Interim report for the second quarter of the financial year 2008/2009 - Increased sales in a difficult market

Second quarter (December 2008 - February 2009)

  * KappAhl's net sales (excluding VAT) for the period amounted to
    SEK 1,168 (1,132) million, an increase of 3.2 per cent.
  * The operating profit was SEK 65 (118) million.
  * The gross margin was 58.0 (59.6) per cent and the operating
    margin was 5.6 (10.4) per cent.
  * Profit after tax was SEK 34 (74) million, which is equivalent to
    SEK 0.45 (0.99) per share.
  * Cash flow from operating activities was SEK 133 (183) million.


First six months (September 2008 - February 2009)

  * KappAhl's net sales for the period amounted to SEK 2,434 (2,379)
    million, an increase of 2.3 per cent.
  * The operating profit was SEK 241 (324) million.
  * The gross margin was 61.3 (61.9) per cent and the operating
    margin was 9.9 (13.6) per cent.
  * Profit after tax was SEK 147 (212) million, which is equivalent
    to SEK 1.96 (2.83) per share.
  * Cash flow from operating activities was SEK 260 (379) million.


CEO's comments

It has been yet another difficult quarter with continued decline in
consumption. The lower demand will last for some time, which means we
expect the coming market trend to be weak, but with our business
concept we have good prospects of managing better than the industry
average.

We have also seen this confirmed by an increase in our market share.
Our offer gives a lot of value for money and customers appreciate
this even more in a recession.

Inventory control is crucial in a weak market and I am satisfied that
we are leaving the second quarter with well-balanced stocks.

Expansion initiatives are continuing according to plan. Approximately
30 stores will be opened in the 2008/2009 financial year.


For further information, please contact

Christian W. Jansson, President and Chief       Tel. +46 709 95 02 01
Executive Officer
Håkan Westin, Chief Financial Officer           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: