KappAhl: Operating margin strengthened further

First Quarter (September - November 2007)

  * KappAhl's net sales for the period, excluding VAT, amounted to
    MSEK 1,247 (1,189), an increase of 4.9 percent.
  * Operating profit amounted to MSEK 206 (186), an increase of 10.8
    percent.
  * The gross margin was 63.9 percent (62.2) and the operating margin
    was 16.5 percent (15.6).
  * Profit after taxes amounted to MSEK 138 (123), which is
    equivalent to SEK 1.84
    (1.64) per share.
  * Cash flow from operating activities totalled MSEK 196 (209).


CEO's comments

For our first quarter, we are able to present both a strong gross
margin and a strong operating margin of 16.5 percent. We are content,
if not completely satisfied, with the development of sales during the
quarter. The strengthening of the margins is satisfactory, at the
same time as we had ambitions for stronger growth.

The expansion of stores is important and, during the quarter, we have
opened eight new stores. There also exist contracts for 30 or so new
stores for both the current year and future years. Most of the new
stores for the current year will enter operation during the latter
part of the year.

We continue to believe in the favourable development of private
economy, which will naturally also benefit KappAhl's customer group.
Christian W. Jansson
CEO


For further information, please contact
Christian W. Jansson, CEO                           Tel. +46 (0)70
995 02 01
Håkan Westin, Chief Financial Officer            Tel. +46 (0)70
471 56 64

KappAhl is a leading Nordic fashion chain with approximately 3,800
employees and close to 300 stores in Sweden, Norway, Finland and
Poland. KappAhl designs, markets and sells value-for-money fashion
with a wide appeal, and focuses in particular on women aged 30 to 50
with family. The head office and distribution centre are located in
Mölndal, in the outskirts of Gothenburg. In the 12 month period that
ended on 31 August 2007, KappAhl's net sales were SEK 4.5 billion and
operating profit was SEK 618 million. KappAhl is listed on the OMX
Nordic Exchange in Stockholm. 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
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