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.

“The positive trend seen in June has been reinforced by activity in July and August, with sales looking promising following key product launches. While there is still a lot of uncertainty as too how the global pandemic will play out and it’s effect on the remainder of the year, Zound is in good position to bounce back”, said Martin Axhamre.

Zound recently announced the appointment of Jeremy de Maillard as new CEO, starting in October.

For more information, please contact
Gustav Dahlgren, Head of Communications, Zound Industries
gustav.dahlgren@zoundindustries.com | +46 704 96 93 13

About Zound Industries International AB
Zound Industries designs and develops speakers and headphones under the brand names adidas, Marshall and Urbanears. With a strong focus on innovative technology and user-centered design, Zound has launched a wide range of iconic, award-winning products. Zound currently has around 250 employees, with offices in Stockholm, New York, London, Paris, Shenzhen and Hong Kong. In 2019 turnover reached about SEK 2.0 billion.