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Kappahl's Q2 sales decrease 6.2 percent

By Prachi Singh

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Business

In the second quarter of 2017/2018 Kappahl's sales decreased by 6.2 percent to 1,115 million Swedish krona (135.4 million dollars). The gross margin was 58.8 percent compared to 58.9 percent and the operating profit was 5 million Swedish krona compared to 47 million Swedish krona in the same quarter last year. Kappahl's net sales were 2,280 million Swedish krona for the six-month period, a decrease of 6.9 percent. Gross profit for the half year was 1,408 million Swedish krona (170.9 million dollars), which corresponds to a gross margin of 61.8 percent against 62.2 percent.

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“Bright spots in a severely negative market were our lower inventory levels and that growth in ecommerce has continued in line with the strong trend of 30-40 percent we saw in the past year. Our omni-channel services are developing in line with our ambitions; for example Click & Collect is used by more than half of our ecommerce customers and thus contributes to more visits to stores and many customers deciding to shop when they are there,” said Danny Feltmann Kappahl’s President and CEO in a statement.

Q2 gross profit reaches 655 mn Swedish krona at Kappahl

Gross profit for the quarter was 655 million Swedish kroan (79.5 million dollars), corresponding to a gross margin of 58.8 percent. At the close of the period the total number of stores was 363 compared to 357 last year. Of these, 180 were in Sweden, 98 in Norway, 59 in Finland, 24 in Poland and two in the United Kingdom. One store was opened during the quarter and one was closed.

Parent company net sales for the quarter were 4 million Swedish krona (0.4 million dollars) compared to 7 million Swedish krona (0.8 million dollars) and pre-tax profit was 45 million Swedish krona against 50 million Swedish krona last year.

The company said that it has received 50 million Swedish krona (6 million dollars) against 49 million Swedish krona (5.9 million dollars) in dividend from subsidiaries. Dividend of 153 million Swedish krona (18.5 million dollars) has been distributed to shareholders and a further transfer to shareholders was made of 499 million Swedish krona (60.5 million dollars) in the form of a share split combined with a share redemption procedure.

Picture credit:Kappahl

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MULTIMEDIA