Swedish fashion retailer Kappahl Holding AB today (28 September) booked an 18% rise in fourth quarter profit, helped by tax gains.

Net profit rose to SEK125m from SEK106m a year earlier. Operating profit meanwhile fell to SEK156m (US$22.7m) in the three months to 31 August, compared with SEK176m in the same period last year, after being hit by higher selling costs.

Kappahl's sales grew 5.2% year-on-year to SEK1.29bn in the quarter, versus SEK1.23 in the prior year.

For the full year, the retailer’s net profit climbed 27.6% to SEK402m from last year’s SEK315m. The results were boosted by tax gains and a 5% rise in revenues to SEK5.1bn.

CEO Christian Jansson said: “Growth from new stores continues to be good and we have succeeded in improving the growth rate in existing stores, though here we have more to do.”

The company operates around 350 stores in Sweden, Norway, Finland, Poland and the Czech Republic selling value fashion for women, men and children.