KappAhl half year report 2016: Good profitability and strong financial position

“The second quarter outcome shows a continued strong financial position. The
strong gross margin, as in the previous quarter, is a result of our pricing and
campaign strategy. Lower overhead expenses in the quarter also contributed to
the sound operating profit.”

Read the full CEO statement in the attached report.

  · The Group’s sales increased during the quarter by 1.0 per cent in local
currencies. Restated in SEK, sales decreased by 1.5 per cent.
  · The gross margin was positively affected by continued changes in
pricing/campaign strategy.
  · Overhead expenses are 3.6 per cent lower than the previous year.
  · The operating profit improved to SEK 31 (9) million.

                                  Second               Half year (Sep-Feb)
                                  quarter
                                    (Dec
                                   -Feb)
                          2015/201  2014/  Change  2015/2016  2014/2015  Change
                                 6   2015
Net sales, SEK million        1116   1133     -17       2281       2307     -26
Operating profit/loss,          31      9      22        148        104      44
SEK   million
Gross margin, %               58.6   57.8     0.8       62.2       60.6     1.6
Operating margin, %            2.8    0.8     2.0        6.5        4.5     2.0
Profit after tax, SEK           14     -3    17.0         97       58.0    39.0
million
Earnings per share after      0.18  -0,04    0.22       1.26       0.77    0.50
  dilution, SEK (note 1)
Cash flow from operating        15     95     -80        104        163     -59
  activities, SEK
millions

The information in this interim report is disclosed by KappAhl AB (publ)
pursuant to the Securities Market Act and/or the Financial Instruments Trading
Act. The information was submitted for publication on 14 April 2016 at 07.30
am.


For further information
Danny Feltmann, President & CEO. Tel 46 31 771 5661.
Anders Düring, Chief Financial Officer. Tel 46 708 887 733.

For photos and company information
Charlotte Högberg, Head Corporate Communications, Tel 46 704 71 56 31,
charlotte.hogberg@kappahl.com
KappAhl was founded in Gothenburg in 1953 and is a leading fashion chain in the
Nordic region with close to 380 stores in Sweden, Norway, Finland and Poland.
Our business idea is to offer value-for-money fashion of our own design to the
many people. Sustainability-labeled fashion accounts for roughly one quarter of
the range. Sales for 2014/2015 totaled SEK 4.6 billion and the company has
approx. 4,000 employees in eight countries. KappAhl is quoted on Nasdaq
Stockholm. More information is available at www.kappahl.com