Clas Ohlson slips as earnings still hurt by high costs

Clas Ohlson AB

07/12/2022 09:03

** Shares in Swedish hardware store chain Clas Ohlson
 CLASb.ST  fall 1.2%, paring losses after an earlier 7.7% drop,
following lower-than-expected Q2 operating profit
    ** It reports operating profit of SEK 112 million ($10.75
million), SEK 11 million below a consensus provided by
Swedbank's equity research service Aktiellt
    ** The company says the result was hit by high input and
transport costs, and weaker Swedish crown
    ** According to Aktiellt, the lower operating profit was
explained by gross profit below prognosis, but the cost control
was better than expected
    ** The company says it will reduce costs by laying off 85
full-time employees and disposing of some of its IT systems,
leading to cost savings and reduced depreciation of about SEK
110 million, with full effect in 2023/24
    ** Kepler, which provides analysis to Aktiellt, notes the
stock underperformed in the weeks leading up to the report and
repeats its "hold" recommendation
($1 = 10.4210 Swedish crowns)
 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))