Stockmann makes an expected loss for 2015 – but for the last quarter, the operating result excluding non-recurring items was back to profit, 18.5 million EUR (11.2 million).
”Stockmann’s past year was historical, as rarely has there been a year so full of changes as in 2015,” comments CEO Per Thelin.
Stockmann sold its department store business in Russia on 1 February 2016 and is now reported as discontinued operations. Continuing product areas and businesses therefore exclude Russian retail operations, Seppälä, Hobby Hall, Stockmann Beauty, the airport store and the product areas the company has withdrawn from in department stores.
”In line with our strategy, we have withdrawn from loss-making non-core businesses and product areas, and the decision to divest the Russian department stores was by far the biggest step taken in 2015,” says Per Thelin.
The Stockmann Group’s sales in January were down by 1.4 percent and amounted to 85.0 million EUR in the continuing product areas and businesses. The Group’s total sales in January were EUR 102.2 million.
Stockmann Retail’s sales in the continuing product areas and businesses were down by 10.1 percent. The decline was according to plan and due to lower merchandise volumes in the season sale than in the previous year. In Finland, sales were down by 10.6 percent and by 7.7 percent in the Baltic countries.
”Particularly pleasing was that Lindex achieved its best ever fourth quarter sales due to successful Christmas campaigns. Its operating profit was up 73 percent, to 21.3 million EUR, in the quarter,” says Per Thelin.
Lindex’s sales were up 5.5 percent at comparable exchange rates. The good sales development showed growth in all countries except in Finland and Russia. Euro-denominated sales were up 6.6 per cent, or 8.1 percent excluding Russia.
For October-December 2015 the consolidated revenue was 420.0 million EUR (476.3 million)
Revenue in continuing product areas and businesses was up 1.1 percent.
For the whole 2015, the consolidated revenue was 1 434.8 million EUR (1 605.5 million)
Revenue in continuing product areas and businesses was down by 1.3 per cent.
Operating result excluding NRI was -28.5 million (-37.8 million).
”We have booked material write-offs in the 2015 result and thereby safeguarded the future. This means that Stockmann can now focus on the customer experience in Stockmann department stores, Lindex stores and their online stores, and the real estate business. The first effects of our strategic actions are gradually emerging in our financial results.”
Stockmann expects the Group’s revenue for 2016 to be down on 2015 due to on-going strategic actions in order to improve profitability. The operating result excluding non-recurring items is expected to be slightly positive in 2016.
”We begin the year 2016 with a better starting position than a year ago, but there is still a lot to be achieved. Boosting the profitability of Stockmann Retail is essential, in order to achieve the turnaround. Our target is to make a slightly positive operating result for the Group in 2016. All steps taken will drive us towards this goal,” comments Per Thelin.
Sales (exclusive of VAT) in January