COPENHAGEN (Reuters) - Danish TV and stereo maker Bang & Olufsen cut its outlook for a third time in less than seven months late on Monday as it sold fewer TVs in Europe than expected.
B&O now expect full-year revenue to drop 13-14% in its 2018-2019 financial year. This follows warnings in March and December from an initial outlook for 10% growth.
It cut its EBIT margin forecast to 2-3% against a previous forecast of 4-5%.
"Clearly our financial performance this year has not been satisfactory, and we are very disappointed with the development," Chief Executive Henrik Clausen said.
He added that the company expects profitable growth in the 2019-2020 financial year.
B&O's share price is down nearly 65% over the past year and could take another hit on Tuesday, according to Nordnet analyst Per Hansen.
"Investors' patience came to an end a long time ago," Hansen said in a research note.
The company, which was founded in 1925 and built its initial success on innovative audio technology, is in the midst of a turnaround that aims to cut its distribution network, leaving it with fewer selling points.
B&O's biggest shareholder is Chinese investor Qi Jianhong, who owns just under 15 percent in the company through his Sparkle Roll companies, Refinitiv data showed. In April 2016, Bang & Olufsen rejected a takeover bid by Sparkle Roll.
(Reporting by Stine Jacobsen; editing by Jason Neely)
