- Prachi Singh |
Kappahl Ab has announced that preliminary net sales for June to August 2019 amount to 1,322 million Swedish krona (136.7 million dollars) compared to 1,239 million Swedish krona in the previous year with a preliminary operating profit of 108 million Swedish krona (11 million dollars) compared to 66 million Swedish krona last year. The company said that preliminary net sales and operating profit for the full year amount to 4,902 million Swedish krona (507 million dollars) compared to 4,760 million Swedish krona and 211 million Swedish krona (21.8 million dollars) compared to 282 million Swedish krona, respectively.
The company decided to publish preliminary numbers after its majority shareholder, Mellby Gård AB, made a public takeover bid for all shares in the company, with the final date for acceptance on September 20, 2019.
The sales in the quarter increased by about 7 percent compared with the same period of the previous year, which is a considerable improvement compared with the weak third-quarter sales reported by Kappahl. However, the company added that sales were associated with a large proportion of clearance sales and campaigns, which had some impact on the gross margin, while the operating profit was positively impacted by the earnings improvement programme.