Overview

  • Denmark luxury audio maker's Q4 revenue fell 3.8% yr/yr due to weak Beosound Premiere sales and macroeconomic headwinds

  • Q4 gross margin rose to 58.7%, a record high for the company

  • Company simplifies organisation and implements efficiency measures, reducing its cost base

Outlook

  • B&O sees 2026/27 revenue growth in local currencies between 1% and 5%

  • Company expects 2026/27 EBIT margin before special items of 1% to 3%

  • B&O forecasts 2026/27 free cash flow of DKK 25m to DKK 100m

Result Drivers

  • WEAK BEOSOUND PREMIERE SALES - Co said significantly lower-than-expected sales of Beosound Premiere soundbar weighed on revenue

  • RECORD GROSS MARGIN - Gross margin rose to a record 58.7% in Q4, which co attributed to improvements in retail network, operating model and efficiency measures

  • WIN CITY GROWTH - Win City concept reported 20% yr/yr sell-out growth in Q4, helping offset some revenue pressure

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

DKK 654 mln

DKK 684 mln (1 Analyst)

Q4 Gross Margin

58.70%

Q4 Adjusted EBIT

DKK 37 mln

Q4 Adjusted EBIT Margin

5.70%

Q4 Free Cash Flow

DKK 5 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the household electronics peer group is "buy"

  • Wall Street's median 12-month price target for Bang & Olufsen A/S is DKK10.00, about 8.5% above its July 1 closing price of DKK9.22

  • The stock recently traded at 231 times the next 12-month earnings vs. a P/E of 148 three months ago

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