Stockmann Group's sales in December and for full year 2016

STOCKMANN plc, Company Announcement 13.1.2017 at 13:30 EET

The Stockmann Group’s sales in December amounted to EUR 133.1 million in continuing product areas and businesses, which is 8.8 per cent lower than a year ago.

The Group’s sales in continuing product areas and businesses for the full year 2016 amounted to EUR 1 165.0 million, and the total sales including Hobby Hall were EUR 1 239.5 million. Sales in continuing product areas and businesses were down by 5.3 per cent.

“In 2016, we focused on improving Stockmann’s profitability. We renewed the product and brand selections in our department stores, made refurbishments in the premises, particularly in the Helsinki city centre flagship store, and reduced the number of price-driven campaigns. Although the changes are reflected in the decline in product sales, the gross margin has improved at the same time, and service and rental income from our partners has grown. Sales developed well in the Lindex fashion chain, particularly during the spring,” says CEO Lauri Veijalainen.

“The Christmas trade was most successful in our Baltic department stores, where the fashion sales generated very good growth. As a whole, the Christmas trade was down compared with the previous year, but this sales development, together with the significant cost savings made, are sufficient to reach our profit guidance. The Stockmann Group will achieve a slightly positive operating result in 2016 after two loss-making years.”

Sales in December 2016

The Stockmann Group's sales in December were down by 8.8 per cent and amounted to EUR 133.1 million in continuing product areas and businesses.

Stockmann Retail's sales in continuing product areas and businesses were down by 9.3 per cent. Sales were up 4.0 per cent in the Baltic countries. Sales grew in the department stores in Tallinn and Riga. Sales were down by 11.2 per cent in Finland. Sales declined most in the Oulu department store, which will be closed in January 2017.

Lindex's sales were down by 6.7 per cent at comparable exchange rates. The Christmas trade did not reach its target particularly in Finland and in Sweden. Due to the weak Swedish krona, euro-denominated sales were down by 8.5 per cent.

Sales in 2016

The Stockmann Group's sales for the full year 2016 were down by 5.3 per cent and amounted to EUR 1 165.5 million in continuing product areas and businesses.

Stockmann Retail's sales in continuing product areas and businesses were down by 9.5 per cent. Sales were down by 10.9 per cent in Finland and by 1.9 per cent in the Baltic countries. Excluding the Oulu department store, the sales decline slowed down slightly after the summer.

Lindex's sales were down by 1.4 per cent at comparable exchange rates. Sales grew during the first and second quarter of the year, but were down during the second half of the year. Euro-denominated sales were down by 3.0 per cent or 1.4 per cent without the stores in Russia.

Sales (exclusive of VAT) in December

12/2016
EUR mill.
Change-%* 1-12/2016
EUR mill.
Change-%*
Stockmann Retail, Finland 54.4 -11.2 449.6 -10.9
Stockmann Retail, international operations 9.6 4.0 86.5 -1.9
Stockmann Retail, total 64.0 -9.3 536.1 -9.5
Lindex, total 69.1 -8.5 628.8 -1.4
Group, Finland, total 62.3 -11.6 520.0 -9.9
Group, international operations, total 70.8 -6.3 645.0 -1.2
Stockmann Group, total* 133.1 -8.8 1 165.0 -5.3

*Continuing product areas and businesses i.e. excluding Russian retail operations, Seppälä, Hobby Hall, Stockmann Beauty, the airport store and the product areas the company has withdrawn from in department stores (electronics, books, sports equipment, toys and pet supplies).

Stockmann’s total sales in December 2016 were EUR 140.9 million, including Hobby Hall. In December 2015, sales were EUR 173.7 million, also including Russian retail operations and discontinued product areas in department stores.

Change-%: change compared with the corresponding period of the previous year. The Group's sales figures include merchandise sales exclusive of VAT in stores and department stores. The figures do not include other operating income such as rental income or service fees.

Further information:
Lauri Veijalainen, CEO, tel. +358 9 121 5062
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com

STOCKMANN plc

Lauri Veijalainen
CEO

Distribution:
Nasdaq Helsinki
Principal media

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