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

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

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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