Clas Ohlson three-month report 2014/15

First quarter

  · Sales rose 9 % to 1,642 MSEK (1,507). In local currencies, sales rose 8 %
  · Operating profit increased by 10% to 102 MSEK (92)
  · Profit after tax increased by 13 % to 78 MSEK (69)
  · Earnings per share increased by 14 % to 1.24 SEK (1.09)
  · Cash flow from operating activities amounted to 171 MSEK (109)
  · As previously announced, the Board of Directors proposes that a dividend of
4.75 SEK per share (4.25) be approved by the Annual General Meeting
Events after the end of the reporting period

  · Sales in August increased by 9 % to 611 MSEK (561). In local currencies,
sales rose 7 %
  · Clas Ohlson’s Annual Report and Sustainability Report for 2013/14 were
published in August
  · This year’s product catalogue was published in Sweden, Norway, Finland and
the UK in August, featuring a range of new products

CEO’s comments

“I am again pleased to report a positive sales and earnings trend this quarter.
Our market position is solid, and it is particularly gratifying that our
operations outside the Nordic region grew by a full 38 per cent. Sales in August
also continued to display a favourable trend in all markets.

We can note that the positive performance is continuing with a 4 per cent sales
increase in comparable units, making this our strongest first quarter for a long
time. The total sales increase for the quarter was 9 per cent. Our omni-channel
strategy is generating results with increased sales in all sales channels,
particularly in our online shopping channel that reported sales growth of more
than 40 per cent.

Our gross margin for the quarter was slightly lower than in the year-earlier
period, primarily due to exchange-rate effects linked to the company’s forward
contracts. Despite this, operating profit increased by more than 10 per cent due
to the positive sales trend in comparable units. We are also proud that we now
have more than one million members in our Club Clas loyalty program in Sweden.
Furthermore, during the quarter we launched attractive new products in our range
that were well received by our customers. For example, we saw the positive
effects of our initiative to add paint to the product range, a long sought-after
product group by our customers.

The second quarter has started well, with a 9 per cent sales increase in August,
despite a negative calendar effect of about 2 per cent. Next week we will
introduce Clas Office, our offering to corporate customers, in Sweden and
Norway. Later this autumn we will launch Club Clas in Finland. In addition, we
are continuing our international expansion with plans for at least one
additional store in the Gulf region and one to two in Germany during the next
calendar year” says Klas Balkow, President and CEO of Clas Ohlson AB.

The financial year 2014/15 comprises the period from 1 May 2014 to 30 April
2015.

Press and analyst conference

A press and analyst conference will be held on Wednesday, 10 September at 08:00
a.m. at Clas Ohlson’s store at Drottninggatan 53 in Stockholm and can also be
followed on about.clasohlson.com or www.financialhearings.com

For more information please contact:
Sara Kraft Westrell, Director of Information and IR, phone +46 (0)247-649 13

The information in this press release comprises information that Clas Ohlson AB
(publ) is required to disclose pursuant to the Swedish Securities Market Act
and/or the Swedish Financial Instruments Trading Act. The information was
released for publication at 07:00 CET on September 10, 2014.
Clas Ohlson was founded in 1918 as a mail order business based in Insjön,
Dalarna, Sweden. Today, the company is trading in five countries offering
outstanding service via its approx. 200 stores, web shop, catalogue and
telephone sales channels. Clas Ohlson helps its customers solve every day
practical problems with a wide range of affordable products in five product
areas: Hardware, Electrical, Home, Multimedia and Leisure. The company is listed
on the Nasdaq OMX Nordic Exchange, has sales of approx. 6.8 billion SEK and over
4,700 employees. Visit Clas Ohlson at www.clasohlson.com.