INTERIM REPORT FOR SEPTEMBER 2012–MAY 2013

CONTINUED GROWTH – NEGATIVE CURRENCY EFFECTS WEIGH DOWN EARNINGS

THIRD QUARTER MARCH–MAY 2013

• Group net sales amounted to SEK 178.2 M (168.7). The number of stores totaled 121, compared with 117 in the year-earlier period.
• Gross profit margin was 54.9% (57.5).
• Loss before depreciation, amortization and impairment amounted to SEK 6.0 M (profit: 5.2). Currency effects had a negative impact on earnings of SEK 7.2 M compared with the corresponding year-earlier quarter.
• Loss after tax was SEK 11.3 M (loss: 0.2).
• Earnings per share before and after dilution were a negative SEK 1.39 (neg: 0.03).

THE PERIOD SEPTEMBER 2012–MAY 2013

• Group net sales amounted to SEK 624.5 M (612.3).
• Gross profit margin was 56.5% (57.6).
• Profit before depreciation, amortization and impairment amounted to SEK 38.1 M (55.5). Currency effects had a negative impact on earnings of SEK 11.8 M compared with the corresponding year-earlier period.
• Profit after tax totaled SEK 18.8 M (33.5).
• Earnings per share before and after dilution totaled SEK 2.31 (4.27).

SIGNIFICANT EVENTS DURING THE QUARTER

• The Group’s total like-for-like sales increased 5% while sales in Swedish operations rose 6%, thus outperforming the market according to available sector statistics.
• During the quarter, the number of stores increased from 119 to 121. Contracts have been signed for the opening of a further eight stores in the period July to September 2013. This means that the store network of the Group will be extended from 117 to 128 stores during the fiscal year 2012/2013.

SIGNIFICANT EVENTS AFTER THE QUARTER

• The sales trend in June and to date has been positive and continued to outperform the corresponding month last year.
• “A healthy sales trend was posted, but negative currency effects and costs for future investments impacted the third quarter. We are working according to plan and opening eight new stores in the next few months. In parallel, we continue to actively identify new store locations in line with our goals for growth,” says Susanne Börjesson, CEO, Venue Retail Group.

CEO’S COMMENTS ON PERFORMANCE
The third quarter was yet another quarter in which the Venue Retail Group increased its income both in total and in terms of like-for-like sales. Despite the fact that neither the weather nor the market climate have been optimal for our branch of the retail sector, we continue to strengthen our market position with increased shares. This is an achievement that we are naturally pleased about.

Excluding negative currency effects, gross profit was in line with the preceding year. The margin was also impacted by increased campaign activation at Rizzo, which, of our chains, is the one most strongly impacted by the weather. Taken together, this meant that, net of slightly more than SEK 7 M in negative currency effects, underlying earnings for the quarter were stable compared with the corresponding year-earlier quarter. Furthermore, our long-term investments in operations will impact the cost trend.

Venue Retail Group has a clear focus on growth and will continue to grow while maintaining adequate cost control. In March, we announced that contracts were signed for the opening of eight new stores in the second half of the fiscal year and, since then, we have opened one Accent store in Skövde (at the end of March) and one Rizzo store in Frölundatorg, Gothenburg (at the end of May). Two additional stores are now contracted – a Rizzo store in Allum, outside Gothenburg, and an Accent store on Kungsgatan in central Stockholm.

During the quarter, one of our major leadership and sales training initiatives for all store managers and sales personnel in the Group was concluded. I look forward to continued improvements in the customer experience, which will contribute to raising the conversion rate and increasing sales in our stores moving forward.

In summing up the quarter, I note that sales continue to post a positive trend and outperform the market. Earnings were impacted by negative exchange-rate fluctuations against the NOK, an unfavorable effect from the translation of unrealized currency forward contracts to fair value compared with the year-earlier period and costs in line with the company’s strategy for investment in growth. Naturally, we are not satisfied with the results, however, given the factors impacting the quarter the outcome can nevertheless be considered acceptable. Looking ahead to the fourth quarter, currency forward contracts had a negative impact of SEK 18 M in the preceding year, and our current assessment is that the corresponding effect, based on current exchange rates, will be marginal in the final quarter of the year.

Our goals for growth remain high and we are conscientiously pursuing our plan to increase sales in existing stores and through increasing the number of stores. In parallel, we are actively seeking attractive new store locations. In the near future, we look forward to all the store openings scheduled for the fourth quarter.

Stockholm, June 27, 2013
Susanne Börjesson
CEO, Venue Retail Group

The information in this report is such that Venue Retail Group is obligated to publish under the Swedish Securities Market Act. The information was submitted for publishing on June 27, 2013 at 3:00 p.m. (CET).

FOR FURTHER INFORMATION, PLEASE CONTACT:
Susanne Börjesson, VD, Tel: +46 (0)8-508 99 253 or +46 (0)701-90 11 53
Staffan Gustafsson, CFO and Deputy CEO, Tel: +46 (0)8-508 99 244 or +46 (0)70-889 92 44
Mats Persson, Chairman of the Board, Tel: +46 (0)70-511 46 36