KappAhl: A highly successful year

Fourth Quarter (June - August 2007)

  * KappAhl's net sales for the period, excluding VAT, amounted to
    MSEK 1,090 (1,010), an increase of 7.9 percent.
  * Operating profit amounted to MSEK 183 (173), an increase of 5,8
    percent.
    Excluding the previous year's non-recurring item, profits
    improved by 24,5 percent.
  * The gross margin was 62.2 percent (63.3 excluding one-off item
    60.7) and the operating margin was 16,8 percent (17.1 excluding
    one-off item 14,6).
  * Profit after taxes amounted to MSEK 119 (116), which is
    equivalent to SEK 1.59
    (1.54) per share.
  * Cash flow from continuing operations totalled MSEK 220 (117).


CEO's comments

Once again, we can present both the best quarter and the best year
ever.

Our marketing campaign, focused around the concept You Look Great,
has contributed to a positive sales development, with an increase for
comparable stores slightly above the goals we set at the beginning of
the year. We are very proud of the near 8 percent growth recorded for
the quarter but most proud of the fact that customers appreciate our
fashion.

We also have one of the industry's best gross margins and have
improved this further. Our clear focus on continuous cost controls
has contributed to our ability to keep cost increases on a lower
level than sales growth. Taken together, this has contributed to
further improved profits and the best fourth quarter ever.

In light of the strong development, the Board proposes doubling the
dividend payment to SEK 5.00 per share.
Christian W. Jansson
President and CEO

For further information, please contact

Christian W. Jansson, President and CEO                   Tel. +46
(0)70 995 02 01
Håkan Westin, CFO
Tel. +46 (0)70 471 56 64


KappAhl is a leading Nordic fashion chain with approximately 270
stores in Sweden, Norway, Finland and Poland. We design, market and
sell clothes for the entire family, but focus in particular on women
between 30 and 50 years of age, shopping for the whole family.
KappAhl's head office and distribution centre, which handles the
distribution of goods to all stores, is located in Mölndal, just
outside Gothenburg. KappAhl employs approximately 3,700 individuals,
more than 90 percent of whom are women. During the financial year
2006/2007, KappAhl had sales of SEK 4.5 billion, with an operating
profit of MSEK 618. KappAhl shares are listed on the Stockholm Stock
Exchange. Further information about the company is available on
www.kappahl.com and financial information is available on
www.kappahl.com/ir.

The full report with tables can be downloaded from the following
link: