KappAhl Full Year Report: Strong Improvement in Operating Profit

Regulatory News:

"KappAhl has delivered a good year... With a more stable and effective organisation our gross margin is stronger, our cost level is lower and the equity/assets ratio has improved.”

Johan Åberg, President and CEO. Read the full CEO statement in the report enclosed .

Translated Translation Disclaimers updated Sept. 15, 2014 DS/se

• Operating profit excluding non-recurring items increased during the quarter by 62 per cent and for the full year by 46 per cent.
• Net sales increased by 3.2 per cent for the quarter and decreased by 0.2 per cent for the full year.
• Sales in comparable stores increased during the quarter by 2.9 per cent and for the full year by 0.3 per cent.
• The gross margin improved by 2.3 per centage points for the quarter and 1.6 per centage points for the full year.
• Restructuring costs of SEK 23 million relating to the closure of unprofitable stores in Finland and Poland strain the fourthquarter.
• The Board of Directors proposes a dividend of SEK 0.75 per share

För ytterligare information kontakta

Johan Åberg, President and CEO, phone 46 706-09 99 73, johan.aberg@kappahl.com

Anders Düring, VP and CFO, phone 46 708-88 77 33, anders.during@kappahl.com

Company information and photos

Charlotte Högberg, Head Public Relations, phone 46 704-71 56 31, charlotte.hogberg@kappahl.com

The information in this year-end report is disclosed by KappAhl AB (publ) pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for public disclosure on 9 October 2014 at 07.30.

KappAhl , founded in 1953, is one of the Nordic region’s leading fashion retailers with close to 400 stores in Sweden, Norway, Finland and Poland, and Shop Online. KappAhl offers value-for-money fashion of its own design to the many people – men, women and children, with a special focus on women in the prime of life. 18% of the range is sustainability labeled. In 2013/2014, sales were SEK 4.87billion and the number of employees approximately 4,500. KappAhl is quoted on Nasdaq OMX Stockholm. For more information, go to www.kappahl.com.

About Us

KappAhl, founded in 1953, is one of the Nordic region’s leading fashion retailers with close to 400 stores in Sweden, Norway, Finland and Poland, and Shop Online. KappAhl offers value-for-money fashion of its own design to the many people – men, women and children, with a special focus on women in the prime of life. 18% of the range is sustainability labeled. In 2012/2013, sales were SEK 4.8 billion and the number of employees approximately 4,500. KappAhl is quoted on Nasdaq OMX Stockholm. For more information, go to http://www.kappahl.com.

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