Stockmann, the department store operator based in Finland, has released its third-quarter earnings report, shedding light on the impressive performance of its womenswear brand, Lindex. While the company’s overall group revenue took a hit, declining by 7% to €226.9 million, Lindex experienced a 4.9% increase in revenue when measured in local currencies.

However, the news wasn’t as positive for Stockmann’s performance. The department store operator saw its revenue drop from €77.1 million to €64.7 million, primarily attributed to the timing of its Crazy Days promotional campaign. Despite improvements in gross margin, Stockmann’s adjusted operating profit decreased to €20.6 million from €22 million. On the other hand, Lindex managed to increase its adjusted operating profit from €22.5 million to €26.2 million.

Looking ahead, Stockmann anticipates its annual revenue to range between €940 million and €1 billion. The adjusted operating profit is projected to be between €65 million and €85 million, contingent upon fluctuations in foreign exchange rates. In an effort to enhance profitability and accelerate Lindex’s growth, the company is focused on repositioning Stockmann towards luxury and affordable luxury. Both divisions are investing in digitalization to meet customer expectations and improve overall efficiency.

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