Edition:
United Kingdom

Clas Ohlson: Q2 Underlying Operating Profit Down At SEK 124 Million


Wednesday, 5 Dec 2018 

Dec 5 (Reuters) - Clas Ohlson AB ::CLAS OHLSON SIX-MONTH REPORT 2018/19.Q2 SALES INCREASED BY 8% TO 2,157 MSEK (1,999), ORGANIC SALES UP 4% AND UP 1% IN COMPARABLE UNITS.Q2 OPERATING PROFIT SEK 33 MILLION VERSUS SEK 125 MILLION YEAR AGO.STORE NETWORK IN UK AND GERMANY WILL BE CLOSED.Q2 UNDERLYING OPERATING PROFIT AMOUNTED TO 124 MSEK (140).BOARD HAS DECIDED ON A NEW DIRECTION FOR CLAS OHLSON'S MARKET PRESENCE THAT GOING FORWARD WILL FOCUS ON ONLINE SHOPPING.SALES IN NOVEMBER INCREASED BY 10% TO 979 MSEK (889)..MARKET CLIMATE FOR RETAIL REMAINS CHALLENGING WITH A FAST RATE OF CHANGE."WE SEE OPPORTUNITIES FOR FURTHER IMPROVING PROFITABILITY IN FINLAND".BUSINESS IN UK IS CONTINUING TO INCUR SIGNIFICANT LOSSES DESPITE MEASURES IN RECENT YEARS TO OPTIMISE STORE NETWORK.CLOSURE OF STORE NETWORK IN UK AND GERMANY WILL AFFECT APPROXIMATELY 150 EMPLOYEES AND TOTAL SETTLEMENT COST IS ESTIMATED AT MAXIMUM 210 MSEK.CO100+ ACTION PROGRAMME IS PROGRESSING ACCORDING TO PLAN.