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

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silvia Venturini Fendi
Fendi s.r.l

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search