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UPDATE 1-Kappahl warns of slow sales, sees big drop in Q1 profit yr/yr
November 13, 2017 / 7:28 AM / 9 days ago

UPDATE 1-Kappahl warns of slow sales, sees big drop in Q1 profit yr/yr

(Adds background, detail)

Nov 13 (Reuters) - Swedish clothing retailer Kappahl said on Monday that its fiscal first quarter sales had been below expectations and that its quarterly operating profit would fall far short of the year-ago profit.

* Says estimates that operating profit for fiscal Q1 2017/2018 will be approximately 100 mln SEK vs 145 mln for Q1 2016/2017

* Analysts had expected an operating profit of 148 mln SEK for the quarter, which ends in November, according to Thomson Reuters data based on three estimates

* “Sales during the quarter has not lived up to our expectations so far. This is mainly depending on our price- and campaign strategy that has not given the effect we wished for in the tough market climate during the fall,” Kappahl CEO Danny Feltmann said in a statement

* “A lower consumption in general during the warm fall has resulted in reduced traffic,” Kappahl said

* Kappahl shares have been very strong for the past three months, rising around 40 pct

* Kappahl rose 12 pct on October 12 after posting stronger than expected Q4 earnings​ Source text for Eikon: (Reporting by Johannes Hellstrom, Editing by Helena Soderpalm)

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