Core Viewpoint - Bang & Olufsen's preliminary Q3 2025/26 revenue shows a slight year-on-year increase, but the overall outlook for FY 2025/26 has been adjusted downwards due to lower-than-expected sales and external economic factors [1][2][3]. Financial Performance - Q3 2025/26 reported revenue is DKK 621 million, reflecting a 1% year-on-year increase in local currencies [1]. - For the first nine months of 2025/26, reported revenue is DKK 1,814 million, indicating a 1% decline in local currencies [1]. - The gross margin improved by over three percentage points in the first nine months, reaching 57.5% [6]. - EBIT before special items for Q3 is DKK 12 million, with an EBIT margin of 1.9% [6]. - Free cash flow for Q3 is DKK 22 million, while for the first nine months, it is DKK -146 million [6]. Adjusted Outlook - The revenue growth forecast for FY 2025/26 is now expected to be between -3% and 0%, down from the previous estimate of 1% to 5% [3]. - Free cash flow is now projected to be between DKK -200 million and DKK -150 million, revised from DKK -100 million to DKK -50 million [3]. - The EBIT margin before special items outlook is narrowed to between -3% and -1% [3]. Strategic Direction - The company has withdrawn its previously communicated mid-term financial ambitions through 2027/28 but maintains its long-term goal of becoming a leading global luxury audio brand [4]. - The interim CEO emphasizes the need for improved commercial discipline and execution to enhance market readiness for new products [5]. - A search for a permanent CEO is ongoing, with an announcement expected in the coming months [5]. Cost Management and Capital Expenditure - CAPEX is now expected to be around DKK 280 million to DKK 300 million, down from a previous estimate of DKK 320 million to DKK 360 million [7]. - Capacity costs are anticipated to increase by around DKK 100 million from 2024/25, revised from a previous estimate of around DKK 150 million [7].

Core Insights - The company reported a 4% decline in revenue in local currencies, attributed to lower sell-in as monobrand partners reduced inventories, despite achieving double-digit growth in company-owned stores and e-commerce [1][2] - The strategic transition is ongoing, focusing on investments in retail excellence, marketing, and product development to drive future growth [1][2] Financial Performance - Reported revenue decreased by 5.0% year-on-year to DKK 517 million, with a 4% decline in local currencies [6] - Gross profit increased to DKK 304 million, with a gross margin improvement of 3.5 percentage points to 58.7% [6] - EBITDA before special items was DKK 27 million, reflecting a margin of 6.5%, down from 7.1% [6] - EBIT before special items was DKK -27 million, with an EBIT margin of -5.2% [6] - Free cash flow was negative at DKK -135 million [6] Product Launch - The introduction of the new earpieces, Beo Grace, marks the beginning of celebrations for Bang & Olufsen's 100th anniversary, emphasizing the brand's commitment to beautiful sound and craftsmanship [3] Outlook - The financial outlook for FY 2025/26 has been maintained, with further details available in the Annual Report 2024/25 [4]