Bang & Olufsen shares decline following underachieving sales in China

Bang & Olufsen shares decline following underachieving sales in China

The value of Bang & Olufsen's stock dropped by 11% on Friday because the company shared a report revealing its preliminary operating loss for Q3. This Danish business creates audio and video equipment, and due to low sales in China, they have lowered their expected profits for the year.

During the months of December to February, the business incurred an operating loss of 43 million Danish crowns, which is equivalent to $6.14 million, before accounting for any exceptional items.

The business has announced that their anticipated EBIT margin before any special items for the complete fiscal year ending on May 31st will now be between negative-four percent and negative-one percent. They had previously directed that the outcome would be at the lower end of the negative-two percent to positive-three percent variety.

Kristian Teär, the CEO, mentioned in a declaration that the sales procedures in China faced various hurdles due to the COVID-19 pandemic, which resulted in unexpected outcomes after the reopening.

He expressed surprise about the unfavorable shift in consumer conduct when the country abruptly lifted a majority of its limitations last December.

The enterprise has reported a 65% drop in sales during the third quarter in China.

B&O has predicted that there will be improved market conditions in China during the fourth quarter of the year, although this growth will not be as fast as was originally anticipated.

As of 3:13 pm GMT, the stocks of B&O had dropped by 11%, marking their largest decrease in a single day since December 2019.

In this blog section, we will discuss the conversion rate of Danish crowns to US dollars. As of today, $1 is equivalent to 7.0022 Danish crowns. Let's say you are planning a trip to Denmark and want to make sure you have enough money for your expenses. If you have a budget of $1000 USD, you can convert this amount to Danish crowns by multiplying it by the current exchange rate. So, $1000 USD x 7.0022 = 7,002.20 Danish crowns. Similarly, if you are a Danish citizen planning a trip to the United States with a budget of 10,000 Danish crowns, you can convert this to USD by dividing it by the current exchange rate. So, 10,000 DKK / 7.0022 = $1,428.40 USD. It's important to keep track of the exchange rates when traveling or making international transactions to ensure you are getting the best deal and not overspending.

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