KappAhl Half Year Report 2016: Good Profitability and Strong Financial Position

Regulatory News:

"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.

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.

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

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