Stockmann - Company Announcement

Stockmann Group's new profit guidance for 2014, revenue in September and the Crazy Days campaign in October

Helsinki, Finland, 2014-10-14 16:30 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 14.10.2014 at 17:30 EET 

Stockmann's on-going strategy process aims to improve the Group's
competitiveness and profitability in the long-term, but the outcome of the
process will not yet be visible in the 2014 earnings. The Stockmann department
stores' Crazy Days campaign achieved a relatively good sales result in October,
but both revenue and operating result in September were low in all businesses. 

Due to the weaker-than-estimated performance, particularly in Seppälä's
business, and unstable outlook for the rest of 2014, Stockmann's profit
guidance for the year has been changed. Stockmann now expects that the Group's
operating result, excluding non-recurring items, will be negative in 2014. 

Previous profit guidance for 2014 (published on 12 June 2014):
Stockmann estimates that the Group's euro-denominated revenue in 2014 will
decline on 2013. The Group's operating profit in 2014 is expected to be
significantly weaker than in 2013. 

Crazy Days campaign's revenue in October 2014

Revenue from the Crazy Days campaign, which took place between 8 and 12 October
in all department stores and the Stockmann online store, was on the previous
year's level at comparable exchange rates. Revenue from the online business in
Finland continued to grow strongly, and all department stores also achieved a
good result compared to the weak sales trend during the summer and early autumn
of the year. 

The campaign's revenue was up by 5 per cent in the Baltic countries. In Russia
rouble-denominated revenue was up 4 per cent, but euro-denominated revenue was
down 10 per cent. In Finland revenue was down 2 per cent, though sales grew by
33 per cent in the online store. In total, euro-denominated revenue was down 4
per cent due to weak currency exchange rate of the rouble. 

Revenue in September 2014

The Stockmann Group's revenue was down 13.9 per cent on the previous year and
amounted to EUR 133.3 million in September 2014. The weak exchange rates of the
Russian rouble, Swedish krona and Norwegian krone continued to negatively
affect euro-denominated revenue. Revenue at comparable exchange rates was down
10.6 per cent. 

The Department Store Division's revenue was up in the Baltic countries, but
down in Russia and in Finland. The division's euro-denominated revenue
decreased by 13.6 per cent; it was down 13.1 per cent in Finland and 14.6 per
cent in international operations. 

Lindex's revenue was down by 6.3 per cent at comparable exchange rates. Due to
currency effects, euro-denominated revenue was down 11.8 per cent. Seppälä's
revenue was down 30.1 per cent. In Russia the number of stores has halved from
the previous year, and the goal is to close the remaining 16 stores during 2014
and 2015. The Fashion Chain Division's total revenue decreased by 14.3 per
cent; it was down 13.7 per cent in Finland and 14.5 per cent in international
operations. 

Revenue (exclusive of VAT) in September

                                       9/2014  Change-%
                                    EUR mill.          
Department Store Division, Finland       50.1     -13.1
Department Store Division,               23.7     -14.6
international operations                               
Department Store Division, total         73.8     -13.6
Fashion Chain Division, Finland          10.2     -13.7
Fashion Chain Division,                  49.3     -14.5
international operations                               
Fashion Chain Division, total            59.4     -14.3
Unallocated                               0.0          
Operations in Finland, total             60.3     -13.1
International operations, total          73.0     -14.5
Stockmann total                         133.3     -13.9


Revenue (exclusive of VAT) in January-September

                                  1-9/2014                    Change-%  Change-%
                                 EUR mill.            excl. terminated          
                                                          franchising*          
Department Store Division,           501.8                       -10.8     -11.3
 Finland                                                                        
Department Store Division,           247.7                        -9.8      -9.8
international operations                                                        
Department Store Division,           749.5                       -10.5     -10.8
 total                                                                          
Fashion Chain Division, Finland      100.0                        -9.6      -9.6
Fashion Chain Division,              446.3                        -6.8      -6.8
international operations                                                        
Fashion Chain Division, total        546.3                        -7.3      -7.3
Unallocated                            0.2                                      
Operations in Finland, total         601.9                       -10.5     -10.9
International operations, total      694.0                        -7.9      -7.9
Stockmann total                    1 295.9                        -9.1      -9.3


Change-%: change compared with the corresponding period of the previous year.
*Change compared with the revenue excluding the Zara franchising operations in
Finland which were terminated on 1 March 2013. 

Further information:
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com


STOCKMANN plc

Nora Malin
Director, Corporate Communications


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