Bang & Olufsen (BO) Q1 2026 earnings summary

Executive summary

• Achieved record-high gross margin of 58.7% in Q1 2025/26, up from 55.2% year-over-year, despite a 4% revenue decline in local currencies due to monobrand partners reducing inventories.

• Company-owned stores and e-commerce posted double-digit growth, while like-for-like sell-out grew 1% overall and 16% in key win cities.

• Strategic investments continued in retail excellence, marketing, and product development, including the launch of Beo Grace earpieces for the 100th anniversary.

• Strategic execution included new store openings, upgrades, and expansion in key cities, such as the U.S. West Coast, Paris, and Harrods in London.

• Free cash flow and EBIT margin were impacted by ongoing investments and seasonality.

Financial highlights

• Q1 revenue was DKK 517m, down 4% in local currencies compared to last year.

• Gross margin reached a record 58.7%, up from 55.2% year-over-year.

• EBIT margin before special items was -5.2%, down from -3.1% last year.

• Free cash flow was DKK -135m, reflecting investments and seasonality.

• Net available liquidity at DKK 198m at quarter-end.

Outlook and guidance

• Full-year 2025/26 outlook maintained: revenue growth in local currencies expected at 1% to 8%.

• EBIT margin before special items forecasted at -3% to +1%.

• Free cash flow guidance set between DKK -100m and 0.

• Growth initiatives include new store openings, product launches, and continued investment in retail and marketing.

• CAPEX expected at DKK 320-360m; capacity costs to rise by DKK 150m.