KappAhl, the Swedish clothing chain, has come out with its 2018/2019 Year-end report!
The report distinctly indicates that the entire year was marked by extreme hard work to meet the hard competition as well as the sliding footfall.
The year also saw KappAhl continuously endeavouring to develop so as to meet industry’s transformation, in both short-term and long-term.
Q4 witnessed the sales surge by 6.7 per cent compared to what it was during the same period in the previous year.
Total sales for the whole year (September to August) rose by 3 per cent. The reason for this rise was mainly owing to opening of new stores and exchange rate effects.
Elaborating on the same, Elisabeth Peregi, President and CEO, KappAhl, said “During the year, we opened 10 KappAhl stores and closed 9. We also opened our first KappAhl Kids store and 10 new Newbie stores and closed 2.”
She also added that all through the year the competition has been extremely tough in all markets, with increasing price reductions as a consequence.
The year’s operating profit was SEK 168 (282) million, corresponding to an operating margin of 3.4 (5.9) per cent. The operating profit adjusted for non-recurring costs of SEK 43 million, referring to the performance enhancement programme, was SEK 211 (282) million.
Going forward, Elisabeth said that the firm is now focusing strongly on business model and brand strategy, and is taking a fresh approach to the challenges to create a womenswear range with improved relevance to its customers.