Stockmann revenue down 4.5% in FY19

19 Feb '20

2 min read

Pic: Stockmann

Stockmann plc, a company engaged in retail trade, posted 5.5 per cent decrease in consolidated revenue to €285.7 million in the fourth quarter (Q4) FY19. Consolidated revenue for complete FY19 fell 4.5 per cent to €960.4 million compared to €1018.8 million in FY18. Gross margin in Q4 was 56.6 per cent. Operating results in the quarter was €22.4 million.

Gross margin for complete FY19 that ended on December 31, 2019, was 56.3 per cent. Operating result was €13.3 million.

The company reported that the positive operating result in the year was achieved through the rejuvenation programme and ongoing savings and the improved performance of both Lindex and Stockmann.

Stockmann division revenue in FY19 was €386.8 million. Online sales increased in FY19 by 10.8 per cent. The divestment of Nevsky Centre reportedly had a negative impact on revenue.

For the quarter, Stockmann division's revenue declined to €126.5 million due to the divestment of properties. Gross margin improved to 46.8 per cent compared with same quarter prior year. Operating costs in Q4 were down by €9 million. Operating result increased in Q4 to €8.2 million

Lindex reportedly had a strong full-year result with increased profitability in all markets, sales channels and business areas. Operating result of Lindex in FY19 amounted to €32.1 million and increased by €3.2 million. Comparable sales increased by 1.2 per cent. Revenue was down by 2.4 per cent to €575.8 million. Online sales increased by 24.3 per cent. Digital growth was reported both through the own channels and in collaboration with partners.

Lindex's operating result in fourth quarter was €14.4 million. comparable sales in local currencies increased by 0.9 per cent. Revenues for Lindex in Q4 decreased 2.8 per cent to €159.7 million. Online sales increased by 16 per cent.

Stockmann plc reported that both Stockmann and Lindex have continued to systematically develop digital services and technology solutions to strengthen their multichannel approach. Stockmann is renewing its department stores in Helsinki and Jumbo and launching a new online store during the summer 2020.

In the future outlook group stated that it expects the uncertainties in the global economy will remain during 2020. Group further expects the retail market to remain challenging due changes in consumer behavior and increasing competition, and moderate consumer confidence indicator. The rejuvenation programme in Stockmann will continue throughout 2020. Lindex will continue to drive efficiencies and explore new growth opportunities, as the company said

Fibre2Fashion News Desk (JL)

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