My view is that B&O as we know it now will be gone for good in 6 to 12 months. This is plainly out of the current financial wave about to hit us all.  (I wrote about this a couple of months ago - before the current "conflict" which is not to blame but certainly an accelerant). B&O will be a brand in name only - like Rolls Royce Motorcars was once and the name sold. A new set of products may emerge under new ownership but it will be detached from its current 95-96 year manufacturing history. Sorry I cannot foresee a better outcome to all.

I'm inclined to agree with Mr 10%. Look at a clothing retailers recent history for comparison. Brooks Bros were, at 200 years old, the oldest prestigious US tailor. They got into financial trouble and were bought out by an Italian gentleman who used high quality Italian fabrics but quietly moved manufacturing to China. There are several Savile Row tailors doing the same. Tastes changed and the demand for suits collapsed. Stores closed. Stock was sold off. Last year you could get a £1500 Brooks Bros suit at Tkmaxx for £75. Covid has wrecked many markets, including formal wear for the office. Is there a relevant comparison for B&O? Financial difficulties, Chinese manufacturing to reduce costs… Both Brooks and B&O have traded on long long established reputations, but you can only do that for so long. And as stated by 10%, there’s a terrible financial wave about to hit…. a wave that will kill all non essential purchases.

So B&O just showed their Q3 result, and even though there is a small loss, they show that they can handle the high extra expense  on freight and components. Here is some parts of the report that I find interesting: As a result of steady progress on strategy execution the company grew revenue by 10% in local currencies in Q3. This was the seventh consecutive quarter with double-digit growth. Earnings for the period were a loss of DKK 16m compared to a profit of DKK 13m last year. Free cash flow was an outflow of DKK 14m (Q3 20/21: inflow of DKK 8m). The year-on-year decline was related to higher component costs and higher CAPEX. Available liquidity was stable at DKK 511m (Q2 21/22: DKK 534m) The two core Asian markets grew by 28% in local currencies. Sell-out was at the same level as last year. Sell-out growth was lower than sell-in in the multibrand and etail channels as the company transitions to new distribution partners. Also, the Chinese New Year began earlier this year, thereby impacting the number of sell-out days in Q3. Americas grew 32% in local currencies, driven by all product categories and distribution channels. Likefor-like sell-out grew by 18%. Year-to-date, the customer base grew by 25%. The company saw a 32% growth in customers owning two or more B&O products, partly driven by retargeting of existing customers The company maintains the outlook for the financial year 2021/22, but due to higher component costs, the company now expects EBIT margin before special items and free cash flow to be in the low end of the range Revenue from speaker sales more than doubled compared to Q3 of last year. This increase was driven by all products, especially Beolab 28, which was launched in Q4 of last year and continued to see strong demand. Revenue from TVs was slightly lower than Q3 of last year. However, last year, the company sourced and sold TV screens supporting the launch of Beovision Contour 48’’. This accounted for around 6% of revenue within the Staged category last year and if this is excluded, TV sales delivered high single-digit growth. Cash flows from investing activities were an outflow of DKK 75m (Q3 20/21: outflow of DKK 55m). Investments were primarily related to the product roadmap and continued development of product platforms. Investments in tangible assets increased following investments in retail development and the company’s aluminium factory. n Q2 2021/22, the building “the Farm” was reclassified to land and buildings under tangible assets because it will be used for own purposes. Model for scale Another critical part of creating business robustness is to build a scalable business model. This means essentially creating a systemic mix of attractive propositions, sold through the right marketing and distribution channel mix, so that the business can grow organically. The company’s Recreated Classics initiative was further expanded with the launch of BeoSystem 72- 22. This system was created exclusively for the US and Canada and only 30 units were made of this limited-edition system which were all sold within the first day Another product programme is the Bespoke programme launched in Q2. Throughout Q3, the company experienced a consistent inflow of product requests without significant marketing activation. The vast majority of bespoke requests year-to-date (95%) were customisations, where customers mix and match existing colours, materials or finishes for a specific product. The remaining 5% were bespoke orders, where products are tailored exclusively to the individual customer. The programme is a deliberate effort to increase relevancy and attractiveness towards specific subsegments of the company’s target audience in the Very High Net Worth Individuals and WellEstablished customer segments In Q3, the company launched a limited-edition Beosound A1 speaker in partnership with the streetwear label and lifestyle brand CLOT. The collaboration was designed to tap into CLOT’s creative movement in bridging Eastern and Western cultures in order to drive awareness and affinity with a younger segment of, particularly, Chinese consumers. The company’s strategic decision to win in London continued to yield strong results. UK performance in the quarter was testament to the positive impact of this approach, with year-on-year revenue growing 11% and sell-out growth reaching 31%. For London specifically, sell-out growth in company owned stores reached 80%, outperforming both the rest of the UK and the EMEA region. In addition, brand awareness, customer base and repurchase increased significantly compared to last year. Brand Partnering activity remains a critical component of the business model as it drives awareness and new customer acquisition. Performance in the quarter grew by 9%, primarily as a result of aluminium sales related to Harman’s addition of the Genesis car brand. The launch of 1+ product innovation in Q4.

I'm afraid that I have to join the rather pessimistic crowd that foresees B&O's end in the near future. I agree with Mr10Percent that the brand name will propably survive in a corporate group or some other ownership, but I can't imagine that this future will be somehow along the long tradition/heritage of B&O as we know it now. Besides the problems related to the global economic crisis the we are facing right now with all its apsects (and I am afraid that it is only the beginning), I think that some bad descisions in the product strategy/developpment (that have been identified and discussed in great length on Beoworld) have added some more nails in B&O's coffin. Personally I think Lee hits a point here: