KappAhl Q3: Strong gross margin

Report for the third quarter of the financial year 2009/2010

STRONG GROSS MARGIN

Third quarter (March 2010 - May 2010)

   ·    KappAhl's net sales (excluding VAT) for the period amounted to SEK
1,221 (1,206) million, an increase of 1.2 per cent.

   ·    The operating profit was SEK 112 (109) million.

   ·    The gross margin was 64.6 (60.4) per cent and the operating margin was
9.2 (9.0) per cent.

   ·    Profit after tax was SEK 65 (62) million, which is equivalent to SEK
0.87 (0.83) per share.

   ·    Cash flow from operating activities was SEK -7 (144) million.

Nine months (September 2009 - May 2010)

   ·    KappAhl's net sales for the period amounted to SEK 3,821 (3,640)
million, an increase of 5.0 per cent.

   ·    The operating profit was SEK 395 (350) million.

   ·    The gross margin was 62.5 (61.0) per cent and the operating margin was
10.3 (9.6) per cent.

   ·    Profit after tax was SEK 277 (209) million, which is equivalent to SEK
3.69 (2.79) per share.

   ·    Cash flow from operating activities was SEK 285 (404) million.

CEO's comments

There was a strong start to the quarter but in the latter half sales were
considerably weaker than expected. This was affected by a cold spring and weak
consumption.

A very strong gross margin means that our earnings nevertheless increased
compared with the previous year. This shows that we can perform well even if
everything is not going as we want, which is a mark of a strong concept.

Growth from new stores continues to be good, making a positive contribution to
our earnings trend, and at the same time we have further strengthened our
financial position.

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

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KappAhl is a leading fashion chain with almost 350 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 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 can be found at www.kappahl.com.

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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 June 2010 at 07.30 a.m.



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