• Q1 net profit of SEK115m, versus SEK11m loss last year
  • Net sales up 4.4% to SEK1.245bn
  • Comparable store sales up 3%

Fashion retailer Kappahl returned to profit in the first quarter of its fiscal year, thanks to a 4.4% sales increase and a 3% rise in comparable store sales.

The Swedish company recorded a 4.9 percentage point increase in gross margin and kept control over its costs, despite opening 14 new stores.

It also posted a capital gain of SEK77m (US$11.9m) thanks to the sale of company-owned property, Kappahl said.

“It’s a little too early to say this is a new positive trend for the company, but it’s quite clear there are strong signals indicating we are on the right path,” said Johan Åberg, Kappahl president and CEO.