitical and economic uncertainty including risks from armed conflicts and global trade conflicts.
The company is searching for a new chief executive after Kristian Tear stepped down in January and the company said Monday that its search is progressing as planned, with an announcement to appoint a permanent successor expected in the coming months.
"Our commercial operating model, specifically the coordination between marketing investments, retail execution and product launches, requires strengthening," Chairman Juha Christensen said.
"This is the process we initiated in January, and it is not only a near-term priority; it is key to unlocking Bang & Olufsen's full potential over the medium and long term."
The company will release its full fiscal nine-month business statement on April 16.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 24, 2026 03:12 ET (07:12 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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