Despite a small decline in turnover, KappAhl still earns good money in Norway.
The year that passed was a challenging year for KappAhl. Despite this, the wholly owned subsidiary of KappAhl AB kept the turnover well over the billion.
KappAhl AS, which sells clothes for women, men and children in Norway through 99 own stores and on the net, had sales of NOK 1,189 million in 2017/2018 (deviating fiscal year, September-August reported), against NOK 1,270 million in 2016/2017.
“Effects of fewer visitors to our stores and fierce competition within the industry and from other industries contributed to a decline in revenue”, the annual report states.
At the same time, the company’s targeted efforts to follow the customers in the ongoing behavioral change included the development of new technology and services.
“Our e-commerce has increased substantially during the year and over half of our e-commerce is delivered via” Click & Collect “in store and also contributes to more sales in stores,” it says.
The operating profit for the period amounted to NOK 59.42 million, compared with NOK 62.81 million in 2016/2017, while the annual result ended at NOK 46.76 million, compared with NOK 49.28 million.
Risk and uncertainty
“Among the most prominent business risks is competition among fashion chains and the ability to identify and adapt to ever-changing fashion trends,” the annual report says.
The financial risk is handled through the parent company in Sweden.
«The company is exposed to interest rate risk and currency risk in its ordinary business. The company has revenues and costs in various currencies, and thus the company is exposed to currency fluctuations that affect the operating result “, it says.
In the financial year that ended in August this year, the turnover of KappAhl AB ended at SEK 4.76 billion, a decrease of 3.2 per cent from last year, Finansavisen wrote last October.
“The year that went by was a challenging year for KappAhl. Effects from fewer visits to stores and fierce competition contributed to a sales decline of 3.2 per cent, ”says CEO Göran Bille in the annual report.
The largest owner of the company is the Swedish family company Mellby Gård, with an ownership interest of 20.5 per cent.
The KappAhl chain has 369 stores in Sweden, Norway, Finland, Poland and the UK.