odd molly q4 2016 · 2017-06-28 · •sales agents own salesforce + agents + partners ......

ODD MOLLY Q4 2016Anna Attemark, CEO

Johanna Palm, CFO

1

THIS IS ODD MOLLY

Odd Molly is a lifestyle brand with a distinctive style concept

• Founded in 2002

• Sold in more than 40 markets

• Own stores, webstore and wholesale

• Turnover 2016: 423 MSEK

INTRODUCTION

2016 – ALL TIME HIGH

TURNOVER 2016

(+78 MSEK, + 23%)

MSEK

423MSEK

EBIT 2016

(+12 MSEK, + 97%)

24.5MSEK

-40,0

-20,0

0,0

20,0

40,0

60,0

80,0

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales Operating profit

INTRODUCTION

THE JOURNEY FROM CLOTHES TO CONCEPT

FROM TO

• Design driven Customer focus

• Ladieswear Lifestyle

• Wholesale only Wholesale + own retail

• Sales agents Own salesforce + agents + partners

• Destination stores High footfall locations

• Traditional retail Omni-channel

• Sweden International expansion

CO

LLE

CTI

ON

DIS

TRIB

UTI

ON

INTRODUCTION

CREATING A COMMERCIAL LIFESTYLE BRAND

• Commercial and customer focus at affordable prices to increase commercial relevance

• News & Balance

• Right garment in right time

• Steady news flow to increase in-season sales

• New product groups

• Lifestyle concept to broaden the offering and reach new distribution

• High quality delivered through a conscious process

COLLECTION

…LEADING TO DOUBLE DIGIT GROWTH

• ATH sales in 2016

• New customers

• More loyal customers

• Wider distribution

INTRODUCTION

2016 IN BRIEF

New store in Malmö, Sweden

FEBRUARY

First store in Norway, on Karl Johans gate in Oslo

MAY

Partner-operated store Vail, Colorado, US

JUNE

Partner-operated store in Bratislava, Slovakia

Pop-up store in Jönköping, Sweden

SEPTEMBER

New store in Malmö, Sweden

Shop-in-shop in El Corté Ingles, Lisbon, Portugal

OCTOBER

Partner-operated store in Aspen, Colorado, US

Shop-in-shop in Houston, Texas, US

NOVEMBER

Shop-in-shop in Aruba

DECEMBER

INTRODUCTION

FOURTH QUARTER 2016 – CONTINUED GROWTH

8

Q4 FINANCIALS IN BRIEF

• Total operating revenue SEK 86.5 million (75.8)

• Gross profit margin 60.0 percent (59.6)

• Operating profit SEK -0,3 million (-2.8), Operating margin -0.3 percent (-3.7)

• Net profit SEK 0.8 million (-2.4)

• EPS SEK 0.14 (-0.42)

SALES GROWTH

+14%

+2.5 MSEK

FINANCIALS

GROWTH IN OPERATING PROFIT

2016 FINANCIALS IN BRIEF

• Total operating revenue SEK 423.2 million (345.3)

• Gross profit margin 55.6 percent (55.6)

• Operating profit SEK 24.5 million (12.5), Operating margin 5.8 percent (3.6).

• Net profit SEK 17.7 million (9.8)

• EPS SEK 3.08 (1.70)

• Investments SEK 21.8 million (3.4)

• Suggested dividend SEK 1.00 (1.50)

SALES GROWTH

+23%

GROWTH IN OPERATING PROFIT

+97%

FINANCIALS

WHAT AFFECTS THE GROSS PROFIT?

CURRENCY EFFECTS

–

PURCHASING PRICES

–

PRODUCT MIX

AS THE PROFIT MARGIN INITIALLY

IS LOWER FOR NEW PRODUCTS

–

CHANNEL MIX

AS THE SHARE OF OWN

RETAIL GROWS

+

DISCOUNTS

AS THE MARKET IS INCREASINGLY

DISCOUNT DRIVEN

–

PRICING

AS WE CONSTANTLY

ADJUST AND UPDATE

+

FINANCIALS

QUARTERLY DEVELOPMENT SINCE 2012

0

50 000

100 000

150 000

Q1 Q2 Q3 Q4

Sales by Quarter

2013 2014 2015 2016

-25 000

-15 000

-5 000

5 000

15 000

25 000

Q1 Q2 Q3 Q4

EBIT per quarter

2013 2014 2015 2016

0

100 000

200 000

300 000

400 000

500 000

Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 Q4-16

LTM sales

-40 000

-20 000

0

20 000

40 000

Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 Q4-16

LTM EBIT

FINANCIALS

FINANCIAL TARGETS

ANNUAL AVERAGE GROWTHRATE EXCEEDING 20

PERCENT IN COMING YEARS

OPERATING MARGIN OFOVER 12 PERCENT OVER A

BUSINESS CYCLE

EQUITY/ASSET RATIO AT LEAST 40 PERCENT OVER

TIME

20% 12% 40%

23% 5,8% 55%

20

16

FIG

UR

ES

FINANCIALS

OUR SEGMENTS –RETAIL AND WHOLESALE

RETAIL

• Shops run by Odd Molly

• Stand-alone stores, shopping malls, shop-in-shops in department stores operated by Odd Molly employees

• Sweden, Norway, Finland

• Web shop

• Sale in some 40 countries

SEGMENTS

46%

54%

Sales

Retail Wholesale

72%

28%

Profit

Retail Wholesale

WHOLESALE

• Resellers (shops and web shops)

• Some 30 countries

• Shop-in-shops operated by resellers

• Stores operated by partners

SEGMENTS

46%

54%

Sales

Retail Wholesale

72%

28%

Profit

Retail Wholesale

AN INCREASED SHARE OF RETAIL

Wholesale

2012

LTM as per

Dec 31, 2016

Wholesale

Retail

incl. oddmolly.com

Retail

SEGMENTS

ODDMOLLY.COM – SUCCESS FACTORS

• Prints, patterns, 3D -style concept suitable for e-commerce

• News - continuous updates and collection releases

• Speed - outsourced technical support for speed and agility

• Continuous investments in social media channels to generate traffic and sales

DISTRIBUTION

…LEADING TO SIGNIFICANT SHARE OF SALES

• Fastest growing channel

• High profitability

• 3.6 m visitors per year

• 42 markets

SEGMENTS

SCALABLE STORE CONCEPT

• Odd Molly at our best

• A concept that stands out

• Scalable in various ways

• High footfall locations for increased traffic

SEGMENTS

…LEADING TO INCREASED BRAND AWARENESS

• 17 (13 own + 4 external) stores opened since 2013

• Profitable stores

• Positive effect on oddmolly.com

SEGMENTS

FLEXIBLE BUSINESS MODEL

• Customized set-up by market for international expansion and growth

• Adaption to retail landscape where large resellers increase their share• Own sales force in key

focus markets

• Agents in strategic markets

• Local partners for efficient and scalable roll-out of full concept • Central Europe, US, UK

SEGMENTS

SOLID PLATFORM

COLLECTION STRATEGY –FANTASTIC CUSTOMER

OFFER

FOCUSED EXPANSION –CLEAR CONCEPT THAT IS

SUCCESSFUL IN NEW MARKETS

OMNI-CHANNEL OFFERING – CONCEPT THAT

FITS ALL CHANNELS

THANK YOU!