THE STOCKMANN GROUP’S PRELIMINARY SALES IN DECEMBER AND IN 2006

STOCKMANN plc STOCK EXCHANGE RELEASE January 9, 2007, at 10.45

THE STOCKMANN GROUP’S PRELIMINARY SALES IN DECEMBER AND IN 2006

The Stockmann Group’s sales in December were EUR 173.1 million.
Consolidated sales, eliminating the Zara business in Russia that was
divested as from January 1, 2006, and the Stockmann Auto business that was
transferred to new owners on March 1, 2006, were up one per cent.

In Finland, the December sales proved to be a disappointment at all the
Group’s divisions. Sales got off to a slow start in early December and
picked up during the Christmas week, but particularly the sales on the day
before Christmas Eve remained clearly lower than those of the same day a
year ago. Owing to the few opening hours, sales on New Year’s Eve remained
below the year-ago figures. All the Group’s divisions improved, however,
their sales in international operations.

Sales by the Department Store Division grew by 3 per cent. In Finland,
sales were on a par with the previous year but grew by 15 per cent in
international operations. The growth in sales was especially vigorous in
the Baltic department stores and the department stores in the Mega
shopping centres in Moscow.

Seppälä’s sales were on a par with the previous year. Sales were down 8
per cent in Finland whereas sales abroad increased by a hefty 47 per cent.
The strong growth in sales in international operations was attributable to
both good same-store sales growth and the expansion of the store network
especially in Russia where there were already 16 Seppälä stores at the end
of the year.

Hobby Hall’s sales were down 15 per cent. Sales decreased by 19 per cent
in Finland but were up 17 per cent abroad.

The Stockmann Group’s preliminary full-year sales were EUR 1 553 million.
Sales from continuing operations were up 7 per cent.

The preliminary full-year sales by the Department Store Division rose by 9
per cent, up 4 per cent in Finland and up 26 per cent abroad.

Seppälä’s preliminary full-year sales grew by 2 per cent. Sales diminished
by 7 per cent in Finland but increased by 51 per cent abroad.

Hobby Hall’s preliminary full-year sales decreased by 5 per cent owing to
the operating policy aiming at improved profitability. Sales were down 5
per cent in Finland and down 4 per cent abroad.

In spite of the weaker December sales than expected, the Group’s earnings
estimate is unchanged. Although the sales were lower than expected, the
inventories at all the divisions are lower than in the previous year. The
Group’s profit before taxes is expected to be clearly better than in 2005.
The Department Store Division and Hobby Hall are expected to report a
higher operating profit than a year ago. Owing to the costs for the strong
expansion as well as the decrease in sales in Finland, Seppälä’s operating
profit, excluding non-recurring items, is going to diminish but will
remain good; Seppälä’s profitability is at the same level as that of the
best international fashion chains.

The Stockmann Group will release the final sales figures on February 8,
2007, when the financial statements are published.

Sales figures in December and in January-December

December January-December
change change
2006 2005 perc. 2006 2005 perc.
Me Me 06/05 Me Me 06/05

Department Store 105.2 105.5 -0.3 832.2 797.0 4.4
Division, Finland
Department Store 34.5 30.1 14.8 286.8 227.0 26.3
Division,
international
operations*
Department Store 139.7 135.6 3.1 1 119.0 1 024.1 9.3
Division, total*
Stockmann Auto* 74.8 64.3 16.3
Hobby Hall, Finland 11.5 14.2 -18.8 167.2 176.5 -5.3
Hobby Hall, 1.7 1.5 16.6 32.6 34.0 -4.0
international
operations
Hobby Hall, total 13.2 15.7 -15.5 199.8 210.5 -5.1
Seppälä, Finland 15.9 17.2 -7.6 123.5 132.4 -6.7
Seppälä, international 4.2 2.9 46.8 34.6 22.9 51.2
operations
Seppälä, total 20.1 20.1 0.2 158.1 155.2 1.8
Real estate + others 0.1 0.1 -21.2 0.9 0.9 -1.0
Operations in Finland, 132.7 136.9 -3.1 1 198.6 1 171.2 2.3
total*
International 40.5 34.4 17.6 354.0 283.9 24.7
operations, total*
Stockmann total* 173.1 171.4 1.0 1 552.6 1 455.0 6.7

* The figures for 2005 do not include the Zara business in Russia that was
sold at the turn of the year nor the March-December sales by the Stockmann
Auto division that was divested at the beginning of March 2006. If the
sales in 2005 by Zara Russia and Stockmann Auto are included in the
comparison figures, the change of sales in per cent was:

December January-December
2006 2006
change change
perc. perc.
Department Store Division, -1.6 4.9
international operations
Department Store Division, total -0.6 4.5
Operations in Finland, total -20.0 -21.2
International operations, total 2.7 7.2
Stockmann total -15.6 -16.1

STOCKMANN plc

Hannu Penttilä
CEO

DISTRIBUTION
Helsinki Stock Exchange
Principal media