SWEDEN: KappAhl Q4 profit drops despite rising sales
- Q4 profit drops 6.2%
- Sales rose 11.2% to SEK1.23bn
- Maintains strong margins of 61.1%
Swedish value fashion retailer KappAhl Holding AB today (30 September) posted a 6.2% drop in fourth quarter profit but says it continues to grow its market share.
"Despite the worst recession for a very long time we are nevertheless keeping up with our operative and financial targets," said CEO Christian W Jansson.
"We are again seeing good growth for comparable stores...[and] we have taken market share in an industry that has had a difficult time in the past year."
Profit after tax in the three months from June to August fell to SEK106m (US$15.2m) from SEK113m in the same period last year.
Operating profit dropped 3.3% to SEK 176, but stripping out last year's non-recurring gains of SEK31m operating profit would have risen 17% KappAhl said.
Sales for the period rose 11.2% to SEK1.23bn, up from SEK1.1bn a year earlier.
The retailer also managed to maintain strong margins of 61.1% against last year's 62.4%.
For the full year KappAhl, which has 319 stores in four countries, said profit after tax was down 27.8% to SEK315m, while sales rose 5.3% to SEK4.87bn.
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