Stockmann sees steady growth in operating profit

01 Nov '12

5 min read

Stockmann Group release Interim Report from January 1 to September 30.

Highlights:

July - September 2012:

• Consolidated revenue was up 5.2 per cent to EUR 485.1 million (EUR 461.3 million).

• Operating profit was up 12.5 per cent to EUR 17.1 million (EUR 15.2 million).

January - September 2012:

• Consolidated revenue was up 6.8 per cent to EUR 1 472.6 million (EUR 1 379.2 million).

• Operating profit increased by EUR 19.7 million to EUR 30.5 million (EUR 10.8 million).

• Profit for the period was 5.8 EUR million (EUR -14.4 million).

• Earnings per share came to EUR 0.08 (EUR -0.20).

• Full-year outlook unchanged: Revenue and operating profit expected to be above the figures for 2011, provided that the market sentiment does not significantly worsen.

CEO Hannu Penttilä:

The Stockmann Group’s revenue and operating profit continued to grow steadily in the third quarter of 2012. The strongest sales growth was achieved by Lindex, which gained market share in all markets except Norway. The growth was mainly due to the successful campaign against breast cancer that was carried out in September together with Missoni. As a result, Lindex posted a clear improvement in its earnings.

Seppälä was not as successful as it was in the third quarter of 2011. We are confident that the new organisational structure and the Fashion Chain Division that was established in June will help Seppälä’s operations become more profitable again. The brand renewal project which was started during the quarter is expected to have a positive impact on Seppälä’s operations in the coming years.

Stockmann’s department stores in Russia continued to perform well, with the St Petersburg flagship store leading the way. Operating profit improved again in Russia, despite the loss-making Bestseller operations which will be closed by the end of the year. The Baltic department stores also continued their good performance. Operating profit was lower than the previous year in Finland where there are signs of weakening consumer purchasing behaviour.

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