KappAhl first quarter 2017/2018: Lower sales as competition toughens
“…Sales during the quarter did not live up to our expectations... The strategy of changing the price and campaign structure has not lived up to our expectations in the same way as in the previous year, in part due to a tougher market climate. Our assessment is that it is partly due to warmer weather during the autumn, but also a change in purchasing behaviors with accelerated online shopping.” Read the full CEO statement in the enclosed report.
- Sales decreased by 7.5 per cent to SEK 1,166 (1,261) million during the quarter and the gross margin decreased by 0.7 percentage points to 64.6 (65.3) per cent.
- In order to promote seamless shopping, services such as Click&Collect, Shop Online in Store and the payment service Klarna In-Store were launched.
- Twelve KappAhl stores were upgraded and three new stores opened. Six new Newbie Stores were opened, including online shopping and a first Newbie Store in the United Kingdom.
- The operating margin was 7.8 (11.4) per cent.
| First Quarter (Sep-Nov) | |||
| 2017/2018 | 2016/2017 | Change | |
| Net sales, SEK million | 1 166 | 1 261 | -95 |
| Operating profit/loss, SEK million | 90 | 144 | -54 |
| Gross margin, % | 64,6 | 65,3 | -0,7 |
| Operating margin, % | 7,8 | 11,4 | -3,6 |
| Profit after tax, SEK million | 77 | 107 | -30 |
| Earnings per share, SEK | 1,00 | 1,39 | -0,39 |
| Cash flow from operating activities, SEK million | 138 | 162 | -24 |
This information is information that KappAhl AB is obliged to disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was released for public disclosure through the agency of President and CEO Danny Feltmann on 20 December 2017 at 07.30 CET.
For further information:
Danny Feltmann, President & CEO. Tel. +46 31 771 56 61.
Torbjörn Gustafsson, acting CFO Q1. Tel. + 46 704 71 57 13.
Charlotte Högberg, Head Corporate Communications. Tel. +46 704 71 56 31. Email charlotte.hogberg@kappahl.com.
KappAhl was founded in Gothenburg in 1953 and is a leading fashion chain in the Nordic region with 370 KappAhl and Newbie stores, including Shop Online, in Sweden, Norway, Finland, Poland and Great Britain. Our business idea is to offer value-for-money fashion of our own design to the many people. Sustainability-labeled fashion accounts for 53 per cent of the range. Sales for 2016/2017 totaled SEK 4.9 billion and the company has approx. 4,000 employees in ten countries. KappAhl is quoted on Nasdaq Stockholm. More information at www.kappahl.com
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