Premium European TV brand Loewe is taking over several struggling audio company Bang & Olufsen stores in Europe, including in Denmark where Bang & Olufsen products are designed, as the Danish company struggles to deliver profits in a difficult market.
Loewe, well known for their premium TVs, will be launching a new range of Loewe appliances. The Good Guys, who are returning better average sale prices (ASPs) for Loewe TVs compared to discounted models from Samsung and LG, are competing with Harvey Norman to sell Loewe TVs and appliances.
Loewe’s takeover of Bang & Olufsen stores comes ahead of their move to manufacture their own OLED panels. They are also expected to launch a new range of TVs next year.
In Europe, analysts describe Bang & Olufsen stocks as “best avoided,” with the share price of the premium audio company falling 96% over the past five years. In the past quarter, the stock has fallen 24%, sparking concerns about the sustainability of their Australian stores.
Loewe is 100 years old
The company is also facing challenges in China, which used to be a key market for the Danish brand, as sales have fallen by 65%.
In July 2023, B&O reported an 18% decline in revenue, citing “low demand” from Australia and New Zealand.
Over the past 12 months, the stock has declined by 31%, and the company has failed to make a profit during that period.
In the last five years, Bang & Olufsen has experienced a shrinking revenue. While the broader European share market has gained around 24% in the last year, Bang & Olufsen shareholders have lost 31%.
In Australia, former Bang & Olufsen distributor Aqipa stopped selling the company’s consumer speakers due to poor sales and warranty issues.
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