Investors

Interim report January 1 – June 30, 2011

Odd Molly International AB (publ)
Stockholm, Sweden, August 19, 2011

STABLE QUARTER AND ONGOING DEVELOPMENT WORK

January 1 - June 30, 2011

• Net sales amounted to SEK 149.7 million (161.6)
• The gross profit margin rose to 57.0 percent (56.8)
• Operating profit amounted to SEK 16.0 million (19.4), corresponding to an operating margin of 10.7 percent (12.0)
• Net profit was SEK 10.6 million (12.4)
• Earnings per share amounted to SEK 1.85 (2.16) (based on the average number of shares)

April 1 - June 30, 2011

• Net sales rose to SEK 28.6 million (11.1)
• The gross profit margin was 59.3 percent (72.7)
• The operating loss was SEK -7.4 million (-12.5)
• The net loss was SEK -5.4 million     (-10.3)
• Earnings per share amounted to SEK -0.94 (-1.79)
• In April Odd Molly reported an order value for the fall/winter 2011 collections of SEK 140 million

Events during the period

• Christina Tillman is stepping down as CEO of Odd Molly and her successor, Anna Attemark, was named. The CEO transition will take place by December

Events after the end of the period

• Odd Molly showed its spring and summer 2012 collection during Fashion Week in Stockholm at Berns

CEO’s comment

Sales during the second quarter were in line with our plan and include the last spring and summer merchandise. The first fall shipment, pre-fall, was also invoiced during the quarter, in contrast with 2010, when the corresponding collection was shipped in the third quarter.

Stable gross margin - but development work is needed
We are pleased with the gross profit margin, which is stable at 57 percent, but are carefully monitoring operating costs, which rose compared with last year mainly due to a higher number of stores, an expanded organization and increased distribution costs.

The most important thing for Odd Molly is still our work to develop and balance future collections, but it will take time before the changes we have made have their full effect. As part of this transition, we hired a category manager and vice president with responsibility for the design process and product range, Jennie Högstedt Björk, who has extensive experience from similar work at H&M.

Sales campaign is under way in a challenging market
The sales campaign for the spring/summer 2012 is fully under way, but there is no getting around the fact that we are seeing a generally difficult market throughout the world. The company’s strategic focus is on our closest and largest markets, as an element of which we held Odd Molly’s big fashion show in August at home again this year after several seasons in New York. We have also introduced a new organizational structure within the sales department to improve direct contact with our external retailers.

At Modegalan last week we received an award in the category "Decor Concept of the Year" for the interior design of our concept stores. We are very pleased and proud of this award, since it is a relatively new area for us.

As we have previously announced, I will step down as CEO of the company after seven years. I am very happy that Anna Attemark, who is now development manager at H&M’s buying department, will be my successor in December. Until then it's full speed ahead as usual.

Christina Tillman, Chief Executive Officer

Please find the full report in the attached pdf file.

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