Report for first half year 2010/2011 - Sales below plan

Second quarter
(December 2010 - February 2011)

  * KappAhl's net sales for the period amounted to SEK 1,188 (1,256) million, a
    decrease of 5.4 per cent.
  * The operating profit was SEK 16 (76) million.
  * The gross margin was 57.2 (57.7) per cent and the operating margin was 1.3
    (6.1) per cent.
  * Profit after tax was SEK 1 (34) million, which is equivalent to SEK 0.01
    (0.45) per share.
  * Cash flow from operating activities was SEK -12 (159) million.

First six months
(September 2010 - February 2011)

  * KappAhl's net sales for the period amounted to SEK 2,529 (2,600) million, a
    decrease of 2.7 per cent
  * The operating profit was SEK 162 (283) million.
  * The gross margin was 60.5 (61.5) per cent and the operating margin was 6.4
    (10.9) per cent.
  * Profit after tax was SEK 96 (212) million, which is equivalent to SEK 1.28
    (2.83) per share.
  * Cash flow from operating activities was SEK 48 (292) million.


CEO's comments
Sales are clearly lower than we had planned for. The market was weak during the
quarter, probably due to increased energy costs and rising interest rates. In
this environment we have not managed to perform at our peak either.

Increased production costs are a concern. Cotton prices have risen sharply and
in addition to this there are capacity shortages and rising wages, which can put
pressure on gross margins in the industry. Development of wages is something
that will likely continue, but the other two subjects should ease later this
year.

The offer needs to be strengthened both regarding assortment and marketing
efforts. We know we can do a lot better and are determined to show it for time
to come.

Christian W. Jansson, President and Chief Executive Officer

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. +46 704 71 56 64

KappAhl is a leading fashion chain with 360 stores and 4 800 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 2009/2010 financial year KappAhl's net sales were about SEK
5.1 billion and operating profit SEK 551 million. KappAhl is listed on Nasdaq
OMX Stockholm. More information is available at 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 30 March 2011 at 7.30 a.m.



The presentation of the report and a teleconference will be held today, for
analysts, the media and investors, at 09.00 (CET) at Summit, Grev Turegatan 30
in Stockholm. The report will be presented by Christian W. Jansson, President
and CEO at KappAhl and Håkan Westin, CFO at KappAhl. The presentation will be
held in English and will also be live webcasted at
www.kappahl.com/presentations.

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


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