Bang & Olufsen Posts Worst Slump on Record as Retail Revamp Lags
- Distribution mishaps wiped out potential for sales growth
- Luxury hifi maker has been struggling to keep up with tech
Photographer: Chris Ratcliffe/Bloomberg
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Bang & Olufsen A/S lost almost one-third of its market value after the Danish maker of luxury TVs and stereos warned sales won’t grow this year because of distribution snafus.
The shares sank as much as 32 percent, the most on record. That shrank the company’s value to 4.2 billion Danish kroner ($650 million), heaping pressure on Chief Executive Officer Henrik Clausen. The hi-fi maker is worth a quarter of the value at its peak in 2006.