KappAhl Q3 2017/2018: Weak women’s wear offer undermined the quarter

“The third quarter was challenging for KappAhl with a very weak close in the Nordic markets. Turnover in women’s wear decreased, while children’s wear increased and continued to report strong business. E-commerce accounted for 6.2 (5.6) per cent of total sales during the quarter.” Read the full CEO statement in the enclosed file

•             Sales decreased in the third quarter by 3.3 per cent. In the period September-May sales grew by 1.6 per cent.

•             The gross margin for the third quarter was 60.8 (64.5) per cent. In the period September-May it was 60.5 (62.7) per cent.

•             Operating profit for the third quarter decreased to SEK 6 (121) million. In the period September-May it was SEK 60 (216) million.

•             The operating profit was affected by non-recurring costs of SEK 43 million for the programme started to improve earnings. The operating profit adjusted for one-off costs for the quarter was 49 (121) and accumulated SEK 103 (216) million.

•             Elisabeth Peregi, new President and Chief Executive Officer at KappAhl, took up her post on 7 April 2019.

•                            Third Quarter (March-May)         Nine months (Sep-Feb)

               2018/2019          2017/2018          Change 2018/2019          2017/2018          Change

Net sales, SEK million     1 200     1 242     -42         3 580     3 522     58

Gross margin, %                 60,8       64,5     -3,7        60,5       62,7       -2,2

Operating profit/loss, SEK million          

6             121        -115       60           216        -156

Operating margin, %       0,5         9,7         -9,2        1,7         6,1         -4,5

Profit after tax, SEK million  6  94           -88         45           175        -130

Earnings per share, SEK 0,08       1,22       -1,14      0,58       2,28       -1,71

Cash flow from operating activities, SEK million 

183        292        -109       163        343        -180

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-labelled 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.

www.kappahl.com