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Kappahl records 2.1 percent increase in Q3 net sales

By Prachi Singh

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Management

Kappahl’s net sales for the third quarter amounted to 1,242 million Swedish krona (139.7 million dollars), an increase of 2.1 percent driven by the change in comparable stores of 2.7 percent; 2.6 percent negative effect of new and closed stores, and currency translation differences totalling 2 percent.

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“The progress in the third quarter shows us that Kappahl is back on track. A range that continues to be attractive, well-coordinated campaigns and a well managed supply chain will lead to maintained high quality of sales. Our aim is sound profitability through being our customer’s preferred choice,” said Göran Bille, Acting President and Chief Executive Officer of Kappahl in a statement.

Third quarter update of Kappahl’s results

Gross profit for the quarter was 801 million Swedish krona (90 million dollars), which corresponds to a gross margin of 64.5 percent. Profit before tax was 121 million Swedish krona (13.6 million dollars) and profit after tax was 94 million Swedish krona (10.5 million dollars). Earnings per share for the quarter increased to 1.22 Swedish krona (0.14 dollar).

At the close of the period the total number of stores were 369, of these, 178 were in Sweden, 99 in Norway, 62 in Finland, 25 in Poland and five in Great Britain. Four stores were opened during the quarter and two were closed.

In the third quarter, parent company’s net sales dropped to 4 million Swedish krona (0.4 million dollars) and pre-tax profit was negative 1 million Swedish krona (0.1 million dollars).

Kappahl’s performance in the nine months period

Kappahl's net sales declined to 3,522 million Swedish krona (396 million dollars) for the nine month period. This is a decrease of 4 percent compared with the previous year, the company said, was due to 2.1 percent decline in comparable store sales, 1.9 percent negative effect of new and closed stores, and currency translation differences totalling 0.2 percent.

Gross profit for the period dropped to 2, 209 million Swedish krona (248.5 million dollars), which corresponds to a gross margin of 62.7 percent. Earnings per share for the period were 2.28 Swedish krona (0.26 dollar) compared to 2.89 Swedish krona (0.33 dollar) last year.

Parent company’s net sales for the nine-month period reduced to 14 million Swedish krona (1.5 million dollars) and the pre-tax profit declined to 31 million Swedish krona (3.4 million dollars). The parent company received dividend from subsidiaries of 50 million Swedish krona (5.6 million dollars).

The company added that dividend of 154 million Swedish krona (17.3 million dollars) has been distributed to shareholders and a further transfer to shareholders was made of 499 million Swedish krona (56 million dollars) in the form of a share split combined with a share redemption procedure.

Picture credit:Kappahl

KappAhl
MULTIMEDIA