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Finnish retailer Stockmann achieves positive earnings in third quarter
06 Nov 21 2 min read
Stockmann plc, a Finnish company engaged in retail trade, has reported revenue of €237.8 million, up by 12.0 per cent, in the third quarter (Q3) of FY21 compared to the revenue of €207.6 million in the corresponding period of previous fiscal. The company’s operating result (EBIT) for the quarter more than doubled to €33.2 million (Q3 FY20: €14.3 million).
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“Lindex generated an outstanding result due to increased sales in all markets and business areas, and a very high gross margin. Sales in the brick-and-mortar stores were boosted due to higher visitor levels, and the strong development in the online store continued,” Jari Latvanen, CEO at Stockmann, said in a press release.
Performance of Lindex division remained strong in all markets and business areas, with sales growing by 15.7 per cent to €168.9 million (€146.0 million). The company is focussed on multichannel development of Lindex for global growth in future.
On the other hand, Stockmann division recorded a 11.7 per cent sales jump to €68.9 million (€61.6 million), attributed to significant growth in brick-and-mortar sales which grew by 13.6 per cent during the third quarter ended on September 30, 2021.
“For the first time since the fourth quarter in 2019, the Stockmann division delivered a positive result, slightly above zero. Sales in the brick-and-mortar stores increased clearly during the third quarter and changed the balance between the sales channels. Both channels showed healthy growth during the quarter. The Riga Delicatessen was re-opened in September after being closed and renovated for two months,” Latvanen added.
The fashion retailer's gross margin during Q3 FY21 rose to €59.5 million (€57.4 million), while net profit shot up to €23.3 million (€3.3 million).
“The uncertainty in the global economy is expected to persist throughout 2021, and the COVID-19 pandemic will continue to have a significant impact on the economy across the world, until the coronavirus situation is under better control. The retail market is expected to remain challenging due to changes in consumer behaviour and confidence, which are also affected by the coronavirus situation,” the company stated in its outlook for FY21.
Fibre2Fashion News Desk (JL)
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