Stockmann - Company Announcement

Lindex’s franchising agreement in China is cancelled

Helsinki, Finland, 2014-03-20 14:30 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 20.3.2014 at 15:30 EET 

Stockmann's subsidiary AB Lindex entered into a franchising partnership with
the Chinese company Suning in September 2013. Suning has now unilaterally
withdrawn from the franchising agreement. Stockmann and Lindex will evaluate
the legal consequences of Suning's announcement. The withdrawal is not
estimated to have a significant effect on Stockmann's earnings for 2014, since
the store openings were planned to take place mainly from 2015 onwards. 

International expansion and franchising operations hold a key position in
Lindex's strategy to become a global fashion brand. Lindex will investigate
other opportunities to expand into the Chinese market, which continues to offer
promising prospects for the fashion business. Suning's withdrawal will,
however, delay Lindex's entry to the market. 

“We are convinced that Lindex's successful fashion concept will attract Chinese
customers. Our concept has proven to be a success in all the markets in which
we currently operate. We will now look into new ways to enter the market,” says
Göran Bille, CEO of Lindex. 

Lindex currently has 443 own stores in 10 countries and 33 franchising stores
through four franchising partners in six countries: Saudi Arabia, the United
Arab Emirates, Bosnia and Herzegovina, Serbia, Croatia, and Iceland. 

Further information:
Hannu Penttilä, CEO, tel. +358 9 121 5801
Göran Bille, Director for the Fashion Chain Division, CEO, Lindex, tel. +46 703
444 304 
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com


STOCKMANN plc

Hannu Penttilä
CEO


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