DECLINED SALES FOR KAPPAHL SEPT-OCT 2011
KappAhl's sales during the period of September to October 2011 is expected to decline by 13 percent in comparable stores compared to the same period last year. Meanwhile, gross margin is expected to drop 4.5 percentages.
- The trend we have seen during the summer continues. The market is weak due to cautious consumers and our offer does not fully attract our customers the way it should. We adapt our business by adjustments in the assortment and cost saving in line what we previously communicated. We see results of the savings already now while our offer will take some months to adjust, says Christian W. Jansson, President and CEO.
As previously announced, a new share issue of approximately SEK 600 million, with preferential rights for the company's shareholders, is carried out in order to strengthen KappAhl's financial position and creating prerequisites for long term growth and profitability.
KappAhl AB (publ) discloses the information provided here pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 31 October 2011 at 7.30 a.m.
For further information, please contact:
Christian W. Jansson, President and Chief Executive Officer, phone +46 709 95 02 01 Håkan Westin, Chief Financial Officer, phone +46 704 71 56 64
For images and other information:
Annette Björklund, Head Public Relations, phone +46 704 71 55 42, e-mail firstname.lastname@example.org
KappAhl is a leading Nordic fashion chain with more than 370 stores and close to 4 900 co-workers in Sweden, Norway, Finland, Poland and the Czech Republic. KappAhl designs, markets and sells value-for-money fashion and focus in particular on women 30-50 years of age. During the financial year 2010/2011, KappAhl had sales of close to SEK 5 billion, with an operating profit of SEK 222 million. KappAhl shares are listed on the Nasdaq OMX Stockholm. In 1999, KappAhl was the first fashion chain to receive environmental management standard certification. Further information is available at www.kappahl.com
Source: KappAhl via Thomson Reuters ONE