Unlike last year, Stockmann's Crazy Days campaign in the department stores in Finland was run completely in March, which clearly contracted the Group's sales in April.

The Group's sales were down 22 per cent, amounting to EUR 111.2 million.

Sales by the Department Store Division decreased by 23 per cent. Sales were down 37 per cent in Finland and up 18 per cent abroad. Stockmann's department stores abroad carried out the Crazy Days campaign in April, like last year. The campaign was highly successful in all market areas. The new department store in Moscow, opened in February, also contributed to the sales development.

The reported sales by Hobby Hall were down 26 per cent in April. In April the company implemented a new information system. This involved changing the principle of posting sales, so that orders by customers are posted as sales later than in the previous information system. This change appears as a one-time reduction of sales in the transition month. The effect of the change of posting principle is about EUR 5 million in April. Using the previous posting principle, sales by Hobby Hall in April would have reached the previous year's level. Reported sales were down 25 per cent in Finland and 27 per cent abroad.

Sales by Seppälä decreased by 5 per cent. Sales were down 11 per cent in Finland and up 17 per cent abroad. Sales abroad grew vigorously in Lithuania and Russia. After the outstanding March, with sales by Seppälä up 25 per cent, the sales in April were a disappointment. Spring fashions were largely sold as early as March, as the weather conditions for spring fashions were favourable.

Sales figures in April

April January-April January- December

20072006 perc.20072006perc.2006
MeMe 07/06MeMe07/06Me
Department Store53.584.3 -36.5265.2257.92.8832.2
Division, Finland Department Store 33.6 28.5 17.9 103.2 90.8 13.7 286.9 Division, international operations Department Store 87.2 112.9 -22.8 368.4 348.6 5.7 1 119.0 Division, total
Hobby Hall, Finland10.514.1 -25.355.057.3-4.1167.2
Hobby Hall,2.23.0 -27.213.312.38.532.6
international operations
Hobby Hall, total12.717.1 -25.768.369.6-1.9199.8
Seppälä, Finland7.99.0 -11.433.034.6-4.6123.5
Seppälä, international3.32.817.012.89.534.834.6
Seppälä, total11.311.8-4.645.944.23.9158.1
Real estate + others0.
Operations in Finland,72.1 107.5 -32.9353.5350.11.01 123.7
total* International 39.1 34.3 13.9 129.4 112.6 14.9 354.1 operations, total Stockmann total* 111.2 141.8 -21.6 482.9 462.7 4.4 1 477.8

* The figures do not include the sales by the Stockmann Auto division that was divested at the beginning of March 2006. If the sales by Stockmann Auto in January-February 2006 are included in the comparison figures, the change of sales in per cent was:

January-April 2007 change perc.

Operations in Finland, total-16.8
Stockmann total-10.2


Hannu Penttilä CEO

DISTRIBUTION Helsinki Stock Exchange Principal media