The Finnish retail giant, Stockmann Group, has released its Q2 and half-year performance report, showcasing significant improvements in both sales and profits. Over the past three months, the company experienced a consolidated revenue increase of over 20%, along with a rise in gross margin and adjusted operating profits. In Q2 alone, consolidated revenue rose by 21.4% to €228 million at comparable currency rates, with a gross margin of 60.5%. The quarter’s operating profit reached €26.3 million, a stark contrast to the €0.4 million loss from the same period last year. The adjusted operating result also saw a significant improvement, reaching €26.7 million compared to €0.8 million in the previous year.

These Q2 results reflect a noticeable acceleration and enhancement in both sales and profits for Stockmann. However, when examining the first half of the year as a whole, the consolidated revenue only increased by 6.5% to €383.7 million at comparable currency rates, with a gross margin of 58.8%. The operating result for this period showed a loss of €1.4 million, which is still a substantial improvement compared to the €28.3 million loss in the previous year. On the other hand, the adjusted operating result demonstrated a profit of €5.6 million, a vast improvement compared to the €25.9 million loss from the prior year.

Looking ahead, Stockmann is anticipating a clear increase in group revenue for the full year, assuming there are no major Covid-19 restrictions imposed. The company, which owns the Stockmann department store and Lindex retail chain, expects a positive adjusted operating result. CEO Jari Latvanen emphasized the improved performance of both divisions and revealed that the group’s cash has risen to €155 million as of the end of June. However, despite the positive outlook, Latvanen acknowledged the prevailing uncertainty in the global economy caused by the pandemic. He pointed out that the retail market is expected to remain challenging due to changes in consumer behavior and confidence, heavily influenced by the coronavirus situation.

Considering these circumstances, Stockmann intends to continue implementing its restructuring program, while Lindex will focus on driving efficiencies and exploring new growth opportunities. The company remains cautiously optimistic but recognizes that the global economy will likely continue to be affected by the pandemic until the situation is brought under better control.

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