KappAhl: New target for the operating margin

In light of developments the Board has today decided to raise the Group's target for the operating margin from 10 per cent. In future the operating margin will be 12 per cent over a business cycle with the minimum being 10 per cent. Other targets remain unchanged.

Operative targets

  • The number of stores will increase by 15-20 per year.
  • The operating margin will be 12 per cent over a business cycle with the minimum being 10 per cent.

KappAhl opened 20 new stores in 2005/2006 while 2 were closed. The operating margin for the past 12 months was 13.3 per cent.

Financial targets

  • The interest-bearing net debt should only exceed EBITDA temporarily by a multiple of three.
  • The interest coverage ratio should exceed a multiple of five.
  • The equity/assets ratio should exceed 20 per cent at the end of the 2007/2008 financial year.

For more information, please contact:
Christian W. Jansson, President and CEO, tel:
+46 709 95 02 01 
Håkan Westin, CFO, tel: 
+46 704 71 56 64

KappAhl is a leading Nordic fashion chain with about 270 stores in Sweden, Norway, Finland and Poland. We design, market and sell clothes for the entire family, but our primary target group is women aged 30 to 50 who buy for the entire family. KappAhl's head office and distribution centre, which handles transport to all stores, are located in Mölndal, on the outskirts of Göteborg, Sweden. KappAhl employs around 3,700 people and more than 90 per cent are women. During the 2005/2006 financial year, KappAhl reported sales of SEK 4.2 billion, with an operating profit of SEK 530 million. KappAhl is listed on the Stockholm Stock Exchange. Further information about the company is available on www.kappahl.com.

Press contacts

Corporate and Investor Relations
Charlotte Högberg, Head of Corporate Communications
Phone: +46 31 - 771 56 31
charlotte.hogberg@kappahl.com

Fashion and range
Monika Kostovska, Fashion Press and Sustainability Marketing Manager
Phone: +46 70 - 471 55 56
monika.kostovska@kappahl.com

Press loans
EK PR & Communications