POSTPONING THE CRAZY DAYS CAMPAIGN TO APRIL LOWERED THE STOCKMANN GROUP’S SALES IN MARCH
STOCKMANN plc STOCK EXCHANGE RELEASE April 11, 2005, at 11.30
POSTPONING THE CRAZY DAYS CAMPAIGN TO APRIL LOWERED THE STOCKMANN GROUP’S
SALES IN MARCH
The Stockmann Group’s sales in March were EUR 132.6 million, down 6 per
cent on last year’s figure, due primarily to the fact that the Crazy Days
campaign was run in April instead of straddling March. Sales in
January-March amounted to EUR 400.6 million, on a par with the previous
year. As previously estimated, the Group’s first-quarter result will come
in below the previous year’s figure.
The Stockmann Group’s sales in March were EUR 132.6 million, or 6 per cent
smaller than in March of last year, as forecast. The main reason for the
drop in sales is that the Department Store Division’s Crazy Days campaign
was carried out completely in April, whereas a year earlier the opening
day of the campaign was in March. In addition, in March there were two
days of sales less than last year because Easter fell in March. Over the
entire first quarter, in Finland there were three days of sales less than
in the previous year. The Group’s first-quarter sales were at the previous
year’s level. The Crazy Days campaign in the department stores in Finland
was a success and the sales grew by 18 per cent on the previous year.
The best sales increase in March was reported by Seppälä, up 12 per cent.
Growth in Finland was 6 per cent, as against 61 per cent abroad. The
strong growth in sales abroad was attributable partly to the growth of the
store network in Russia and the Baltic countries as well as to the sound
increase in like-for-like sales. Seppälä’s first-quarter sales were up 5
The Department Store Division’s sales in March were down 2 per cent. Sales
in Finland contracted by 12 per cent and sales abroad by 46 per cent. The
strong increase in sales outside Finland was due to the growth of the
network of department stores and boutiques in Russia as well as the good
like-for-like growth in the Baltic countries. The Department Store
Division’s first-quarter sales were up 7 per cent.
Hobby Hall’s sales in March decreased by 6 per cent. Sales in Finland were
down 9 per cent due to the fewer days of sales in March, but sales outside
Finland were up 13 per cent – despite the winding up of operations in
Lithuania – owing to the good trend in the Estonian and Latvian markets.
Hobby Hall’s sales increased by 7 per cent in January-March.
Stockmann Auto’s sales in March decreased by 19 per cent. The lower sales
figure was due entirely to the transfer of the Volkswagen-Audi dealership
in Herttoniemi to Kesko Corporation as from July 1, 2004. Stockmann Auto’s
sales in January-March were down 18 per cent. Comparable sales, stripping
out the Herttoniemi dealership, grew by 4 per cent in March and,
similarly, by 4 per cent in January-March.
The factors weakening first-quarter earnings were the running of the Crazy
Days campaign completely in April (a departure from last year), the
transfer of the Herttoniemi Autotalo dealership to Kesko Corporation as
from July 1, 2004 and the fact that in the first quarter there were three
days of sales less in Finland in the first quarter than a year ago. For
these reasons, as previously estimated the Group’s first-quarter total
earnings will be smaller than the figure a year earlier. The full-year
earnings estimate is that the Stockmann Group is aiming for higher
earnings than in 2004.
Sales figures in March and in January-March
March January-March January-
2005 2004 Ind. 2005 2004 Ind. 2004
Me Me 05/04 Me Me 05/04 Me
Department Store 52.6 59.7 88 159.8 164.2 97 746.1
Department Store 18.8 12.9 146 53.6 35.5 151 192.7
Department Store 71.4 72.7 98 213.4 199.6 107 938.8
Stockmann Auto* 32.1 39.5 81 96.5 117.9 82 437.1
Hobby Hall, Finland 15.7 17.2 91 48.8 46.0 106 180.4
Hobby Hall, 3.7 3.3 113 11.7 10.6 110 34.0
Hobby Hall, total 19.4 20.5 94 60.5 56.6 107 214.4
Seppälä, Finland 8.2 7.7 106 26.0 25.9 100 128.3
Seppälä, 1.3 0.8 161 4.1 2.7 151 15.4
Seppälä, total 9.6 8.6 112 30.0 28.6 105 143.7
Real estate + 0.1 0.0 0.2 0.2 0.9
Operations in 108.7 124.2 87 331.2 354.2 94 1 492.8
International 23.9 17.1 140 69.4 48.8 142 242.1
Stockmann total* 132.6 141.3 94 400.6 402.9 99 1 735.0
* With the elimination of the sales by the unit transferred to Kesko on
July 1, 2004, from Stockmann Auto’s comparison figure for 2004, the
division’s sales in January-March were up 4 per cent and the consolidated
sales were up 6 per cent.