Decreasing sales for KappAhl’s new CEO

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New KappAhl CEO Danny Feltmann today presented his first interim report and defined it as strong due to good gross margins despite lower sales, especially in Norway.

”My colleagues and I have started our joint journey towards a clearer KappAhl”, he says.

KappAhl’s net sales for the quarter amounted to 1,165 (1,174) million SEK , a decrease of 0.8 percent. This is explained by the effect of new and closed stores, 0.6 percent; change in comparable stores, 0.8 per cent; and currency translation differences totalling -2.2 percent.

The operating profit was 117 (95) million SEK. This is equivalent to an operating margin of 10.0 (8.1) per ent.

”We still have good cost control and have continued with our priority investments. The quarter’s sound margins is a combination of a successful offer strategy and a price strategy that compensates for higher purchase prices,” comments Danny Feltmann President and Chief Executive Officer.

Sales in Norway were negatively affected by the weaker Norwegian krona by about 30 million SEK compared with the previous year.
A new flagship store opened on Drottninggatan in Stockholm and for the first time all three of the Group’s store concepts opened in the same marketplace; Mall of Scandinavia in Stockholm.

Another Newbie Store opened in Oslo and Shop Online started up in Poland.

”So far we are very pleased with sales in our brand stores, Newbie Store and Hampton Republic 27,” says Danny Feltmann, and continues:

”After being in place for just over a month my work of creating a KappAhl that is clear for customers, employees and shareholders is starting to take shape. We will adapt the organisation to fully support the customer experience,
in-store and online. Each sales location must be optimally designed for an inspiring customer experience. Our customers should associate with attractive offers, rather than discounts. Our business support shall be made more effective
in order to develop our sales channels.”

First quarter (Sept-Nov)

 

 

 

 

2015/2016

2014/2015

Change

 

Net sales, SEK million

1 165

1 174

-9

Operating profit/loss, SEK million

117

95

22

Gross margin, %

65.6

63.3

2.3

Operating margin, %

10.0

8.1

1.9

Profit after tax, SEK million

83

61

22.0

Earnings per share after dilution, SEK (Note 1)

1.08

0.81

0.27

Cash flow from operating activities, SEK million

89

68

21 

Read the full report.