KappAhl Q3 report: Weak sales in May “In working on our

“In working on our plan for KappAhl we are now in a phase where we choose not to let up on the pace. With continued good cost control we are converting our stores and investing in important development projects.” Johan Åberg, President and CEO. Read the full CEO statement in the report. xx +-------------------------+--------+-----+------+---------+---------+---------+ | |Third   |Nine   months (September-May)| | |quarter | | | |(March | | | |-May) | | +-------------------------+--------+-----+------+---------+---------+---------+ | |2014/201|2013/|Change|2013/2014|2013/2014|Change | | |5 |2014 | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ |Net sales, SEK million |1 132 |1 201|-69 |3 439 |3 558 |-119 | | | | | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ |Operating profit, SEK   |42 |101 |-59 |146 |203 |-57 | |million | | | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ |Gross margin, % |61.7 |62,7 |-1,0 |61.0 |61,4 |-0.4 | +-------------------------+--------+-----+------+---------+---------+---------+ |Operating margin, % |3,7 |8,4 |-4,7 |4,2 |5,7 |-1.5 | +-------------------------+--------+-----+------+---------+---------+---------+ |Profit after tax, SEK   |23 |42 |-19 |81 |97 |-16 | |million | | | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ |Earnings per share after |0.30 |0,56 |-0,26 |1.06 |1,29 |-0.23 | |  dilution, SEK (Note 1) | | | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ |Cash flow from operating |194 |271 |-77 |357 |345 |12 | |activities, SEK   million| | | | | | | +-------------------------+--------+-----+------+---------+---------+---------+ · Net sales in comparable stores decreased by 5.9 % during the quarter and 2.9 % in September-May. The decrease in the quarter is mainly due to poor sales in May, following cold weather and negative calendar effects. · The operating margin over the rolling twelve months is 5.2 (5.5) %. · The cash flow continues to be strong and net debt historically low. · In total 24 stores have been converted to the new store concept. · The second Newbie Store and the first Hampton Republic 27 store will open in November. 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 released for public disclosure on 23 June 2015, at 07.30 am. This interim report has been translated to English from the Swedish report. In case of any inconsistency the Swedish version shall prevail. For further information Johan Åberg, President and CEO, phone 46 706 09 99 73, johan.aberg@kappahl.com Anders Düring, Chief Financial Officer, phone 46 708 88 77 33, anders.during@kappahl.com Company information and photos Charlotte Högberg, Head Corporate Communications, phone 46 704 71 56 31, charlotte.hogberg@kappahl.com KappAhl was founded in 1953 and is a leading fashion chain in the Nordic region with nearly 400 stores in Sweden, Norway, Finland and Poland together with Shop Online. KappAhl offers good-value fashion of its own design to a wide range of consumers – women, men and children – with a particular focus on women in the mid-life age range. 24% of the range is sustainability labelled. In 2013/2014, the turnover was SEK 4.7 billion and the number of employees approx. 4,000. KappAhl is quoted on NASDAQ Stockholm. For more information, please visit www.kappahl.com.