Stockmann Q3 earnings up yr-on-yr; FY sales seen just over 1.6 bln eur UPDATE

Stockmann Q3 earnings up yr-on-yr; FY sales seen just over 1.6 bln eur UPDATE

	Published : Wed, 24 Oct 2007 11:22 By : Agencies Print this Story

(Updates with further details, background)

HELSINKI (Thomson Financial) - Department store and fashion retailer Stockmann reported an increase in third-quarter pretax profit that came in at 31.5 mln eur, up from 20.4 mln eur a year earlier on a better performance in all it units.

Diluted earnings per share recorded 0.42 eur against 0.28 eur a year ago.

July-September sales reached 308.6 mln eur, up from 281.1 mln eur in the same period of last year.

Sales at the Department Store, the group's biggest unit, came in at 275.5 mln eur against 249 mln eur a year ago.

The division's operating profit for the quarter recorded 25.7 mln eur, up from last year's figure of 13.1 mln eur.

In Hobby Hall, the group's mail order unit, sales were 45.9 mln eur, slightly up from 45.5 mln eur a year ago, with the unit's operating profit recording 2.5 mln eur, compared with the 2.1 mln eur figure of last year.

In Seppala, the group's clothing chain, third-quarter sales came in at 40.2 mln eur, up from 33.2 mln eur in the previous year.

Seppala's operating profit was little changed as it was 5.5 mln eur versus 5.4 mln eur a year earlier.

Looking ahead, the group said it sees no major changes or operational risks, reiterating that sales are expected to grow by 3-4 pct in Finland in 2007.

It also said that Russian and Baltic markets are set to continue growing at a faster pace than the Finnish market, stating that full-year sales are projected to be just over 1.6 bln eur.

Stockmann also noted that the tender offer for Lindex will result in weakening the group's equity ration at the balance sheet date as this will take place before the end of the financial year.

Stockmann bid 116 skr per share for Lindex at the beginning of this month, an offer that was supported by the latter's shareholders.

The value of the tender offer is about 866 mln eur in total.

azer.sawiris@thomson.com

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