The Stockmann Group, a Finnish retail company, has reported a revenue of €226.9 million for the third quarter of fiscal 2023 (Q3 FY23), which spans from July to September 2023, showing a decline of 7 per cent compared to the €244 million recorded for the same period last year. However, when calculated in local currencies, the revenue decrease was a much milder 1.7 per cent.

For the first nine months of the fiscal year, revenue was €677.4 million, down by 4.5 per cent from €709.1 million in the previous year. Again, the picture was brighter in local currencies, with a 0.7 per cent increase.

The Lindex division's revenue for Q3 FY23 was €162.3 million, down from €166.9 million, a decrease of 2.8 per cent. However, Lindex saw growth of 4.9 per cent in local currencies. For the first nine months, Lindex's revenue was €464.9 million, down from €488.9 million, but with a local currencies increase of 2.6 per cent, the company said in a media release.

On the other hand, the Stockmann division witnessed a more substantial decline, with revenue for Q3 falling to €64.7 million from €77.1 million last year. For the first nine months, the division’s revenue dropped by 3.5 per cent to €212.4 million from €220.2 million.

The group’s gross margin improved to 58.5 per cent from 56.8 per cent in Q3. The adjusted operating result decreased to €20.6 million from €22 million, although it improved in local currencies.

For the first nine months, the gross margin remained stable at 58.5 per cent, close to last year's 58.1 per cent. The adjusted operating result was €49.8 million, down from €53.7 million, but showing improvements in local currencies.

Lindex’s adjusted operating result for Q3 strengthened to €26.2 million from €22.5 million and improved significantly in local currencies. For the first nine months, the adjusted operating result was €68 million, up from €67 million.

The Stockmann division, however, saw its adjusted operating result decline to minus €4.8 million for Q3, compared to €0.2 million last year. For the first nine months, the adjusted operating result was minus €15.3 million, down from minus €8.7 million.

The group's operating result was €20.3 million for Q3, significantly higher than last year’s €6 million. The net result amounted to €8.7 million, up from €0.6 million. Earnings per share for Q3 were €0.05, compared to €0.00 in the previous year.

For the first nine months, the operating result was €47.6 million, a substantial decrease from the €130.3 million recorded last year. The net result for the period was €42 million, down from €84.1 million, with earnings per share at €0.27 compared to €0.54 last year.

“The Stockmann Group’s priorities are to improve profitability to create a solid and sustainable foundation for the future as well as to accelerate the growth of Lindex. In the third quarter, the group’s adjusted operating result improved slightly in local currencies, but in euros, it was below the comparison period,” said Susanne Ehnbage, CEO.

Fibre2Fashion News Desk (DP)

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