Stockmann, the parent company of Lindex, recently reported its financial results for the third quarter and the nine months ending in September. Although there was positive news of revenue growth and the Stockmann division reaching break-even, the company faced challenges in the form of declining margins and profits.

In the latest quarter, Lindex saw a 4.2% increase in revenue, climbing from €237.8 million to €244 million. However, the gross margin experienced a decrease from 59.5% to 56.8%. Adjusted operating profits also dropped from €32.9 million to €22 million. Overall, the operating result for the quarter was €6 million, down from €32.7 million the previous year, and net profit fell from €22.9 million to €0.6 million.

For the nine months ending in September, revenue rose to €709.1 million, representing a 15.4% increase in local currencies. Although the gross margin declined slightly from 59.1% to 58.1%, adjusted operating profit rose from €38.6 million to €53.7 million. Reported operating profit also increased significantly from €31.5 million to €130.3 million. Net profit rose from €12.6 million to €84.1 million.

Despite the challenges faced, Stockmann has maintained its guidance, predicting further revenue growth and a better operating result compared to the previous year. However, the company acknowledges the potential impact of challenges such as higher inflation and supply chain difficulties on consumer spending in the future. Despite this, CEO Jari Latvanen remains optimistic about the company’s performance and growth potential.

While the Stockmann division experienced an improvement in the gross margin, Lindex saw a decrease due to unfavorable exchange rates. Latvanen believes that stabilizing inflation rates and ongoing investments will contribute to future growth and financial stability. It’s important to note that the weaker profitability in the third quarter was not due to any inherent weaknesses in the company’s brands.

Stockmann also highlighted that tough comparisons with the outstanding results of the previous year made this quarter’s figures appear worse than they might have otherwise. The company’s restructuring process is progressing as planned, with the sale of all department store properties and the payment of most interest-bearing debts. Currently, Stockmann only has a remaining bond of €67.5 million.

To learn more about Stockmann and Lindex’s financial results, you can refer to the following useful links:
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