Home / Knowledge / News / Apparel/Garments / KappAhl sales up 6.7% to SEK 1,322 mn in Q4 2019

KappAhl sales up 6.7% to SEK 1,322 mn in Q4 2019

10
Oct '19
Pic: KappAhl
Pic: KappAhl
KappAhl's sales for Q4 of 2019 increased by 6.7 per cent to SEK 1,322 million against sales of SEK 1,239 million for Q4 of 2018. Gross profit for the quarter was SEK 751 million. For the full year from September 2018-August 2019, sales increased by 3 per cent to SEK 4,901 million compared to sales of SEK 4,760 million for corresponding period last year.

"KappAhl’s activities in the full year 2018/19 have been marked by hard work to meet hard competition and declining footfall. They were also characterised by development to meet the industry’s transformation, in both the short and long-term. Sales in the fourth quarter increased by 6.7 per cent compared with the same period of the previous year, a considerable improvement compared with the weak sales we reported in the third quarter. Total sales for the year increased by 3.0 per cent, which is mainly attributable to new stores and exchange rate effects. During the year we opened ten KappAhl stores and closed nine, opened our first KappAhl Kids store and ten new Newbie stores and closed

two. Sales in Poland continue to grow, this year by a total of 17 per cent and business in the United Kingdom and Norway is also showing a positive trend," said Elisabeth Peregi, president and chief executive officer of KappAhl.

"Throughout the year competition has been very tough in all markets, with increasing price reductions as a consequence. This, along with increasing purchase prices, has had a negative impact on the gross margin in all quarters. At the close of the financial year inventory value had increased by SEK 90 million, mainly due to a higher dollar exchange rate.

We see clear effects from the SEK 100 million performance enhancement programme launched during the second quarter. Operating profit in the fourth quarter was positively impacted through lower costs both in store and administrative functions, with a total effect for the year of about SEK 32 million. We will see the full effect in the next financial year. As we announced in the previous interim report, the performance enhancement programme will be extended. In the present situation we will add another SEK 50 million where rents and store areas, other overhead expenses and continued review of the organisation will account for approximately equal amounts. Work is continuing to identify more performance enhancement opportunities.

Our vital sustainability work, Responsible Fashion, has this year achieved several important interim targets. As of this autumn, our entire denim range is manufactured in more sustainable material (grown with more sustainable methods) and through more sustainable production processes (less water, energy and chemicals). We have augmented our efforts to achieve the UN climate goals by being an initiator of the Swedish Textile Initiative for Climate Action (STICA) and as a new partner in the textile recycling company Re:newcell increasing our contribution to the work of creating industrial methods for recycling textiles.

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. We are now intensifying work on our business plan. Focusing strongly on business model and brand strategy, we are taking a fresh approach to the challenges to create a womenswear range with improved relevance to our customers. We will also further develop our already strong childrenswear business. Examples of this to date are the opening of our first KappAhl Kids store in February and the continued growth of Newbie as a shop-in-shop at KappAhl and in its own stores and markets. What we need to do to be the first choice of each priority customer group is becoming increasingly clear."

KappAhl, founded in 1953 in Gothenburg, is a leading fashion chain in Nordic region.

Fibre2Fashion News Desk (PC)


Interviews View All

Footwear industry, Head honchos

Footwear industry
Head honchos

There is rising demand for fancy, trendy and yet comfortable footwear

Textile industry, Head honchos

Textile industry
Head honchos

GenNext is slowly but surely adapting to global trends and practices

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Wesly Clements,

Wesly Clements

US-based Baldwin Technology Company is a global manufacturer and supplier...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search