Clas Ohlson slips on monthly sales miss as consumer trends weigh

Clas Ohlson AB

09/01/2023 10:49

** Shares in Swedish hardware store chain Clas Ohlson
 CLASb.ST  are down 1% on lower-than-expected December sales,
after falling as much as 4.6% in early trading
    ** It reports a 2% year-on-year rise in December sales to
SEK 1.23 bln ($117.3 mln), with organic sales unchanged
    ** Kepler Cheuvreux, via Swedbank Aktiellt equity research
service, says the December sales growth in local currencies is 4
percentage points below consensus and 3 pp below the brokerage's
estimate
    ** Clas Ohlson says it continues to be affected by
"consumers' more need-based consumption patterns" as well as
high purchasing prices, transportation costs and a weak Swedish
crown
    ** Kepler says this signals continued pressure on the
company's gross margin in its ongoing Q3
    ** Axel Karlsson, active trading manager at Nordnet, says
the share reaction indicates the market has taken on board the
company's comment on changed consumer behaviour
    ** The whole sector has seen difficulties lately facing a
"forthcoming recession", Karlsson adds
    ** The Clas Ohlson stock has lost around a third of its
value over the past 12 months
($1 = 10.4847 Swedish crowns)
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))