Zound delivers strong finish to a difficult period
Zound Industries’ net sales decreased by 29 percent to 352 MSEK during the second quarter of 2020 compared to the same period in 2019. The Covid-19 pandemic, which led to closed stores and lower demand for audio products, impacted sales heavily during April and May. With markets reopening and e-commerce sales gaining momentum, Zound delivered a strong recovery with year on year growth in June.
“We got through a couple of really tough months and have had to adapt our business to this new reality. Our performance in June signals the start of a new positive trend for us”, said Martin Axhamre, CFO and acting CEO, Zound Industries.
Sales highlights from the second quarter include double digit growth in Zound’s two biggest markets China and the U.S; 56 and 33 percent respectively. In China, sales are strong both online as well as in stores and in the U.S the expansion with Best Buy, from 300 to 1,000 stores nation wide is showing results. Zound’s inhouse e-commerce increased sales by 84 percent, equivalent to 26 percent of net sales during the quarter, up from 10 percent in 2019.
In product news, in July Zound released its first true wireless products — Urbanear’s Luma and Alby – and Marshall’s Emberton portable speaker, which has become the company’s most successful launch to date.