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Kappahl reports Q2 net sales increase on 6.3 percent

By Prachi Singh

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Management

Kappahl’s net sales for the second quarter amounted to 1,185 million Swedish krona (128.7 million dollars), an increase of 6.3 percent. This, the company said, is explained by the 2.9 percent change in comparable stores, 1.7 percent in new and closed stores, and 1.7 percent effect of currency translation differences. The company added that earnings per share for the quarter were 0.02 Swedish krona compared to 0.07 Swedish krona in the previous year.

“Sales for the quarter were marked by a more balanced offer in which both the Christmas trade and subsequent clearance sales had a good structure. Full-price sales at the start of the season were satisfactory, very much thanks to well-filled stores and a broader range,” said Peter Andersson, Kappahl’s CFO and acting President/CEO in a statement.

Kappahl’s H1 net sales improve by 4.3 percent

Kappahl’s net sales were 2,379 million Swedish krona (258.3 million dollars) for the half year, an increase of 4.3 percent compared with the previous year. This, Kappahl said, is explained by 0.5 percent change in comparable store sales, 1.6 percent in new and closed stores, and 2.2 percent of currency translation differences.

Gross profit for the half year was 1,436 million Swedish krona (155.9 million dollars), which corresponds to a gross margin of 60.4 percent compared to 61.8 percent. The operating profit was 55 million Swedish krona (5.9 million dollars) compared to 95 million Swedish krona, equivalent to an operating margin of 2.3 percent compared to 4.2 percent in the previous year. Pre-tax profit for the first half was 49 million Swedish krona (5.3 million dollars) compared to 96 million Swedish krona and profit after tax was 40 million Swedish krona (4.3 million dollars) compared to 81 million Swedish krona. Earnings per share for the period were 0.51 Swedish krona compared to 1.05 Swedish krona in the prior year’s first half.

Gross profit for the second quarter increased to 681 million Swedish krona (73.9 million dollars), corresponding to a gross margin of 57.5 compared to 58.8 percent. The operating profit was 2 million Swedish krona compared to 5 million Swedish krona in the year ago period, equivalent to an operating margin of 0.2 percent.

At the close of the period, the company operated 380 stores, of which 27 were Newbie Store. Of the total number of stores, 182 were in Sweden, 101 in Norway, 61 in Finland, 29 in Poland and seven in the United Kingdom. During the quarter one store was opened and three were closed.

Picture credit:Kappahl

KappAhl