Kid ASA - Lower than expected gross margin in Q3 2022
Lier, 4 November 2022.Kid will in Q3 2022 report lower than expected gross margin due to high freight cost. Overseas freight cost expressed as percentage of cost of goods sold was 21.7% in Q3 2022, up from 10.9% in Q3 2021. Our price model has not sufficiently taken into consideration the volatility in fright cost and consequently not been reflected in increased sales prices. The reported gross margin was 55.5% in Q3 2022, down from 61.4% in Q3 last year. The higher freight cost is also expected to negatively impact the gross margin for Q4 2022 and into 2023. With freight spot