Home / Knowledge / News / Apparel/Garments / Q2 sales dip 8.9% at Finnish retail chain Stockmann
Q2 sales dip 8.9% at Finnish retail chain Stockmann
14
Aug '14
Finland based retail chain Stockmann plc which operates fashion brand Lindex, posted consolidated revenue of EUR 495.3 million, down 8.9 percent and also down 5.1 percent at comparable exchange rates in the second quarter of 2014 from EUR 543.6 million in the second quarter of 2014.

Operating profit for the April-June 2014 quarter stood at EUR 3.5 million also down from EUR 30.1 million from the comparable quarter of 2013.

Relative gross margin fell to 48.1 percent in the quarter under review to 49.1 percent from April to June quarter of 2013.

Stockmann posted a loss before tax of EUR 3.8 million from a profit before tax of EUR 21.6 million it reported in the second quarter of 2013.

Net loss stood at EUR 8.1 in the second quarter of 2014 against net income of EUR 19.5 in the same period of 2013.

Undiluted earnings per share turned negative at EUR 0.11 compared to EUR 0.27 earnings per share.

Stockmann estimates that the Group’s euro-denominated revenue in 2014 will decline from 2013. It also expects operating profit in 2014 to be significantly weaker than in 2013.

CEO of Stockmann Hannu Penttilä said, “The retail market is undergoing significant changes in Finland. Consumer confidence remains low and demand for non-food products has clearly declined. We at Stockmann have not succeeded in beating this negative market development.

“Online business is changing consumer behaviour, but online stores are not yet compensating for the dramatic decline in traditional retail. At the same time, the market environment in Russia continues to be challenging, as the Russian rouble remains weak and the country’s future economic direction is unclear. The market environment in the Baltic countries, Sweden and Norway has been stable.”

To arrest the downtrend, Stockmann said it will introduce a new reporting structure in order to better reflect the different business logics in retail and real estate. This will be done to increase focus and transparency and to optimise the use of floor space in order to improve the customer experience.

From 1 January 2015 the new reporting segments will be, Stockmann Retail, Real Estate and Fashion Chains.

Stockmann Retail will consist of the Stockmann department stores, the Academic Bookstore, Hobby Hall and the Stockmann Beauty cosmetic stores. Real Estate will consist of the Group’s real estate holdings in Helsinki, St Petersburg, Tallinn and Riga which are used by the Stockmann department stores and external tenants. Fashion Chains will consist of Lindex and Seppälä.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Aug 2016

French textile machinery makers to show at ITMA CITME

Seven French textile machinery manufacturers will showcase their...

courtesy: JLL

Apparel/Garments | On 27th Aug 2016

Indian cities clocking fastest retail growth: Report

Indian cities such as Bangalore, Hyderabad, Delhi and Pune are...

courtesy: Delta Galil

Fashion | On 27th Aug 2016

VF Corp completes sale of 3 brands to Delta Galil

VF Corporation, a global leader in the design, manufacture, marketing ...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

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

Jay Ramrakhiani
Occasions Elegance Wear

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

Prathyusha Garimella
Prathyusha Garimella

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
August 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search