Interim report for the Second Quarter of financial year 2006/2007 Second Quarter (December 2006 - February 2007) * KappAhl's net sales for the period amounted to MSEK 1,088 (1,026), an increase of 6.0 percent. * Operating profit amounted to MSEK 117 (88), an increase of 33 percent. This has been positively affected by non-recurring items of MSEK 13. * The gross margin was 57.7 percent (57.4) and the operating margin was 10.8 percent (8.6). * Profit after taxes amounted to MSEK 338 (19), which is equivalent to SEK 4.50 (0.25) per share. This has been positively affected by a tax revenue of MSEK 270. * Cash flow from operating activities totalled MSEK 104 (120). CEO comments on KappAhl's second quarter results The quarter showed continued increased sales of KappAhl's fashions. Previously we have reported that, as of this financial year, we will be focusing upon sales growth while maintaining our margins. The development of the quarter is a clear consequence of this strategy. We are above all glad for a highly successful first part to the quarter. We are also exceptionally proud of the continued improvement in profits, in which we have gone from a good position to an even better one. This is the consequence of continued sales successes and a disciplined cost development. In summary, KappAhl is continuing with its strategy of constant improvements and we now present the 18th consecutive quarter of improved profits. Christian W. Jansson President and CEO For further information, please contact Christian W. Jansson, President and CEO Tel. +46 (0)70 995 02 01 Håkan Westin, CFO Tel. +46 (0)70 471 56 64 KappAhl is a leading Nordic fashion chain with approximately 270 stores in Sweden, Norway, Finland and Poland. We design, market and sell clothes for the entire family but focus in particular on women between 30 and 50 years of age, shopping for the whole family. KappAhl's head office and distribution centre, which handles the distribution of goods to all stores, is located in Mölndal, just outside Gothenburg. KappAhl employs approximately 3,700 individuals, more than 90 percent of whom are women. During the financial year 2005/2006, KappAhl had sales of SEK 4.2 billion, with an operating profit of MSEK 530. KappAhl shares are listed on the Stockholm Stock Exchange. Further information about the company is available on www.kappahl.com and financial information is available on www.kappahl.com/ir. The full report with tables can be downloaded from the following link:
KappAhl: Sales are increasing in both new and existing stores
| Source: KappAhl Holding AB