Stockmann, the Finnish retail group known for its ownership of the Lindex chain, has experienced a 7.1% decline in consolidated revenue during the first quarter of this year. Despite this drop in revenue to €155.7 million, the company’s gross margin actually increased from 54.2% to 56.3%. Furthermore, compared to the previous year, the operating loss of the company slightly narrowed from €27.8 million to €27.7 million, and on an adjusted basis, the operating loss decreased even further to €21.1 million.

CEO Jari Latvanen praised Stockmann for its improved performance, especially considering the significant impact of the ongoing pandemic. He acknowledged that the current period was more severely affected by the pandemic compared to a year ago. However, the company managed to benefit from strong growth in its e-commerce sector.

Both Stockmann and Lindex experienced significant digital growth through their respective webstores. Stockmann’s online sales displayed significant improvement, with its major Crazy Days sales campaign in March slightly surpassing the results of the previous year. Lindex also performed well, mainly due to successful collaborations with partner e-tail platforms. The company’s gross margin was bolstered by favorable currency effects, efficient stock handling, and improved intake margins.

In early February of this year, Stockmann completed the restructuring process, ensuring the continuation of its department store operations and the Lindex chain. However, the company has decided to sell and lease back its department store properties in Helsinki, Tallinn, and Riga.

Due to the ongoing uncertainty caused by the pandemic, Stockmann has chosen not to provide any guidance for the remainder of the year. The company highlighted that the coronavirus continues to heavily impact its operating environment and customer volumes. While e-commerce has experienced strong growth, it has not been able to fully offset the lost sales from physical stores.

Useful links:
Stockmann Official Website
Lindex Official Website