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Published
Apr 14, 2016
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KappAhl reports good profitability in Q2

Published
Apr 14, 2016

KappAhl, the Swedish high street fashion brand, saw a continued strong financial position in the second quarter, the company said on April 14.

KappAhl


Sales increased by 1% in local currencies, but declined by 1.5% when restated in SEK, down to SEK 1.11bn. This was due to the weak Norwegian currency, which reduced total sales by about SEK 30m. The company's operating profit increased substantially, up from SEK 9m in 2014/15 to SEK 31m in 2015/16. The company also had a strong gross margin in the period, up to 58.6% from 57.8% the previous year.

KappAhl President Danny Feltmann said the company is continuing to invest in an IT platform and in store conversions. Christmas fell during the quarter (December-February) and Feltmann said soft packages with dressing gowns and pyjamas sold well, and the same applied to the Hampton Republic 27 lifestyle collection.

"We note that it is becoming increasingly tough to earn money in December. Contributory factors are Black Friday and ever earlier clearance sales. We see that more consumers plan their purchases on this basis," Feltmann said.

He added: "In January the first KappAhl Sustainable Design Contest was announced; a competition for fashion and textile students who want to be involved in developing sustainable future design solutions. Interest in the contest was great. The winner, to be presented in April, will then work together with KappAhl to put their idea into practice."

KappAhl is currently looking to recruit a new Vice President for Assortment & Design, as Carina Ladow will leave the role at the end of this month.

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