Sweden-based women’s fashion retailer Kappahl recently announced its financial report for the first quarter of FY 2018-19. The company reported an increase of 2.4 per cent in its net sales amounting to 1,194 million Swedish krona.
The company elucidated a negative 1.8 per cent effect of changes in comparable store business, 1.6 per cent impact of new and closed stores, and currency translation differences amounting to 2.6 per cent.
Additionally, the gross profit for the said period was reported at US $ 83.5 million as against US $ 83 million during the prior year, recording an overall margin of 63.3 per cent as compared to 64.6 per cent. The operating profit for Q1 was US $ 5.7 million which was US $ 9.9 million in the previous year, marking an operating margin of 4.4 per cent as against 7.8 per cent.
“After the close of the first quarter of the financial year, we see that Kappahl performed better than the industry in all sales markets. Sales were up by 2.4 per cent compared with the previous year, but the slowing consumption meant a continued high tempo of costly sales activities.” – Peter Andersson, Chief Executive Officer & Chief Financial Officer, KappAhl
Notably, the brand operates 382, that includes 28 Newbie Stores. The company has its presence in five countries; managing 181 outlets in Sweden, 102 across Norway, 63 and 29 in Finland and Poland respectively and seven throughout the United Kingdom.
