STOCKMANN'S PRELIMINARY SALES AND DEVELOPMENT OF THE OPERATING PROFIT IN 2008
8.1.2009 at 8.00
STOCKMANN'S PRELIMINARY SALES AND DEVELOPMENT OF THE OPERATING PROFIT IN
STOCKMANN GROUP'S PRELIMINARY SALES IN 2008 WERE EUR 2 265 MILLION. SALES
WERE UP 36 PER CENT. OPERATING PROFIT FOR THE FINAL QUARTER AND FOR THE
WHOLE YEAR WILL BE LOWER THAN IN 2007.
The Stockmann Group's preliminary sales total for December 2008 was EUR
247 million, down 5.3 per cent on the figure for December 2007.
Regarding sales of the divisions, Lindex's December sales were up by 1.7
per cent on the corresponding figure a year earlier. In 2007, Lindex's
sales began to be recorded for the Stockmann Group only as from 6
December. Lindex's sales were up 18.2 per cent in Finland and, in euro
terms, decreased 0.3 per cent abroad. Calculated in local currencies and
compared with the whole month's figures in 2007, Lindex's total sales in
December decreased by 2 per cent.
The Department Store Division's sales were down by 8.6 per cent. Sales
were down by 2.7 per cent in Finland and by 23.9 per cent abroad. The
strong decrease in sales abroad is mainly the result of the absence since
May of sales from the Stockmann department store in Moscow's Smolenski
Passage shopping centre due to the store's closure as a result of unlawful
action taken by the lessors, and also the fall in sales by the Baltic
department stores and the weakening of the Russian rouble. Sales by
Moscow's other Stockmann department stores grew in December by 2.3 per
cent in euro terms, or by 8.7 per cent in terms of the rouble.
Seppälä's December sales were down by 4.0 per cent. Sales were down by 2.8
per cent in Finland and 7.4 per cent abroad. In euro terms, December sales
grew slightly in Russia but declined in the Baltic states.
Hobby Hall's sales were down by 5.2 per cent. Sales decreased by 3.2 per
cent in Finland and 16.2 per cent abroad.
The preliminary 2008 sales total for the Group as a whole was up by 35.8
per cent to EUR 2 265 million. This robust growth was the result of Lindex
joining the Group in December 2007. Seppälä's 2008 sales grew by 4.5 per
cent, the Department Store Division's sales were unchanged from 2007 and
Hobby Hall's sales decreased by 7.5 per cent.
Sales in the final quarter of the year were less than anticipated due to
the strong deterioration in consumer confidence. Therefore the operating
profit for the final quarter will be down on the corresponding period a
year earlier. Also the full-year operating profit will be less than in
Towards the end of 2008, the Swedish krona has declined strongly against
the euro. On this account the krona-denominated loan taken in conjunction
with acquiring Lindex and the acquisition price of Lindex have decreased
correspondingly in the Group's balance sheet. A deferred tax liability
must be recorded in earnings on this. This additional deferred tax
liability has no effect on cash flow but it will have an adverse effect
when calculating the 2008 earnings per share (EPS).
Stockmann will publish its final 2008 sales in its financial statement
bulletin on 13 February 2009.
Stockmann's long-term financing for the coming years has been agreed on
according to the stock exchange release of 19 December 2008. The
arrangement implies that, as a result of the decline in interest rates,
the company's financing expenses in 2009 will reduce significantly
compared with 2008.
Sales figures in December
Department Store 32.5 42.7 -23.9 350.4 346.3 1.2
Department Store 140.2 153.4 -8.6 1 218.4 1 218.1 0.0
|Hobby Hall, Finland||14.6||15.1||-3.2||157.4||168.5||-6.6|
|Hobby Hall, total||16.9||17.9||-5.2||191.0||206.5||-7.5|
|Real estate +||0.1||0.1||8.4||0.8||0.8||-6.0|
Operations in 146.3 148.9 -1.7 1 224.8 1 171.5 4.5
International 101.1 112.3 -10.0 1 040.4 496.8 109.4
Stockmann total 247.4 261.2 -5.3 2 265.2 1 668.3 35.8
Sales by Lindex reported as from December 6, 2007.