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

Textiles | On 24th Sep 2016

GST Council sets exemption limit at Rs 20 lakh

The GST Council has decided to exempt businesses from the Goods and...

Apparel/Garments | On 24th Sep 2016

DGFT adds new service providers in EPCG scheme

Providing great relief to the job working units in garment clusters...

Apparel/Garments | On 24th Sep 2016

Niti Aayog kicks off Indian ecommerce policy review

A Niti Aayog committee set up for the purpose, held deliberations...

Interviews View All

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
September 2016

September 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search