STOCKMANN plc STOCK EXCHANGE RELEASE January 9, 2007, at 10.45


The Stockmann Group's sales in December were EUR 173.1 million. Consolidated sales, eliminating the Zara business in Russia that was divested as from January 1, 2006, and the Stockmann Auto business that was transferred to new owners on March 1, 2006, were up one per cent.

In Finland, the December sales proved to be a disappointment at all the Group's divisions. Sales got off to a slow start in early December and picked up during the Christmas week, but particularly the sales on the day before Christmas Eve remained clearly lower than those of the same day a year ago. Owing to the few opening hours, sales on New Year's Eve remained below the year-ago figures. All the Group's divisions improved, however, their sales in international operations.

Sales by the Department Store Division grew by 3 per cent. In Finland, sales were on a par with the previous year but grew by 15 per cent in international operations. The growth in sales was especially vigorous in the Baltic department stores and the department stores in the Mega shopping centres in Moscow.

Seppälä's sales were on a par with the previous year. Sales were down 8 per cent in Finland whereas sales abroad increased by a hefty 47 per cent. The strong growth in sales in international operations was attributable to both good same-store sales growth and the expansion of the store network especially in Russia where there were already 16 Seppälä stores at the end of the year.

Hobby Hall's sales were down 15 per cent. Sales decreased by 19 per cent in Finland but were up 17 per cent abroad.

The Stockmann Group's preliminary full-year sales were EUR 1 553 million. Sales from continuing operations were up 7 per cent.

The preliminary full-year sales by the Department Store Division rose by 9 per cent, up 4 per cent in Finland and up 26 per cent abroad.

Seppälä's preliminary full-year sales grew by 2 per cent. Sales diminished by 7 per cent in Finland but increased by 51 per cent abroad.

Hobby Hall's preliminary full-year sales decreased by 5 per cent owing to the operating policy aiming at improved profitability. Sales were down 5 per cent in Finland and down 4 per cent abroad.

In spite of the weaker December sales than expected, the Group's earnings estimate is unchanged. Although the sales were lower than expected, the inventories at all the divisions are lower than in the previous year. The Group's profit before taxes is expected to be clearly better than in 2005. The Department Store Division and Hobby Hall are expected to report a higher operating profit than a year ago. Owing to the costs for the strong expansion as well as the decrease in sales in Finland, Seppälä's operating profit, excluding non-recurring items, is going to diminish but will remain good; Seppälä's profitability is at the same level as that of the best international fashion chains.

The Stockmann Group will release the final sales figures on February 8, 2007, when the financial statements are published.

Sales figures in December and in January-December

20062005 perc.20062005perc.
MeMe 06/05MeMe06/05
Department Store105.2 105.5-0.3832.2797.04.4
Division, Finland Department Store 34.5 30.1 14.8 286.8 227.0 26.3 Division, international operations* Department Store 139.7 135.6 3.1 1 119.0 1 024.1 9.3 Division, total*
Stockmann Auto*74.864.316.3
Hobby Hall, Finland11.514.2 -18.8167.2176.5-5.3
Hobby Hall,1.71.516.632.634.0-4.0
international operations
Hobby Hall, total13.215.7 -15.5199.8210.5-5.1
Seppälä, Finland15.917.2-7.6123.5132.4-6.7
Seppälä, international4.22.946.834.622.951.2
Seppälä, total20.120.10.2158.1155.21.8
Real estate + others0.10.1 -
Operations in Finland, 132.7 136.9-3.11 198.61 171.22.3
total* International 40.5 34.4 17.6 354.0 283.9 24.7 operations, total* Stockmann total* 173.1 171.4 1.0 1 552.6 1 455.0 6.7

* The figures for 2005 do not include the Zara business in Russia that was sold at the turn of the year nor the March-December sales by the Stockmann Auto division that was divested at the beginning of March 2006. If the sales in 2005 by Zara Russia and Stockmann Auto are included in the comparison figures, the change of sales in per cent was:

December January-December

Department Store Division,-1.64.9
international operations
Department Store Division, total-0.64.5
Operations in Finland, total-20.0-21.2
International operations, total2.77.2
Stockmann total-15.6-16.1


Hannu Penttilä CEO

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