Kap­pAhl net sales down by 3.2 per cent dur­ing FY 2017-18

Apparel Online - - Retail Current -

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 at 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 was 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 with its suc­cess­ful ex­pan­sion spree at the close of the year and also 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 Poland, 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 was SEK 4,760 mil­lion dur­ing the year, a de­cline of 3.2 per cent as com­pared to the pre­vi­ous year when the num­ber was 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.

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