Kährs Group announced a profit of 31 million SEK ($2.98 million USD) in the fourth quarter of 2022, a 15% increase compared with the same period last year.
Kährs Group announced a profit of 31 million SEK ($2.98 million USD) in the fourth quarter of 2022, a 15% increase compared with the same period last year.
The Swedish flooring company’s net sales rose 8% to 937 million SEK ($89.95 million USD).
“During the fourth quarter, we continued to strengthen our positions in the residential segment in the Nordics and North America through a strong customer focus, availability and the launch of new innovative floor solutions,” President and CEO Johan Magnusson said in a statement. “On our markets in Europe outside of the Nordics, we are seeing clear signs of a slowdown, primarily caused by our retailers balancing their inventory levels against lower demand in 2023.”
Last month, the company announced layoffs of 125 employees and reduced capacities at all of its European factories.
“Our backlog decreased from a high level to pre-pandemic levels,” Magnusson added. “We are seeing clear signs of a slowdown in new construction and renovations in Europe at the same time as demand continues to be good in North America and in general in the commercial segment. The company has also continued to experience lower demand in Russia, according to Magnusson. Kährs previously announced its intent to divest its Russian business operations.
The full Kährs fourth quarter report can be found here.