STOCKMANN GROUP'S SALES IN JULY 2004

STOCKMANN plc STOCK EXCHANGE RELEASE August 11, 2004, at 12.00

STOCKMANN GROUP'S SALES IN JULY 2004

In July, the Stockmann Group's sales grew by 5 per cent and totalled EUR 124.8 million. Sales by the Department Store Division and Seppälä continued their strong growth both in Finland and abroad, whereas sales by the Vehicle Division and Hobby Hall were clearly down on the previous year. The Department Store Division's total sales growth was 17 per cent. In Finland the growth was 6 per cent and abroad 80 per cent. Compared with the previous year, the sales growth abroad is attributed to the new department stores in Riga and Moscow and the new Zara store opened in Moscow in June. Seppälä's sales grew in Finland by 10 per cent and abroad by 83 per cent. The strong sales growth abroad is attributable to the stores opened in Riga, Latvia, during autumn 2003 and spring 2004, Russia's first Seppälä store which was opened in Moscow, and the positive sales development in Estonia as well.

The clear decline in the Vehicle Division's sales is due to the transfer of the VW-Audi car dealership in Herttoniemi, Helsinki, to the Kesko Group effective July 1, 2004. This car dealership accounted for about 22 per cent of the annual sales of Stockmann's Vehicle Division.

For distance retail, July is the most inactive month of the year. Earlier over 30 per cent of Hobby Hall's sales in July has been piled up in the division's stores. After the termination of the comparison period, four Hobby Hall stores have been closed down, and this has influenced the sales in July to decline by 22 per cent. The decrease in the sales abroad is partly due also to the tightened-up credit policy.

Sales figures in July and in January-July

July January-July January- December

20042003Ind.20042003Ind.2003
MeMe 04/03MeMe04/03Me
Department Store53.550.4106387.7364.6106706.7
Division, Finland* Department Store 15.8 8.8 180 93.6 66.9 140 134.4 Division, international operations Department Store 69.3 59.2 117 481.4 431.5 112 841.0 Division, total*
Vehicle Division32.736.889277.0287.396480.4
Hobby Hall7.49.18193.199.394192.3
Division, Finland Hobby Hall 0.7 1.2 55 18.5 22.3 83 43.5 Division, international operations Hobby Hall 8.0 10.3 78 111.6 121.6 92 235.7 Division, total Seppälä Division, 13.1 11.9 110 69.1 64.8 107 120.3 Finland Seppälä Division, 1.6 0.9 183 7.6 4.7 161 10.0 international operations Seppälä Division, 14.7 12.7 115 76.8 69.6 110 130.3 total Real estate + 0.1 0.1 124 0.5 0.5 106 0.9 others Operations in 106.8 108.2 99 827.5 816.5 101 1 500.6 Finland, total* International 18.1 10.9 166 119.8 94.0 127 187.8 operations, total Stockmann total* 124.8 119.1 105 947.3 910.5 104 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 3 per cent.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media





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