Gross profit for the full year was SEK 3,056 (2,918) million, which corresponded to gross margin of 62.2 (61.8) per cent for previous year. Similarly, gross profit for the fourth quarter was SEK 757 (724) million, which corresponded to gross margin of 60.7(58.0) per cent.
The operating profit for the year was SEK 448 (350) million, equivalent to operating margin of 9.1 (7.4) per cent. For the fourth quarter of 2017, the operating profit was SEK 139 (99) million, equivalent to operating margin of 11.1 (7.9) per cent.
For 2017, profit before tax was SEK 427 (341) million and profit after tax was SEK 364 (245) million. Profit before tax was SEK 124 (95) million and profit after tax was SEK 141 (59) million for the fourth quarter.
"The 2016/2017 financial year was yet another step towards KappAhl’s financial targets–to achieve an operating margin of 10 per cent and a sales increase of 4 per cent over a business cycle. The operating margin for the year was 9.1 (7.4) per cent and sales increased by 4.1 per cent. An improved gross margin, leverage on costs and the restructuring programme in Poland are positive factors affecting the profit for the year," said Danny Feltmann, president and chief executive officer.
KappAhl's cash flow from operating activities before changes in working capital was SEK 529 (439) million for the year. The improvement mainly refers to a higher operating profit. The change in inventories is mainly related to an increased inventory turnover rate. Investments of SEK 177 (120) million were made during the period, mainly referring to investments in existing and newly opened stores and process and IT related investments.
"We have confirmation that our efforts are having an effect and our development work is now continuing at a sustained pace. The pace of investment will probably continue to be high as we adapt the store network and develop omni-channel services. The exciting expansion of Newbie Stores continues, in existing markets and to the United Kingdom. A guiding star in the ongoing work is the right fashion for our customer, when and how the customer chooses. The goal is for KappAhl to be the first-hand choice, thus laying the foundation for continued growth. We are continuing this journey with great enthusiasm," concluded Feltmann. (RR)
Fibre2Fashion News Desk – India
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