Stockmann - Financial Statement Release

Stockmann Group’s Financial Statement Bulletin 2013

Operating profit affected by a weak retail market

Helsinki, Finland, 2014-02-13 07:00 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Financial Statement Release 13.2.2014 at 8.00 EET 

October - December 2013:
Consolidated revenue was EUR 607.8 million (EUR 643.8 million), down by 4.5 per
cent excluding terminated franchising operations. 
Operating profit was EUR 48.3 million (EUR 56.8 million).

January - December 2013:
Consolidated revenue was EUR 2 037.1 million (EUR 2 116.4 million), down by 2.3
per cent excluding terminated franchising operations. 
Operating profit was EUR 54.4 million (EUR 87.3 million).
Profit for the period was EUR 48.4 million (EUR 53.6 million).
Earnings per share were EUR 0.67 (EUR 0.74), which includes a tax refund of EUR
0.37. 
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.40 per share be paid. 

CEO Hannu Penttilä:
The retail sector is undergoing a challenging time in Finland, as economic
growth stagnated in 2013 and consumers had less purchasing power. The Stockmann
Group's full-year revenue was slightly down in a weak market. The considerable
weakening of the Russian rouble created further challenges for both revenue and
profitability. Stockmann's operating profit declined, despite the extensive
cost savings programme that was initiated in the spring. 

After the successful Crazy Days campaign in October, Christmas sales were
disappointing for our department stores in Finland and in Russia. The Stockmann
online store in Finland almost doubled its revenue in 2013. This represented 5
per cent of the Finnish department stores' revenue in the product categories
sold online. 

Lindex continued to perform very well in the fourth quarter. It increased its
sales in all of its markets and improved its operating profit by 27 per cent.
Lindex has worked hard to create a respected brand and an attractive store
concept. The efforts are paying off. An interesting new market will open in
China next autumn, which will also mark Lindex's 60th anniversary. 

2013 was a year of major changes for Seppälä. These included a brand renewal, a
reduction in the number of stores, and the updating of key IT systems following
Lindex's example. However, the changes have not yet had an impact on the
financial result, which weakened significantly. We target to close over 20
additional Seppälä stores in Russia in 2014. 

Stockmann's profit for the year decreased less than the operating profit, due
to a tax refund to Lindex. As a result, earnings per share were EUR 0.67. 

A weak market environment will continue in 2014 and low purchasing power must
be taken into account, particularly in Finland. The outlook for Russia is very
uncertain. The market environment in Sweden, Norway and the Baltic countries is
expected to be stable. We are carrying out structural changes in order to adapt
the cost structure to slow growth and to improve our performance. At comparable
exchange rates, Stockmann expects the Group's revenue to increase slightly in
2014. Revenue growth is expected to take place in the second half of the year.
Operating profit is expected to be somewhat higher than in 2013. 

Outlook for 2014

The European economy is expected to improve slightly in 2014, but uncertainty
will continue in the retail market, particularly in Finland. Purchasing power
is expected to remain low, which will have a negative effect on consumer
purchasing behaviour. 

The Russian rouble has weakened considerably and economic growth in Russia is
estimated to stay on a low level. As a consequence, the retail market outlook
is expected to weaken. 

The outlook for the affordable fashion market in Sweden is expected to improve
slightly in 2014. The retail market in the Baltic countries is expected to
remain relatively stable. Low consumer confidence may, however, affect
consumers' willingness to make purchases in all market areas. 

As a consequence of the uncertain outlook, Stockmann launched a cost savings
programme in spring 2013. The programme will continue in 2014, focusing on
long-term structural changes in order to adapt the cost structure to the slow
growth and to improve performance. 

The Group's capital expenditure is estimated to be lower than depreciation, and
to amount to approximately EUR 60 million in 2014. 

At comparable exchange rates, Stockmann expects the Group's revenue to increase
slightly in 2014. Revenue growth is expected to take place in the second half
of the year. Operating profit is expected to be somewhat higher than in 2013.
The first-quarter operating result will be negative due to normal seasonal
variation. 

Key figures

                                                10-12/  10-12/    1-12/    1-12/
                                                  2013    2012     2013     2012
Revenue, EUR mill.                               607.8   643.8  2 037.1  2 116.4
Revenue growth, %                                 -5.6     2.8     -3.7      5.5
Gross margin, %                                   49.5    49.5     48.6     49.5
Operating profit, EUR mill.                       48.3    56.8     54.4     87.3
Net financial costs, EUR mill.                     9.0     8.7     27.6     32.4
Profit before tax, EUR mill.                      39.3    48.2     26.8     54.9
Profit for the period, EUR mill.                  36.5    47.7     48.4     53.6
Earnings per share, undiluted, EUR                0.51    0.66     0.67     0.74
Equity per share, EUR                                             12.42    12.40
Cash flow from operating activities, EUR mill.   183.2   141.1    125.4    123.7
Capital expenditure, EUR mill.                    13.1    19.4     56.8     60.3
Net gearing, %                                                     87.3     90.9
Equity ratio, %                                                    43.8     42.8
Number of shares, undiluted, weighted average,                   72 049   71 945
 1 000 pc                                                                       
Return on capital employed,                                         3.4      5.1
rolling 12 months                                                               
Personnel, average                              15 362  16 101   14 963   15 603



This company announcement is a summary of the Stockmann Financial Statements
Bulletin 2013 and includes the most relevant information of the bulletin. The
complete bulletin is attached to this release as a pdf file and is also
available on the company's website at stockmanngroup.com. 

Annual General Meeting 2014
The Annual General Meeting of Stockmann plc will be held on Tuesday 18 March
2014 at 2 p. m. at Finlandia Hall in Helsinki, Finland (address:
Mannerheimintie 13). Notice of the Annual General Meeting which includes
proposals to the meeting is published as a separate stock exchange release on
13 February 2014. 

Financial releases in 2014
Stockmann will publish its financial statements, the report by the Board of
Directors and an electronic version of the Annual Report 2013 on the company's
website at stockmanngroup.com in the week starting on 24 February 2014. The
printed Annual Report will be available in the week starting on 10 March 2014. 

The 2014 interim reports will be released on 29 April 2014, 13 August 2014, and
29 October 2014. 

Press and analyst briefing and conference call
A press and analyst briefing in Finnish will be held today, on 13 February 2014
at 9.15 a.m. at the Fazer À la Carte restaurant on the 8th floor of Stockmann's
Helsinki city centre department store, Aleksanterinkatu 52. 

A conference call in English will be held today, on 13 February 2014 at 11.15
a.m. EET. To participate the conference call, please dial +358 9 8864 8511 and,
when requested, key in the meeting room number *657899* including the
asterisks. The presentation material will be available for downloading on the
company's website from 9.15 a.m. EET onwards. 

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

Priedai:

Financial Statements 2013 ENG.pdf