- Prachi Singh |
Kappahl’s net sales for the second quarter amounted to 1,189 million Swedish krona (131 million dollars), an increase of 6.5 percent. This, the company said, is explained by the effect of new and closed stores, 1.8 percent; change in comparable stores, 1.9 percent; and currency translation differences totalling 2.8 percent. Net sales were 2,450 million Swedish krona (271 million dollars) for six months, an increase of 7.4 percent compared with the previous year. Effect on these results of new and closed stores was 1.7 percent; change in comparable stores of 3.4 percent; and currency translation differences of 2.3 percent.
“Kappahl met Christmas with clear campaigns and an attractive range. Our strategy of incorporating more fashion in the Christmas campaigns boosted sales while communicating well that Kappahl is a given destination for buying Christmas presents. A successful strategy for the sale season contributed to an effective sales period. The start of the season in February was initially characterised by a cautious market, said Danny Feltmann, Kappahl’s President and CEO in a statement.
Financial highlights of Q2 and H1
Gross profit for the quarter was 700 million Swedish krona (77 million dollars) against 654 million Swedish krona (72 million dollars), which corresponds to a gross margin of 58.9 compared to 58.6 percent, same quarter last year. Net financial income for the quarter was 4 million Swedish krona (0.44 million dollars) and the pre-tax profit was 51 million Swedish krona (5.6 million dollars). Profit after tax was 34 million Swedish krona (3.7 million dollars), while earnings per share were 0.44 Swedish krona (0.05 dollar) against 0.18 Swedish krona (0.02 dollar) last year.
Gross profit for the half year was 1,524 million Swedish krona (169 million dollars) compared to 1,418 million Swedish krona (157 million dollars), which corresponds to a gross margin of 62.2 percent. Net financial income was 3 million Swedish krona (0.3 million dollars). Pre-tax profit was 193 million Swedish krona (21 million dollars) and profit after tax was 141 million Swedish krona (15 million dollars). Earnings per share for the half year were 1.84 Swedish krona (0.20 dollar) against 1.26 Swedish krona (0.14 dollar) in the same period last year.
At the close of the period the total number of stores was 357, of these, 176 were in Sweden, 98 in Norway, 58 in Finland and 25 in Poland. Eleven stores were closed during the quarter.