Lindex Interim Report for the first quarter

1 September 2006–30 November 2006

• The Lindex Group’s sales amounted to SEK 1,289M (1,307), equivalent to a change of -1.4
(-1.7) per cent. In local currencies total sales increased with 0.9 per cent. Same store sales fell by 3.8 per cent (3.4), in local currencies -1.4 per cent (0.2).

• Operating profit amounted to SEK 132M (160) and profit after financial items to SEK 130M (160). The EBITA result in the Group amounted to SEK 132M (160).

• The operating margin amounted to 10.2 (12.2) per cent. The gross margin amounted to 60.1 (60.5) per cent. The EBITA margin in the Group amounted to 10.2 (12.2) per cent.

• Profit after tax amounted to SEK 97M (188), equivalent to SEK 1.40 (2.70) per share.

After the reporting period
• Following the unsatisfactory development of the company’s operation in Germany, Lindex has decided to sell its German stores.

The CEO comments:
“In the Swedish market, where we have progressed farthest in our brand development and where the confidence in Lindex as a fashion company is greatest, sales have been good. A strong brand makes us less influenced by external factors such as the weather. We will, therefore, continue our investment aimed at further strengthening our positions as a fashion company.”

“We have had a positive development within Children’s Wear and Lingerie while the development within Ladies’ Wear has not been satisfactory. Among other things we had a lack of change-over garments between the summer and autumn seasons at the beginning of the autumn, which affected sales.”

“The operation in Germany has not achieved the set targets and we are now of the opinion that the return on new investments has a significantly greater potential in Eastern Europe. Our establishments in the Baltic States have been successful and we will open stores in the Czech Republic during the next financial year.”

Göran Bille, President and CEO