Stockmann - Inside information

Stockmann Group's sales in December and for full year 2016

STOCKMANN plc, Company Announcement 13.1.2017 at 13:30 EET

The Stockmann Group’s sales in December amounted to EUR 133.1 million in
continuing product areas and businesses, which is 8.8 per cent lower than a year
ago.

The Group’s sales in continuing product areas and businesses for the full year
2016 amounted to EUR 1 165.0 million, and the total sales including Hobby Hall
were EUR 1 239.5 million. Sales in continuing product areas and businesses were
down by 5.3 per cent.

“In 2016, we focused on improving Stockmann’s profitability. We renewed the
product and brand selections in our department stores, made refurbishments in
the premises, particularly in the Helsinki city centre flagship store, and
reduced the number of price-driven campaigns. Although the changes are reflected
in the decline in product sales, the gross margin has improved at the same time,
and service and rental income from our partners has grown. Sales developed well
in the Lindex fashion chain, particularly during the spring,” says CEO Lauri
Veijalainen.

“The Christmas trade was most successful in our Baltic department stores, where
the fashion sales generated very good growth. As a whole, the Christmas trade
was down compared with the previous year, but this sales development, together
with the significant cost savings made, are sufficient to reach our profit
guidance. The Stockmann Group will achieve a slightly positive operating result
in 2016 after two loss-making years.”

Sales in December 2016

The Stockmann Group's sales in December were down by 8.8 per cent and amounted
to EUR 133.1 million in continuing product areas and businesses.

Stockmann Retail's sales in continuing product areas and businesses were down by
9.3 per cent. Sales were up 4.0 per cent in the Baltic countries. Sales grew in
the department stores in Tallinn and Riga. Sales were down by 11.2 per cent in
Finland. Sales declined most in the Oulu department store, which will be closed
in January 2017.

Lindex's sales were down by 6.7 per cent at comparable exchange rates. The
Christmas trade did not reach its target particularly in Finland and in Sweden.
Due to the weak Swedish krona, euro-denominated sales were down by 8.5 per cent.

Sales in 2016

The Stockmann Group's sales for the full year 2016 were down by 5.3 per cent and
amounted to EUR 1 165.5 million in continuing product areas and businesses.

Stockmann Retail's sales in continuing product areas and businesses were down by
9.5 per cent. Sales were down by 10.9 per cent in Finland and by 1.9 per cent in
the Baltic countries. Excluding the Oulu department store, the sales decline
slowed down slightly after the summer.

Lindex's sales were down by 1.4 per cent at comparable exchange rates. Sales
grew during the first and second quarter of the year, but were down during the
second half of the year. Euro-denominated sales were down by 3.0 per cent or 1.4
per cent without the stores in Russia.

Sales (exclusive of VAT) in December

                         12/2016  Change-%*  1-12/2016  Change-%*
                       EUR mill.             EUR mill.
Stockmann Retail,           54.4      -11.2      449.6      -10.9
Finland
Stockmann Retail,            9.6        4.0       86.5       -1.9
international
operations
Stockmann Retail,           64.0       -9.3      536.1       -9.5
total
Lindex, total               69.1       -8.5      628.8       -1.4
Group, Finland, total       62.3      -11.6      520.0       -9.9
Group, international        70.8       -6.3      645.0       -1.2
operations, total
Stockmann Group,           133.1       -8.8    1 165.0       -5.3
total*

*Continuing product areas and businesses i.e. excluding Russian retail
operations, Seppälä, Hobby Hall, Stockmann Beauty, the airport store and the
product areas the company has withdrawn from in department stores (electronics,
books, sports equipment, toys and pet supplies).

Stockmann’s total sales in December 2016 were EUR 140.9 million, including Hobby
Hall. In December 2015, sales were EUR 173.7 million, also including Russian
retail operations and discontinued product areas in department stores.

Change-%: change compared with the corresponding period of the previous year.
The Group's sales figures include merchandise sales exclusive of VAT in stores
and department stores. The figures do not include other operating income such as
rental income or service fees.

Further information:
Lauri Veijalainen, CEO, tel. +358 9 121 5062
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com

STOCKMANN plc

Lauri Veijalainen
CEO

Distribution:
Nasdaq Helsinki
Principal media