(Bloomberg) -- Bang & Olufsen A/S, the Danish company that makes luxury TVs and stereos, lost more than a quarter of its market value in the first few moments of trading in Copenhagen, after cutting its revenue outlook.

The shares sank 26 percent shortly after the market opened, wiping $180 million off its value.

“B&O chose the ‘wrong’ day to cut its forecast, in the sense that investors may punish the stock extra severely” given the overall market sentiment, Per Hansen, an investment economist at Nordnet, said in a note.

B&O says revenue will basically stagnate in the full year, compared with an earlier forecast for growth of more than 10 percent, according to a statement sent late on Wednesday night by the Struer, Denmark-based company.

Preliminary figures for the second quarter of 2018/2019 suggest that revenue fell 9 percent from a year earlier, B&O said. The company also suffered a slower start to the third quarter than it had expected. The results will be published on Jan. 8, which is a week earlier than was originally planned.

Despite the downgrade, B&O believes it has “the right strategy in place” and that the company is “progressing well on our key strategic initiatives,” according to Chief Executive Officer Henrik Clausen.

The company is focused on changing the sales and distribution network, “which is necessary to strengthen the customer experience and ensure future growth,” he said.

B&O kept its outlook for its Ebit margin and free cash flow.

B&O Blamed the Following Factors:

• A time-lag effect in changing the sales and distribution network, from so-called low performing points-of-sale to the opening of new points-of-sale.
• The change to a more direct distribution model, which B&O says has impacted sales in especially EMEA and the Americas.
• A change of distributor in Australia and New Zealand, which has impacted sales in Asia.
• There were also challenges related to starting up with a new logistics service partner, which caused delays in meeting orders. That’s hurt sales in EMEA and Americas, especially in November, B&O says.

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