Stockmann - Company Announcement

Stockmann Group's revenue in May and revised outlook for 2014

Helsinki, Finland, 2014-06-12 12:00 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 12.6.2014 at 13:00 EET 

The Stockmann Group's revenue was down 8.3 per cent on the previous year and
amounted to EUR 153.9 million in May 2014. 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 4.7 per
cent. 

The Department Store Division's revenue was down 9.5 per cent. Revenue
decreased by 8.7 per cent in Finland, where the retail market remained very
weak. Euro-denominated revenue was down 11.6 per cent in international
operations. Revenue was up in the Baltic countries but down in Russia. 

The Fashion Chain Division's revenue decreased by 6.9 per cent; down 11.5 per
cent in Finland and 5.8 per cent in international operations. At comparable
exchange rates Lindex's revenue was up by 1.6 per cent. Due to currency effect,
however, euro-denominated revenue was down 3.8 per cent. Seppälä's revenue was
down 24.1 per cent. Store closings continued in Russia during April and May. 

Revised outlook for 2014

Demand of non-food products has continued to be weaker than expected in the
Finnish market during the second quarter of 2014. In addition, the weak Russian
rouble continues to have a significant impact on the financial result in the
Russian market. 

If a considerable change in the market environment will not take place during
the second half of the year, Stockmann estimates that the Group's operating
profit in 2014 will be significantly weaker than in 2013. 

As announced earlier, Stockmann has begun a process of reviewing and revising
the Group's existing strategy, in order to respond to the rapid changes in the
retail market. Stockmann will also continue its cost savings programme.
Structural changes are being planned and implemented across the organisation to
improve profitability. 

Previous profit guidance for 2014 (Interim Report published on 29 April 2014):
Due to the weak currency exchange rates and weaker than expected consumer
demand in Russia and Finland, Stockmann estimates that the Group's
euro-denominated revenue in 2014 will decline on 2013. Operating profit is not
expected to exceed the figure for 2013. 

Revenue (exclusive of VAT) in May

                                       5/2014  Change-%
                                    EUR mill.          
Department Store Division, Finland       58.2      -8.7
Department Store Division,               23.2     -11.6
international operations                               
Department Store Division, total         81.4      -9.5
Fashion Chain Division, Finland          13.8     -11.5
Fashion Chain Division,                  58.7      -5.8
international operations                               
Fashion Chain Division, total            72.5      -6.9
Unallocated                               0.0          
Operations in Finland, total             72.0      -9.1
International operations, total          81.9      -7.5
Stockmann total                         153.9      -8.3



Revenue (exclusive of VAT) in January-May

                                  1-5/2014                    Change-%  Change-%
                                 EUR mill.            excl. terminated          
                                                          franchising*          
Department Store Division,           304.7                        -9.6     -10.4
 Finland                                                                        
Department Store Division,           149.5                       -11.0     -11.0
international operations                                                        
Department Store Division,           454.1                       -10.1     -10.6
 total                                                                          
Fashion Chain Division, Finland       51.5                        -8.9      -8.9
Fashion Chain Division,              233.8                        -5.3      -5.3
international operations                                                        
Fashion Chain Division, total        285.3                        -5.9      -5.9
Unallocated                            0.1                                      
Operations in Finland, total         356.3                        -9.4     -10.1
International operations, total      383.2                        -7.6      -7.6
Stockmann total                      739.5                        -8.5      -8.8


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:
Hannu Penttilä, CEO, tel. +358 9 121 5801
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351

www.stockmanngroup.com


STOCKMANN plc

Hannu Penttilä
CEO


Distribution:
NASDAQ OMX
Principal media