Kappahl-CEO: Pleased with Sweden and Norway – Finland and Poland still challenging

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Fashion chain Kappahl’s sales in the second quarter increased by 1.7 percent.

Now CEO Johan Åberg announces a new beauty concept – and new online markets.

”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. 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,” says CEO Johan Åberg in a written comment.

In the Swedish market KappAhl continues to take market share. At the close of 2014, according to GfK Fashion Scope, Kappahl had a market share of 7.0 (6.9)%. This puts Kappahl second among the large chains.

”We are also pleased with developments in Norway. The economic situation in Finland continues to be tough, which also affects KappAhl. In Poland our situation is still challenging and our restructuring programme aimed at winding up unprofitable stores is continuing according to plan.”

Johan Åberg also comments the progress of new launches.

”The opening of our first Newbie store has been a success that we will develop further. We are also reviewing the possibility of opening more brand-specific stores. Shop Online in Norway and Finland is delivering results slowly but surely. This summer we will also open Shop Online in Poland, which is one of our largest online markets in Europe. The next step will be to evaluate the online markets where KappAhl does not as yet have any stores.”

Kappahl goes the same strategy way as competitor Lindex by launching a self branded beauty concept, KappAhl Beauty.

”A cosmetic concept that will further augment our customer offer,” writes Johan Åberg.

 

Second quarter (Dec–Feb) Half year   (Sept-Feb)
  2014/2015 2013/2014 Change 2014/2015 2013/2014 Change
Net sales, SEK million 1 133 1 114 19 2 307 2 357 -50
Operating profit, SEK million 9 3 6 104 102 2
Gross margin % 57.8 57,7 0,1 60.6 60,7 -0,1
Operating margin, % 0.8 0,3 0,5 4.5 4,3 0,2
Profit after tax, SEK million -3 -7 4 58 55 3
Earnings per share after dilution, SEK (Note   1) -0.04 -0,09 0.05 0.77 0.73 0,04
Cash flow from operating activities, SEK million 95 -51 146 163 74 89