* B&O expects full-year revenue to drop 10 pct in 2018/19
* Warned in Decmber that revenue would be flat for year
* Shares in B&O drop by 20 percent after Monday’s warning
* B&O to discontinue share buyback programme
By Teis Jensen
COPENHAGEN, March 26 (Reuters) - Shares in Bang & Olufsen (B&O) dropped by 20 percent on Tuesday after it issued a second sales warning for the financial year, with some investors saying there was now “a crisis of confidence” in the Danish luxury TV and stereo maker.
B&O said on Monday that it expected full-year revenue to drop around 10 percent in its 2018-2019 financial year. This follows a warning in December when it cut its revenue forecast to flat from 10 percent growth.
“This is not just about earnings figures, this is a real crisis of confidence,” investment economist Per Hansen of Nordnet said as B&O’s share price, which was close to 200 Danish crowns ($30.31) at the beginning of last year, dropped 20 percent to 64.50 crowns per share.
B&O also revealed on Monday that preliminary figures indicate that third quarter sales will drop 18 percent from the same time last year due to weaker TV sales in the EMEA region consisting of Europe, the Middle East and Africa.
The company said it would discontinue its share buyback programme and that it could not maintain its existing three-year targets. It said it would disclose revised three-year targets with its annual report, which is expected in July. ($1 = 6.5993 Danish crowns) (Reporting by Teis Jensen Editing by Alexander Smith)