Home / Knowledge / News / Apparel/Garments / Stockmann revenue slips 8.3% to €153.9mn in May
Stockmann revenue slips 8.3% to €153.9mn in May
12
Jun '14
The Stockmann Group’s revenue was down 8.3 per cent on the previous year and amounted to EUR 153.9 million in May 2014. Weak exchange rates of the Russian rouble, Swedish krona and Norwegian krone continued to negatively affect euro-denominated revenue. Revenue at comparable exchange rates was down 4.7 per cent.
 
The Department Store Division’s revenue was down 9.5 per cent. Revenue decreased by 8.7 per cent in Finland, where the retail market remained very weak. Euro-denominated revenue was down 11.6 per cent in international operations. Revenue was up in the Baltic countries but down in Russia. 
 
The Fashion Chain Division’s revenue decreased by 6.9 per cent; down 11.5 per cent in Finland and 5.8 per cent in international operations. At comparable exchange rates Lindex’s revenue was up by 1.6 per cent. Due to currency effect, however, euro-denominated revenue was down 3.8 per cent. Seppälä’s revenue was down 24.1 per cent. Store closings continued in Russia during April and May.
 
Revised outlook for 2014
Demand of non-food products has continued to be weaker than expected in the Finnish market during the second quarter of 2014. In addition, the weak Russian rouble continues to have a significant impact on the financial result in the Russian market.
 
If a considerable change in the market environment will not take place during the second half of the year, Stockmann estimates that the Group’s operating profit in 2014 will be significantly weaker than in 2013.
 
As announced earlier, Stockmann has begun a process of reviewing and revising the Group’s existing strategy, in order to respond to the rapid changes in the retail market. Stockmann will also continue its cost savings programme. Structural changes are being planned and implemented across the organisation to improve profitability.
 
Previous profit guidance for 2014 (Interim Report published on 29 April 2014):
Due to the weak currency exchange rates and weaker than expected consumer demand in Russia and Finland, Stockmann estimates that the Group’s euro-denominated revenue in 2014 will decline on 2013. Operating profit is not expected to exceed the figure for 2013.
 

Stockmann Group

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search