Swedish clothier KappAhl estimates lower sales during the first quarter

KappAhl AB estimates that their operating profit for the first quarter 2017/2018 will be lower than the first quarter 2016/2017.

Sales during the quarter has not lived up to our expectations so far. This is mainly depending on our price- and campaign strategy that has not given the effect we wished for in the tough market climate during the fall, says KappAhl’s President and CEO Danny Feltmann.

KappAhl estimates that the operating profit for the first quarter 2017/2018 will be approximately 100 MSEK, compared to 145 MSEK for the first quarter 2016/2017.

Sales during the quarter has not lived up to the company’s expectations so far. A lower consumption in general during the warm fall has resulted in reduced traffic.

With these insights we see that we did not adapt our price- and campaign strategy, aiming to increase full price sales, quickly enough. Going forward we will adjust our price- and campaign strategy at a pace more adapted to the market as well as keeping a continued good cost control, says Danny Feltmann.

KappAhl’s financial report for the first quarter, September-November 2017, will be published as planned on December 20, 2017.

www.kappahl.com