STOCKMANN plc STOCK EXCHANGE RELEASE January 10, 2006, at 11.30


The Stockmann Group's preliminary sales in December grew by 7,2 per cent to EUR 205.3 million. Full-year preliminary sales came to EUR 1 851.4 million, up 6.7 per cent on the previous year.

The best sales growth in December, an increase of 15 per cent, was reported by the Department Store Division. Sales in Finland rose by 10 per cent and sales abroad by 34 per cent. Growth in Finland was given a boost by the new department store that was opened in the Jumbo Shopping Centre in Vantaa at the end of October, where sales got off to a good start. The strong growth in sales abroad has been driven by buoyant same-store sales growth in all market areas as well as by the expansion of the franchising store chains in Russia.

Seppälä's sales grew by 4 per cent. Owing to a change in the accounting policy for recording gift card transactions, December sales in Finland decreased by 2 per cent on the year-ago figure. Same-store sales in Finland were at the previous year's level. Sales abroad were up 56 per cent owing to the good growth in like-for-like sales and the expansion of the store network.

Stockmann Auto's sales decreased by 7 per cent. The sales trend was in line with the overall market: 10 per cent fewer new vehicles were registered in Finland in December than a year ago.

Hobby Hall's sales were down 17 per cent. Sales in Finland fell by 17 per cent and sales abroad by 8 per cent. Owing to the timing of marketing actions, which differed from last year, Hobby Hall's monthly sales compared with the previous year have fluctuated greatly during the autumn. Hobby Hall's aggregate sales in the last quarter diminished by 2 per cent. Stripping out from sales in 2004 the operations in Lithuania that were wound up at the beginning of last year, Hobby Hall's like-for-like sales in the last quarter were on a par with the previous year.

Of the Group's full-year sales, 82.2 per cent were generated in Finland and 17.8 per cent abroad. The share of international operations in Stockmann's sales increased by 3.9 percentage points in 2005.

The final sales figures for 2005 will be released on February 8, 2006, when the financial statements are published.

Sales figures in December and in January-December

20052004 perc.20052004perc.
MeMe 05/04MeMe05/04
Department Store105.696.19.9797.1746.16.8
Division, Finland Department Store 35.1 26.2 33.7 273.5 192.7 41.9 Division, international operations Department Store 140.7 122.3 15.0 1 070.7 938.8 14.0 Division, total
Stockmann Auto*28.830.9-7.0414.1437.1-5.3
Hobby Hall, Finland14.217.1 -17.3176.5180.4-2.2
Hobby Hall,1.51.6-8.434.034.0-0.1
international operations
Hobby Hall, total15.718.8 -16.5210.5214.4-1.8
Seppälä, Finland17.217.5-1.7132.4128.33.1
international operations
Seppälä, total20.119.43.8155.2143.78.0
Real estate +
others Operations in 165.8 161.7 2.5 1 521.0 1 492.8 1.9 Finland, total International 39.4 29.7 32.8 330.4 242.1 36.5 operations, total Stockmann total* 205.3 191.4 7.2 1 851.4 1 735.0 6.7

* 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-December were up 7 per cent and the consolidated sales were up 10 per cent.


Hannu Penttilä CEO

DISTRIBUTION Helsinki Stock Exchange Principal media