Kährs reports that net sales decreased 31% in the in the third quarter ending September 30, 2023, primarily due to continued weak demand in residential in the business segments, Residential Nordics and Europe.
The company reports profitability was maintained by a continued strong gross margin and good cost control.
Kährs President and CEO Johan Magnusson comments: "The lower demand in the residential segment of Kährs’ main markets in Europe is continuing to have a negative impact on sales also in the third quarter. Decreased consumption, driven by a decrease in disposable income combined with higher interest expenses for housing consumers, are having a negative impact on consumers’ willingness to purchase interiors products.
However, our profitability-enhancing measures and investments, in new, innovative product offers and an improved customer experience, continue to generate results and our gross profit margins are significantly higher than the record levels set in 2022.
Kährs continues to invest in new customer channels, to broaden its selection of sustainable innovative product offers and invest in our digital customer journey in cooperation with our customers in all distribution channels.
There is clear growth potential in the commercial segment, primarily in the subsegment for so-called public buildings, where investments have already begun to increase. There is also a large need for renovation and increased new construction in the long term. By maintaining strong gross margins, managing costs, and investing in our relationships with customers and partners, we are well equipped to meet coming challenges and opportunities and continue our efforts to reach our goal of being the leading actor in flooring solutions in selected markets in Europe and the USA."