KappAhl Q3 report: Weak sales in May

In working on our plan for KappAhl we are now in a phase where we choose not to let up on the pace. With continued good cost control we are converting our stores and investing in important development projects.”

Johan Åberg, President and CEO. Read the full CEO statement in the report.

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Third   quarter (March-May) Nine   months (September-May)
2014/2015 2013/2014 Change 2013/2014 2013/2014 Change
Net sales, SEK million 1 132 1 201 -69 3 439 3 558 -119
Operating profit, SEK   million 42 101 -59 146 203 -57
Gross margin, % 61.7 62,7 -1,0 61.0 61,4 -0.4
Operating margin, % 3,7 8,4 -4,7 4,2 5,7 -1.5
Profit after tax, SEK   million 23 42 -19 81 97 -16
Earnings per share after   dilution, SEK (Note 1) 0.30 0,56 -0,26 1.06 1,29 -0.23
Cash flow from operating activities, SEK   million 194 271 -77 357 345 12
  • Net sales in comparable stores decreased by 5.9 % during the quarter and 2.9 % in September-May. The decrease in the quarter is mainly due to poor sales in May, following cold weather and negative calendar effects.
  • The operating margin over the rolling twelve months is 5.2 (5.5) %.
  • The cash flow continues to be strong and net debt historically low.
  • In total 24 stores have been converted to the new store concept.
  • The second Newbie Store and the first Hampton Republic 27 store will open in November.

The information in this interim report is disclosed by KappAhl AB (publ) pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for public disclosure on 23 June 2015, at 07.30 am. This interim report has been translated to English from the Swedish report. In case of any inconsistency the Swedish version shall prevail.

For further information
Johan Åberg, President and CEO, phone 46 706 09 99 73, johan.aberg@kappahl.com
Anders Düring, Chief Financial Officer, phone 46 708 88 77 33, anders.during@kappahl.com

Company information and photos
Charlotte Högberg, Head Corporate Communications, phone 46 704 71 56 31, charlotte.hogberg@kappahl.com

KappAhl was founded in 1953 and is a leading fashion chain in the Nordic region with nearly 400 stores in Sweden, Norway, Finland and Poland together with Shop Online. KappAhl offers good-value fashion of its own design to a wide range of consumers – women, men and children – with a particular focus on women in the mid-life age range. 24% of the range is sustainability labelled. In 2013/2014, the turnover was SEK 4.7 billion and the number of employees approx. 4,000. KappAhl is quoted on NASDAQ Stockholm. For more information, please visit www.kappahl.com.

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About Us

KappAhl was founded in Gothenburg in 1953 and is a leading fashion chain in the Nordic region with close to 400 stores in Sweden, Norway, Finland and Poland. Our business idea is to offer value-for-money fashion of our own design to women in the prime of life and their family. Sustainability-labeled fashion accounts for 38 per cent of the range. Sales for 2015/2016 totaled SEK 4.7 billion and the company has approx. 4,000 employees in eight countries. KappAhl is quoted on Nasdaq Stockholm. More information is available at www.kappahl.com