Odd Molly’s retailers range from small niche stores to well-known department stores in some thirty countries around the world. Retailers are a contracting party to Odd Molly, except where the company in exceptional cases is represented by a distributor. The company’s sales to retailers are referred to as wholesale.
The agent has the exclusive right to sell Odd Molly’s merchandise to external retailers in a geographically defined market. To support their sales work, the agent receives information on current collections and has access to a sample collection as well as marketing material. The agent receives a commission on their sales.
Sales through agents generate low risk, since orders are binding. At the same time the model limits Odd Molly’s opportunities to drive sales to retailers. Odd Molly currently does not have any agents in Scandinavia, where it is responsible for selling to retailers.
The distributor plays largely the same role as an agent, with the big difference being that the distributor buys the merchandise at a discounted price and assumes the risk for inventory and sales. The lower risk that comes with operating in a market through a distributor also means a lower margin and less control at the retail level.
Own sales channels
Odd Molly sells through independent stores, the web shop, outlets and shop-in-shops. In its outlets Odd Molly offers merchandise from previous seasons as well as some sample collections. A shop-in-shop is a limited sales space in a department store, for example, where Odd Molly has its own decor and staff and uses cash-based accounting.
Through its own sales channels, Odd Molly can not only generate revenue but also has greater control over the entire value chain and better opportunities to drive sales based on demand. At the same time Odd Molly assumes the risk in inventory and the costs for its own staff.
Odd Molly gives an outside company the right to drive sales in Odd Molly’s name in a specific geographical area and in agreed sales channels, including Odd Molly stores managed by the partner.
Odd Molly has no proprietary production, instead outsourcing to selected suppliers in Asia and Europe.
Return on equity
Net profit as a percentage of average adjusted equity.
Return on capital employed
Profit after financial items plus interest expenses divided by average capital employed.
Gross profit margin
Net sales less the cost of goods sold in relation to net sales.
Reported shareholders’ equity.
Equity per share
Equity as of the closing date divided by the number of shares at the end of the period.
Profit after financial items as a percentage of total net sales.
Earnings per share
Net profit for the period divided by the weighted average number of shares during the period.
Operating margin (EBIT)
Operating profit divided by total net sales.
Equity / assets ratio
Equity divided by total assets.
Equity plus interest-bearing liabilities. Average calculated by dividing opening and closing capital employed by two.
Profit before tax divided by total net sales.