INTERIM REPORT

REPORT FOR FIRST QUARTER 2012/2013

Increased sales and strong gross margin
– women’s assortment back at a good sales level

                                     Quarter 1 (SEP-NOV)
                                    2012/2013  2011/2012  Change
Net sales, SEK million                  1 245      1 193      52
Operating profit excluding capital        104         16      88
gain on real property, SEK million
Operating profit/loss, SEK million        181         16     165
Gross profit margin, %                   63,3       58,4
Operating margin excluding capital        8,3        1,3
gain, %
Profit after tax, SEK million             115        -11     126
Earnings per share, SEK (Note 1)         0,51      -0,04
Cash flow from operating                   79         30      49
activities, SEK million

  · Net sales increased by 4.4 per cent for the quarter. Of this, the increase
in comparable stores was 3.0 per cent.
  · Gross margin improved by 4.9 percentage points.
  · Costs increased marginally, despite 14 more stores.
  · Sale of real property led to a capital gain of SEK 77 million.
  · Equity/assets ratio increased to 40.8 per cent, including the rights issue
approved by the Annual General Meeting.

“It’s a little too early to say this is a new positive trend for the company but
it’s quite clear there are strong signals indicating we are on the right path.”
Johan Åberg, President and CEO. Read the full CEO statement in the enclosed
report.

There will be a telephone conference and webcast for analysts, media and
investors today at 9.00. To participate in the conference call +44 203 364 5371
about 5 minutes before the start. The telephone conference can also be followed
via a webcast at www.kappahl.com/presentations, where the webcast will be saved
for later viewing.



For further information:
Johan Åberg / President and CEO, tel. +46 706 09 99 73
Håkan Westin / CFO, tel. +46 704 71 56 64

For pictures and other information:
Annette Björklund / Head of public relations, tel. +46 704 71 55 42,
annette.bjorklund@kappahl.com

The information in this interim report is disclosed by KappAhl AB (publ)
pursuant to the Securities Market Act and/or the Financial Instruments Trading
Act. The information was submitted for publication on 16 January 2013 at 07.30
a.m.

KappAhl was established in 1953 and is a leading fashion chain soon with 400
stores and 4 500 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. KappAhl was the first fashion chain to
achieve environmental certification in 1999. In the 2011/2012 financial year
KappAhl's net sales were SEK 4.6 billion. KappAhl is listed on NASDAQ OMX
Stockholm. More information can be found at www.kappahl.com.