January 8, 2019 / 7:52 AM / 8 months ago

TV and stereo maker Bang & Olufsen sticks to strategy as quarterly revenue falls

COPENHAGEN, Jan 8 (Reuters) - Danish luxury TV and stereo maker Bang & Olufsen (B&O) said on Tuesday it was confident in its strategy, despite a drop in sales and logistics problems in the second quarter.

Shares in B&O plummeted on Dec. 20 after the company warned of lower than expected sales in the current financial year.

The gloomy statement was the latest in a string of warnings and negative outlooks from European retailers.

“We are confident that we have the right strategy,” B&O CEO Henrik Clausen said.

The December warning raised doubts about whether B&O would be able to deliver on its targets set out in July last year for revenue to grow more than 10 percent on average over the next three years.

On Tuesday B&O revised that target, saying it expected sales to pick up and grow by 10 percent in the 2019/20 and 2020/21 financial years.

“The progress we are making on our key strategic initiatives will enable us to overcome the short-term challenges and reestablish the growth momentum towards the end of the financial year,” Clausen said in the report.

Reporting by Teis Jensen, editing by Louise Heavens

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