Sweden-based fashion label KappAhl has announced its year-end report for the year 2017-18. The company recorded a decline of 3.2 per cent in sales due to tough competition and less footfall in stores.
During the said period, the operating profit was recorded at SEK 282 million which is significantly lower than the previous year’s profit which was SEK 448 million and the operating margin at 5.9 (9.1) per cent for the year.
Notably, during the year under review, the company opened four new KappAhl outlets while closing the same number of stores as well as converting 23. Newbie Store has continued on its successful expansion spree and at the close of the year and doubled the store to 22 which was 11 last year.
Göran Bille, Interim President & Chief Executive Officer, said in a press statement issued that the brand is pleased with the results in the United Kingdom and in Polland, especially with the way its Newbie brand has performed. “We will continue to expand in these locations and we have managed to launch two new stores here in FY ‘18,” Bille said.
Furthermore, the net sales during the said period for the Swedish brand were SEK 4,760 million during the year, a decline of 3.2 per cent as compared the previous year where the numbers were SEK 4,916 million. While the fashion brand made a significant investment of SEK 172 million which is about 5 million less than what was made during the FY ‘17.
The company’s operating profit was reduced to SEK 282 million as compared to 448 million during the prior year.
