Bang & Olufsen (BO) Q1 26/27 earnings summary

Executive summary

• New executive leadership team established, including CEO Gianfilippo Testa and CCO/Deputy CEO Jesper Hessel, to drive the next phase of strategy.

• Opened flagship stores in Singapore and Palo Alto, and launched Beosystem 3000c Dune Grey edition.

• John Legend appointed as Global Brand Ambassador under a two-year partnership.

• Strategy is delivering progress in branded channels and Win Cities, with double-digit sell-out growth and improved gross margin.

• Store footprint and client experience are key focus areas for further productivity and consistent brand execution.

Financial highlights

• Revenue grew 2.2% in local currencies (2.5% reported) to DKK 530 million, driven by 11.5% growth in APAC; EMEA and Americas declined.

• Record-high gross margin of 59.4%, up 0.7 percentage points year-over-year, driven by product mix and higher licensed income.

• EBIT margin before special items improved to –4.3% from –5.2% last year; special items were immaterial.

• Free cash flow positive at DKK 6 million, a DKK 141 million improvement year-over-year.

• Capex investments at DKK 54 million for the quarter.

Outlook and guidance

• FY 2026/27 guidance maintained: revenue growth in local currencies expected at 1%-5%; EBIT margin before special items at 1%-3%; free cash flow of DKK 25–100 million.

• CapEx projected at DKK 270–310 million, mainly for retail and product development.

• Year expected to be back-end loaded with three or more product launches, most in Q4.

• Memory chip supply constraints persist, with a net gross margin impact of ~0.5 percentage point and cash impact of DKK 45 million included in outlook.