Bang & Olfusen Forecast Turns Dim
Another purveyor of luxury goods seems to be in trouble. Bang & Olufsen has forecast lower profit and sales for the year for the third time. The Denmark-based company has said that they have seen less of a demand for luxury consumer electronics and they are also facing legal disputes. Bloomberg reports that shares have lost almost two-thirds of its value this year.
Bang & Olufsen is in a tricky spot because their products often cost more double or triple what a similar products would cost from another manufacturer. While Bang & Olfusen products often have really fantastic design and a distinctive look in an economic crunch that might not be be enough to keep customers shopping. Analysts say that Bang & Olufsen may have to find a partner for their electronics business as technology increases and if profits continue to fall. Bang & Olufsen is scheduled to release fiscal 2008 earnings in August and hopes that profit will improve. I'm certainly pulling for them. They've had a few design clunkers over the years (I think their Serene cell phone is a bit of a miss) and their products may be overpriced at times but no other company produces consumer electronics that are quite as distinctive.