SWEDEN: KappAhl Q1 profit halves on warm autumn
- Q1 profit of SEK62m, down 46%
- Sales fell 0.2% to SEK1.24bn
- Gross margin flat at 63.3%
Swedish fashion chain KappAhl has today (14 January) reported a 46% decline in first-quarter net profit, after a warm autumn weighed on sales of cold-weather clothing.
Net profit stood at SEK62m (US$9.6m) for the three months to November, down 46% from SEK115m in the same period of the prior year.
Sales fell 2% to SEK1.24bn, compared to SEK1.25bn in the previous year, weighed down by the impact of new and closed stores, change in comparable stores and currency effects. Gross margin, meanwhile, remained flat at 63.3%.
President and CEO Johan Åberg said: The warm autumn brought sales challenges for KappAhl and the rest of the industry.
"Now we have the results of the first quarter, September-November, we can see that KappAhl, despite this, is delivering figures on a level with the previous year."
The winding up of the company's operations in the Czech Republic, which was first announced last October, has gone according to plan, Åberg added.
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