KappAhl (STO: KAHL) ended a string of disappointing quarterly results releases ended with what could be classified as a much better than feared Q3 report. The company really needed to get its act together as it is rather heavily leveraged and markets had been speculating of upcoming rights issue. KappAhl ’s management said there is absolutely no need to raise capital. The industry is in the middle of a weak market according to the CEO but KappAhl believes its long term outlook is good and it will continue to expand; next to Austria in 2012.
Net sales in Q3 were around 1.27 billion, up slightly from Q2. Gross and net margin were down 60.1 and 4.6 per cent respectively but operating cashflow printed positive 144 million after being negative on Q2. KappAhl, like H&M yesterday, commented on the high cotton price and wage pressures. Investors relief in the performance was displayed with a 16% advance in today’s trading.
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