Stuff chain Clas Ohlson has many friends among the public and among interested investors. Fixes tradition in Sweden has made the company almost cult status and success here has made the owners and management increasingly taken on international ambitions.
That means better opportunities for growth, but also higher risks. Inroads in the UK, for example, characterized by low profitability and taken longer than expected with a change in strategy last year with more smaller shops.
But the most interesting is the opening of a new store in Hamburg in the days to follow by another. According to CEO Klas Balkow the start has been good and the potential in the strong German market is obviously huge. Admittedly cost start-ups initially and store in Germany is partly behind the earnings decline from May to July which ended 75 million (106).
Total opened eight new stores during the period (net) and there may be a reason that sales growth in August is the first month in the second quarter of Clas Ohlson was so good that nine percent up.
for the stock market, therefore, plays a slightly lower earnings in the first quarter smaller role. Clas Ohlson has now begun a growth journey in Germany, which in itself will take several years before it will seriously make itself visible in the profit development more than marginally.
But the stock is still so positive and since so many Swedes are shareholders of the heart when it comes Clas Ohlson, this could mean that the stock will encumber future success long before they can be realized.
Today’s rise of over 3 percent could mean that Clas Ohlson now turned up again after the fall during the spring and summer. A look at the trend last year looks increasingly bottoms and the positive injection that the good news in the report seems to give can bring the stock up more than 160 SEK again.
And for the cautious is the good yield of almost 4 percent a security – the dividend should also be raised in the future, thanks to a strong financial position of the foundation.
Graph: share performance over the past year.
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