Lindex Interim Report for the second quarter

1 December 2006–28 February 2007
First six months 2006/2007 (1 September 2006–28 February 2007)
• The Lindex Group’s sales amounted to SEK 2,554M (2,581), equivalent to a change of -1.1
(-1.5) per cent. Same store sales excluding the currency effect fell by 1.8 (+0.9) per cent.
• Closure costs for the stores in Germany are estimated to amount to SEK 90M, which is charged to the period’s profit. Approximately SEK 70M affects the cash flow. During the closure period, which will continue during the remainder of the financial year, current operating losses will be added.
• Operating profit excluding forecast closure costs relating to the German operation amounted to SEK 239M (308).
• Operating profit including forecast closure costs of SEK 90M amounted to SEK 149M (308). Profit after financial items amounted to SEK 143M (311). The EBITA result in the Group amounted to SEK 149M (308).
• The operating margin including forecast closure costs amounted to 5.8 (11.9) per cent and the gross margin to 59.3 (59.6) per cent. The EBITA margin in the Group amounted to 5.8 (11.9) per cent.
• Profit after tax amounted to SEK 80M (293), equivalent to SEK 1.20 (4.30) per share.

Second quarter 2006/2007 (1 December 2006–28 February 2007)
• The Lindex Group’s sales amounted to SEK 1,265M (1,274), equivalent to a change of -0.7
(-1.3) per cent. Same store sales excluding the currency effect fell by 2.1 (+1.7) per cent.
• Operating profit excluding forecast closure costs relating to the German operation amounted to SEK 107M (148).
• Operating profit including forecast closure costs of SEK 90M amounted to SEK 17M (148). Profit after financial items amounted to SEK 13M (151). The EBITA result in the Group amounted to SEK 17M (148).
• The operating margin including forecast closure costs amounted to 1.3 (11.6) per cent and the gross margin to 58.5 (58.6) per cent. The EBITA margin in the Group amounted to 1.3 (11.6) per cent.
• The result after tax amounted to SEK -17M (105), equivalent to SEK -0.20 (1.50) per share.

The CEO comments:
“Children’s Clothing and Lingerie have developed satisfactorily. Regarding Ladies’ Wear, however, the development has not been satisfactory. As a result of delays of several deliveries from some of our biggest purchasing markets we did not have sufficient spring fashion in the stores during January. Since the middle of February the stores have been well-stocked with spring fashion and our product range has been positively received by our customers.”

Göran Bille, President and CEO