STOCKMANN plc STOCK EXCHANGE RELEASE April 11, 2005, at 11.30


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 per cent.

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- December

MeMe 05/04MeMe05/04Me
Department Store52.659.788159.8164.297746.1
Division, Finland Department Store 18.8 12.9 146 53.6 35.5 151 192.7 Division, international operations Department Store 71.4 72.7 98 213.4 199.6 107 938.8 Division, total
Stockmann Auto*32.139.58196.5117.982437.1
Hobby Hall, Finland15.717.29148.846.0106180.4
Hobby Hall,3.73.311311.710.611034.0
international operations
Hobby Hall, total19.420.59460.556.6107214.4
Seppälä, Finland8.27.710626.025.9100128.3
international operations
Seppälä, total9.68.611230.028.6105143.7
Real estate +
others Operations in 108.7 124.2 87 331.2 354.2 94 1 492.8 Finland, total International 23.9 17.1 140 69.4 48.8 142 242.1 operations, total 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.


Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media