KappAhl publishes preliminary financial results for the fourth quarter 2018/2019

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KappAhl AB’s (publ.) majority shareholder, Mellby Gård AB, has made a public takeover bid for all shares in KappAhl, with the final date for acceptance on 20 September 2019. The independent bid committé has therefore decided to present some preliminary financial statements for the fourth quarter.

Preliminary net sales for June – August 2019 amount to SEK 1,322 million (1,239) with a preliminary operating profit of SEK 108 million (66). Preliminary net sales and operating profit for the full year 2018/2019, the period September 2018 – August 2019, amount to SEK 4,902 million (4,760) and SEK 211 (282) million respectively, adjusted for non-recurring costs of SEK 43 million, incurred in the third quarter.

Selected key figures

June 2019 -  June 2018 -  September 2018 -  September 2017 - 
Amounts in SEK million    August 2019  August 2018  August 2019  August 2018 
Net sales  1,322  1,239  4,902  4,760 
Gross profit  749  733  2,915  2,942 
Operating profit  108  66  168  282 
Gross margin  56.7 %  59.2 %  59.5 %  61.8 % 
Operating margin  8.2 %   5.3 %  3.4 %  5.9 % 

Sales in the quarter increased by about 7 per cent 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, sales were associated with a large proportion of clearance sales and campaigns, which had some impact on the gross margin. The operating profit was positively impacted by the previously announced earnings improvement programme, which is delivering clear savings in both stores and administrative functions.

KappAhl’s fourth quarter report for 2019 will be published at 07.30 (CET) on 9 October 2019.

The information was released for public disclosure, through the agency of the contact persons below, at 3.50 pm CEST on 11 September 2019

For further information, please contact
Charlotte Högberg, Head Corporate Communications, tel +46 (0)70 471 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 380 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 57 per cent of the range. Sales for 2017/2018 totaled SEK 4.8 billion and the company has approx. 4,000 employees in ten countries. KappAhl is quoted on Nasdaq Stockholm. More information at www.kappahl.com