Report for the first six months of the financial year 2009/2010 - Continuing positive trend

Second quarter (December 2009 - February 2010)


  * KappAhl's net sales (excluding VAT) for the period amounted to SEK 1,256
    (1,168) million, an increase of 7.5 per cent.

  * The operating profit was SEK 76 (65) million.

  * The gross margin was 57.7 (58.0) per cent and the operating margin was 6.1
    (5.6) per cent.

  * Profit after tax was SEK 34 (34) million, which is equivalent to SEK 0.45
    (0.45) per share.

  * Cash flow from operating activities was SEK 159 (133) million.


First six months (September 2009 - February 2010)


  * KappAhl's net sales for the period amounted to SEK 2,600 (2,434) million, an
    increase of 6.8 per cent.

  * The operating profit was SEK 283 (241) million.

  * The gross margin was 61.5 (61.3) per cent and the operating margin was 10.9
    (9.9) per cent.

  * Profit after tax was SEK 212 (147) million, which is equivalent to SEK 2.83
    (1.96) per share.

  * Cash flow from operating activities was SEK 292 (260) million.


CEO's comments
During the quarter we have performed a good increase of the result. The period
started off well but with a weaker sale of spring collections at the end. We can
establish that the third quarter has started off much stronger than last year.

We have passed a milestone in the Group's development in that sales on a yearly
basis now have reached 5 billion in the past year. It is particularly gratifying
that growth is taking place with good profitability through retaining a strong
gross profit in combination with cost control.

At the same time we see that we are mentioned more often in the fashion press,
which is a proof that our concept is growing even stronger.


For further information, please contact
Christian W. Jansson, President and Chief Executive Officer, tel. +46 709
95 02 01
Håkan Westin, Chief Financial Officer, tel. 0704-71 56 64

KappAhlis a leading fashion chain with almost 350 stores and 4 300 employees in
Sweden, Norway, Finland, Poland and the Czech Republic. KappAhl sells
value-for-money fashion with a wide appeal - to women, men and children - and
focuses in particular on women aged 30-50 with families. All clothes are from
our own designers. In 1999 KappAhl was the first fashion chain to be
environmentally certified. In the 2008/2009 financial year KappAhl's net sales
were about SEK 5 billion and operating profit SEK 525 million. KappAhl is listed
on Nasdaq OMX Stockholm. More information is available at www.kappahl.com
<http://www.kappahl.com/>.

KappAhl AB (publ) discloses the information provided here pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 23 March 2010 at 07.30 a.m.

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



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