Bang & Olufsen hit by a decline in luxury spend

 
City A.M. Reporter
DANISH electronics maker Bang & Olufsen yesterday reported flat quarterly revenue after strong sales of lower-priced products were outweighed by a steep decline at its top-end audio-visual unit.

Sales of its cheaper B&O PLAY range, launched at the start of the year to win new and younger customers, rose 92 per cent, the company said.

B&O’s audio-visual unit, whose 103-inch BeoVision4 TV costs about €100,000, saw revenue slide 20 per cent.

The business contributes over half of group revenue and also outweighed a 37 per cent rise in its automotive business which makes sound systems for luxury cars such as Aston Martin, Audi and Mercedes.

“The crisis in Europe is also hitting Bang & Olufsen, no doubt,” said Alm Brand analyst Michael Jorgensen. “They are feeling the lack of consumer willingness to spend.”

The quarter was also dented by an absence of new product launches, the company said.