Stockmann - Company Announcement

STOCKMANN GROUP'S OPERATING RESULT FOR Q1 2011 CLEARLY LOWER THAN IN 2010 - FULL-YEAR OUTLOOK UNCHANGED

Crazy Days campaign in April reached a new sales record

Helsinki, Finland, 2011-04-20 07:30 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 20.4.2011 at 8:30 EET 

STOCKMANN GROUP'S OPERATING RESULT FOR Q1 2011 CLEARLY LOWER THAN IN 2010 -
FULL-YEAR OUTLOOK UNCHANGED 

Crazy Days campaign in April reached a new sales record

Stockmann's first-quarter operating profit is typically negative due to
seasonal variation. In 2011, the slow market development, particularly in the
affordable fashion segment in which Stockmann Group's fashion chains Lindex and
Seppälä operate, has resulted in lower sales volumes than expected in the first
quarter. 

The lower than expected revenue did not cover the increased costs and
depreciation due to the expansion. Increased sourcing prices and actions to
boost sales also negatively affected the fashion chains' relative gross margin.
As a result, Stockmann's operating profit for Q1 will fall short of the level
in the first quarter of 2010. The operating result for the quarter will be
approximately EUR -30 million, and will be down in all business divisions. 

Earlier, in its Financial Statements bulletin on 10 February 2011, Stockmann
estimated that the first-quarter operating result would be negative due to
normal seasonal variation in the market. 

The outlook for the full year remains unchanged. Stockmann expects to achieve
continued revenue growth in 2011. The operating profit for the financial year
is expected to be above the previous year's figure. 

Stockmann Department Store Division's Crazy Days campaign, which has a
significant impact on the second quarter results, succeeded very well in all
countries. The campaign again reached record-high sales with a total revenue
growth of 18 per cent; up 5 per cent in Finland, 18 per cent in the Baltic
countries and 70 per cent in Russia. 

Stockmann sees opportunities for profit growth, especially in the last two
quarters of the year. In 2010, the Group reached a significant profit increase
during the first quarter. 

Stockmann will publish its interim report for the first quarter of 2011 on 28
April 2011. 


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

www.stockmanngroup.fi


STOCKMANN plc

Hannu Penttilä
CEO


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