STOCKMANN GROUP'S SALES IN AUGUST 2004

STOCKMANN plc STOCK EXCHANGE RELEASE September 10, 2004, at 9.30

STOCKMANN GROUP'S SALES IN AUGUST 2004

In August, the Stockmann Group's sales amounted to EUR 131.2 million, down 4 per cent on August 2003. The decrease was attributable to downsizing operations in the Vehicle Division and Hobby Hall. Sales by Seppälä and the Department Store Division grew clearly.

The best sales growth was reported by Seppälä whose sales were up 18 per cent. The division's sales were up 13 per cent in Finland and 71 per cent abroad. The strong sales growth abroad was contributed by the increased number of stores in Latvia, the chain's first store in Russia opened in spring 2004, and the good sales growth in Estonia too. The Department Store Division's sales were up 8 per cent. The growth was 1 per cent in Finland and 47 per cent abroad. The strong sales growth abroad was contributed by the new department stores opened in Riga in October 2003 and in Moscow in April 2004 as well as the second Zara store opened in Moscow in June 2004.

Sales by the Vehicle Division were down 20 per cent. The whole decrease is due to the missing sales by the Volkswagen-Audi outlet in Herttoniemi which was transferred to Kesko's VV-Auto on July 1, 2004. Sales by the rest of the division's units grew by 5 per cent. Hobby Hall's sales were down 22 per cent. A significant part of this decrease is attributable to the closing down of four stores during the autumn 2003 and the first part of 2004 as well as the decrease in sales in Latvia and Lithuania due to the tightened-up credit policy.

Sales figures in August and in January-August

August January-August January- December

20042003Ind.20042003Ind.2003
MeMe 04/03MeMe04/03Me
Department Store55.054.3101442.7418.9106706.7
Division, Finland* Department Store 14.7 10.0 147 108.3 76.9 141 134.4 Division, international operations Department Store 69.7 64.2 108 551.0 495.8 111 841.0 Division, total*
Vehicle Division32.540.580309.5327.894480.4
Hobby Hall14.217.680107.3116.992192.3
Division, Finland Hobby Hall 2.4 3.5 69 20.9 25.9 81 43.5 Division, international operations Hobby Hall 16.6 21.2 78 128.2 142.7 90 235.7 Division, total Seppälä Division, 10.7 9.5 113 79.9 74.3 107 120.3 Finland Seppälä Division, 1.6 0.9 171 9.2 5.7 163 10.0 international operations Seppälä Division, 12.3 10.4 118 89.1 80.0 111 130.3 total Real estate + 0.1 0.1 0.6 0.6 0.9 others Operations in 112.5 122.0 92 940.1 938.5 100 1 500.6 Finland, total* International 18.7 14.4 129 138.4 108.4 128 187.8 operations, total Stockmann total* 131.2 136.4 96 1 078.5 1 046.9 103 1 688.4

* The agency sales of newspaper and magazine subscriptions that were divested in May have been eliminated from the sales figures for 2003. These sales stand for EUR 10.2 million for the whole year 2003. The consolidated sales growth regardless of this elimination was 2 per cent.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media





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