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So I was looking through the B&O webshop,
Almost every product have at least one colour that is sold out.
With my investor eyes this is double sided.
Clearly they have sold much more than expected
But also they have clearly not forcasted well enough, and can miss sales because of it?
What do you guys think?
Problems getting components will also cause shortages.
It’s corona times....no wonder they can’t get what they want/need and as fast as they want it.
MM
Location: Flensborg————Danmark
Super interesting post Emil.
I expect its multiple factors. Last month, the business raised its revenue expectation off the back of stronger than forecast sales. Anecdotally, in mid-December I went into Selfridges in London to see the Contour irl and I was told it's pretty much sold out until February/March this year, so this would reflect that updated forecast. I was told that the London concessions (now back in company hands) generate some of the highest sales volumes for the business, which is also worth considering.
I also expect ongoing supply chain disruption to impact availability, whether that's down to components for assembly or finished goods in shops ready for sale given how complex and global in nature supply chains are. I'd posit that it might not be easy for the business to scale production quickly given this disruption (to be fair, I don't know how the business approaches this compared to peers, but it would be super interesting to know, especially as so many products are now being manufactured off-shore, ex-Europe).
But I think at least for the time being, it's a nice problem for B&O to have if they can expertly manage demand in a constrained supply environment.
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