Stockmann Aug sales down 9.1% from exchange woes

13 Sep '14

2 min read

Weak exchange rates continued to trouble Finnish Group Stockmann August sales, which also counts fashion retailer Lindex among its fold.

Stockmann Group’s August revenue was down 9.1 percent from a year ago period and reached EUR 138.5 million in August 2014. Revenue at comparable exchange rates was also down 6.3 per cent.

Weak exchange rates of Russian Rouble, Swedish Krona and Norwegian Krone continued to negatively affect euro-denominated revenue, Stockmann said.

Within divisions, revenue at the Department Store division was up in Baltic countries and Russia, but weak performance continued in Finland.

In August, the division’s euro-denominated revenue in total decreased by 10.7 percent from last August, due to a decline of 13.8 percent in Finland and 3.0 percent in global operations.

Sales at the Fashion Chain division fell 7.4 percent year-on-year in August, due to a 9.8 percent and 6.9 percent decline in Finland and international operations, respectively.

At comparable exchange rates, fashion retailer Lindex posted flat revenues against those reported in the previous August.

However, currency effects led to August euro-denominated revenue decrease 5.2 percent from same month of 2013 at Lindex.

Partly due to closures of several unprofitable stores in Russia during the past 12 months, Seppälä’s sales too were down 20.7 percent year-on-year in August. (AR)

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