Third Quarter (March - May 2007) * KappAhl's net sales for the period amounted to MSEK 1,106 (1,029), an increase of 7.5 percent. * Operating profit amounted to MSEK 132 (120), an increase of 10.0 percent. This has been positively affected by non-recurring items of MSEK 3. * The gross margin was 62.3 (61.9) percent and the operating margin was 11.9 (11.7) percent. * Profit after taxes amounted to MSEK 79 (73), which is equivalent to SEK 1.05 (0.97) per share. * Cash flow from continuing operations totalled MSEK 136 (83). CEO comments on KappAhl's third quarter results We have now experienced yet another quarter affirming KappAhl's position as leading Nordic fashion chain. Sales increased in comparable stores by 6 percent and, in total, by 7.5 percent during the quarter. One contributing factor to these strong sales has been our investment in marketing our fashions, among other things through various campaigns focused around the concept"You look great!" This will continue in the autumn, as yet another very well-known person will be featured in advertising films for KappAhl. After a decline in the number of new stores opened in the spring, we are now starting to pick up the pace. From now on, our aim is to increase the total number of stores by 20-25 per year. This strategy also includes starting to plan for the opening of stores in one further country. It is also pleasing to be able to report that KappAhl's financial position is so stable that the Board of Directors has decided that the Company will increase the dividend goal to 70-100 percent of the profit after paid taxes, starting with this financial year. 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 Holding AB (publ) Box 303, 431 24 Mölndal 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: Significant increase in sales and new dividend policy
| Source: KappAhl Holding AB