Bang & Olufsen has ‘tough’ year

IN a clear sign of a faltering economy, ultra-luxury brand Bang & Olufsen said it is having a “challenging” time in Ireland.

Its four stores reported a “tough” Christmas trading period yesterday but the company is positive about the year ahead.

The electronics brand, whose Irish operation is owned by Dubliner Billy Peat, said trade in Ireland was difficult over the last few months but it is hopeful that in May it will report results on-par with last year in its full-year accounts.

Despite slowing trade, the B&O store in Donnybrook, Dublin is still one of the five busiest B&O retail operations in the world.

A & spokeswoman said its Cork store, which opened in December 2006 and is its biggest store in Ireland, is doing well but added that it will take time to develop.

“People don’t come into our stores and buy items from the shelves. It takes time for them to get to become familiar with our products and this is what is happening at the Cork store,” & she said.

B&O reported a 61% drop in second-quarter profit and lowered its earnings forecast for the current fiscal year.

“Things don’t look good for Bang & Olufsen in the coming months,” Rune Moller, an analyst at Jyske Bank, said.

“There are three main things affecting growth: they’re feeling the downturn in the macroeconomic outlook, they’re delaying the launch of some products, and they’ve opened some new stores, two of which are not doing well.”