• Q2 net loss SEK3m, down from SEK7m
  • Net sales rise 1.7% to SEK1.133bn
  • Gross margin up slightly to 57.8%
Sales rose 1.7% during the quarter

Sales rose 1.7% during the quarter

Clothing retail business Kappahl said a good Christmas and a well-implemented discount strategy led to a narrower loss in the second quarter, with sales up slightly on last year.

However, half-year figures showed a slight decline in sales to just over SEK2.3bn, while net profit edged up slightly to SEK58m.

Kappahl said its decision to go for the fast roll-out of its new store concept had doubled the rate of investment in the period.

"With good Christmas sales and a well-implemented discount strategy, inventories are at satisfactory levels and the operative cash flow is continuing its positive trend," said company president and CEO Johan Åberg.

"The higher dollar rate has had limited effect on the business during the quarter, but will affect us to a greater extent in the coming quarters."