- Prachi Singh |
Kappahl’s net sales for the fourth quarter amounted to 1,239 million Swedish krona (137 million dollars), a decrease of 0.7 percent affected by 1.6 percent drop in comparable store sales, 1.9 percent negative impact of new and closed stores, and currency translation differences totalling 2.8 percent. For the full year, net sales were 4,760 million Swedish krona (526.8 million dollars), a decrease of 3.2 percent driven by 2 percent drop in comparable store sales, 2 percent negative impact of new and closed stores, and currency translation differences totalling 0.8 percent.
“The past year was challenging for Kappahl. Effects of fewer visits to stores and tough competition contributed to a decrease in sales of 3.2 percent. At the same time, good cost control and intensive development work with digital solutions and in the store network have meant that we are in a stronger starting position than a year ago,” said Göran Bille, acting President and Chief Executive Officer, Kappahl in a statement.
Financial highlights of Kappahl’s Q4 and full year results
Gross profit for the quarter was 733 million Swedish krona (81 million dollars) compared to 757 million Swedish krona, which corresponds to a gross margin of 59.2 percent compared to 60.7 percent last year. Profit before tax was 65 million Swedish krona (7.2 million dollars) compared to 124 million Swedish krona and profit after tax was 49 million Swedish krona (5.4 million dollars) compared to 141 million Swedish krona last year, while earnings per share for the quarter were 0.64 Swedish krona against 1.84 Swedish krona last year.
Gross profit for the full year was 2,942 million Swedish krona (326 million dollars) compared to 3,056 million Swedish krona, which corresponds to a gross margin of 61.8 percent compared to 62.8 percent. Pre-tax profit was 282 million Swedish krona (31.2 million dollars) compared to 427 million Swedish krona and profit after tax was 224 million Swedish krona (24.8 million dollars) compared to 364 million Swedish krona, while earnings per share for the period were 2.92 Swedish krona compared to 4.74 Swedish krona last year.
At the close of the period the total number of Kappahl stores was 369, of which 22 were Newbie Stores. Of these, 177 were in Sweden, 99 in Norway, 62 in Finland, 25 in Poland and six in the United Kingdom. Two stores were opened during the fourth quarter and one was closed.