Increased market share for Hemtex in first half of 2006, but second half starts with weaker July sales

During the first half of 2006 Hemtex, the leading home textile retail chain in the Nordic region, noted a strong sales trend and further strengthened its position in the Swedish market for home textiles. This is confirmed by the latest figures from the market research company GfK, which show that Hemtex’s market share rose to 31.0 percent for the period January – June 2006. This is an increase of 5.5 percentage points compared with the year-earlier period.

“During a strong first half of the year, we gained further market shares in Sweden - the most positive development can be seen in terry towels of all sizes and in pillows/cushions, which shows that Hemtex’s efforts to broaden the product line and develop inspiring and exciting stores remain successful” says Hemtex President, Anders Jansson. Hot summer weakens sales in July In the beginning of the second half of 2006, due to the unusually hot summer, the sales trend has been weaker. During July, Hemtex’s total consumer sales (including franchise stores) declined somewhat compared with the same month in the preceding year. This weaker trend may also be viewed against the backdrop of very strong sales during July 2005, when sales increased by 24.5 percent. Compared with the corresponding period in the preceding year, Hemtex has added 13 new stores. Hemtex’s interim report for the period May 2006 – July 2006 will be published on Tuesday, September 5, 2006.