KappAhl Interim report for the first quarter of the financial year 2008/2009. Increasing market share in a receding market

First quarter (September-November 2008)

* KappAhl's net sales (excluding VAT) for the period amounted to SEK
  1,266 (1,247) million, an increase of 1.5 per cent.
* The operating profit was SEK 176 (206) million.
* The gross margin was 64.3 (63.9) per cent and the operating margin
  was 13.9 (16.5) per cent.
* Profit after tax was SEK 113 (138) million, which is equivalent to
  SEK 1.51 (1.84) per share.
* Cash flow from operating activities was SEK 127 (196) million.

CEO's comments
It has been a difficult quarter with a distinct decline in demand.
Increasingly bad news in the autumn has made consumers more cautious.
This will continue for a period and we therefore expect the coming
market trend to be weak.

Since our business concept offers good value for money our prospects
of performing better than the industry average are good in this
market situation. KappAhl's market share has also increased slightly
during the quarter through better development of comparable stores
than the industry average, combined with new stores.



Inventory control is central in a weak market and I am satisfied that
we managed this in the autumn so that we are leaving the first
quarter with well-balanced stocks.
Expansion initiatives are continuing according to plan. Just over 30
stores will be opened in the 2008/2009 financial year, of which 15
has been opened during the first quarter.

For further information, please contact
Christian W. Jansson, CEO        Tel. +46 709 95 02 01
Håkan Westin, CFO                    Tel. +46 704 71 56 64


KappAhl Holding AB (publ), Box 303, SE-431 24 Mölndal.

KappAhl is a leading fashion chain with more than 300 stores and
4,500 employees in Sweden, Norway, Finland and Poland. KappAhl sells
value-for-money fashion with a wide appeal - to women, men and
children - and focuses in particular on women aged 30-50. All clothes
are from our own designers. In the twelve-month period ending 31
August 2008 KappAhl's net sales were SEK 4.6 billion and operating
profit was SEK 651 million. KappAhl is a listed company. In 1999
KappAhl was the first fashion chain to be environmentally certified.
Further information is available at www.kappahl.com/ir

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