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KappAhl Q3 net sales up 1.8 percent, earnings drop

KappAhl’s net sales for the third quarter amounted to 1,217 million Swedish krona (142 million dollars), representing an increase of 1.8 per cent. This, the company said, is explained by the effect of new and closed stores, down 0.7 percent; change in comparable stores of 0.5 percent; and currency translation differences totalling 2 percent. Earnings per share for the quarter were 1.05 Swedish krona (0.12 dollar) against 1.16 Swedish krona (0.14 dollar) reported same quarter, last year.

“The quarter started cautiously but picked up towards the end. An aggressive market contributed to a higher percentage of discounted sales, which had a negative impact on the margin. Despite this, determined work on our new range strategy and pricing and campaign strategy has led to yet another good quarter,” said Danny Feltmann, President and CEO of the company in a statement.

KappAhl posts Q3 gross profit of 775 mn Swedish krona

Gross profit for the quarter was 775 million Swedish krona (90 million dollars), which corresponds to a gross margin of 63.7 percent against 64.9 percent last year. Pre-tax profit stood at 110 million Swedish krona (12 million dollars) and profit after tax was SEK 81 million Swedish krona (9.50 million dollars).

At the close of the period the total number of stores was 357 compared to 373 last year. Of these, 178 were in Sweden, 97 in Norway, 59 in Finland and 23 in Poland. The company opened six stores and closed six during the quarter. After the end of the quarter KappAhl decided to open Newbie Store and associated online shopping in the United Kingdom. The first stores are expected to open during the fall.

Net sales for nine months period rose 5.5 percent

KappAhl's net sales for the nine month period were 3,668 million Swedish krona (430 million dollars), an increase of 5.5 percent compared with the previous year. This, the company said, is explained by the effect of new and closed stores, 0.8 percent; change in comparable stores of 2.4 percent; and currency translation differences totalling 2.3 percent.

Gross profit for the period was 2,299 million Swedish krona (269 million dollars), which corresponds to a gross margin of 62.7 compared to 63.1 percent last year. Operating profit was 310 million Swedish krona (36 million dollars), equivalent to an operating margin of 8.5 percent. Pre-tax profit was 303 million Swedish krona (35 million dollars) and profit after tax was 222 million Swedish krona (26 million dollars). Earnings per share for the period were 2.89 Swedish krona (0.34 dollar) compared to 2.42 Swedish krona (0.28 dollar).

Picture:Kappahl