Finnish retailer Stockmann's Q2 FY21 revenue grows 21% to €228 mn

27 Jul '21

2 min read

Pic: Flickr/ Stockmann

Stockmann plc, a Finnish company engaged in retail trade, has posted 21.4 per cent revenue growth to €228.0 million in its second quarter (Q2) of FY21 ended on June 30, 2021, against €182.7 million in the corresponding period of previous fiscal. Operating result (EBIT) for the quarter improved to €26.3 million (Q1 FY20: loss €0.4 million).

Gross margin during Q2 FY21 rose to €60.5 million (€54.1 million), whereas net income increased to €19.1 million (€12.9 million). The company’s online revenue escalated 82 per cent compared to same period of 2019, and on the contrary, it slipped 22 per cent against first half of 2020.

Revenue from Lindex division were up 32.7 per cent to €162.0 million, with online sales growing 51.4 per cent during Q2 FY21. Initially Lindex stores were closed in most of the company’s sales markets but a more positive situation in May and June was experienced due to re-opening, the company stated in a press release.

While Stockmann divison's revenue surged 9.0 per cent to €66.0 million, with merchandise sales in the brick-and-mortar store increased 25 per cent compared to Q2 FY20. However, the division’s online growth dipped 22.3 per cent.

“The market started to recover and it is very positive that Lindex is even above and Stockmann is in line with market growth. Visitor flows in brick-and-mortar stores intensified during the second quarter. Especially the fashion categories improved clearly during Q2,” Jari Latvanen, CEO at Stockmann, said.

“Lindex had very strong performance with improved sales and result in all markets and business areas. The sales in both physical stores and online have increased. Together with better gross margin and continued cost savings, these made a good contribution to the positive result,” Latvanen added.

In its outlook, the Finnish firm mentioned that the retail market is expected to remain challenging due to changes in consumer behaviour and confidence, which is also affected by the coronavirus situation. The Stockmann division will continue to execute the restructuring programme and Lindex to drive efficiencies and explore new growth opportunities.

Fibre2Fashion News Desk (JL)

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