Stockmann’s revenue was down in the first quarter, mostly due to the timing of the Crazy Days campaign in the department stores.
But now the loss-making divestments are completed.
”The Hobby Hall divestment completes Stockmann’s strategic aim to withdraw from the non-core businesses,” comments Interim CEO Lauri Veijalainen.
From January-March 2016, the consolidated revenue was 273.1 million EUR (345.8 million)
Revenue in continuing product areas and businesses was down 12.5 per cent, mostly due to the timing of the Crazy Days campaign. The campaign, which took place after the reporting period, and which celebrated its 30thanniversary, achieved a reasonable result with sales growth in fashion and cosmetics.
Operating Q1-result was -30.3 million EUR (-42.0 million).
Result for the period was -31.6 million ( -47.2 million).
”We have divested several loss-making operations, including the Russian retail business, which took place in February as planned. Stockmann Retail has also withdrawn from several loss-making product areas, Real Estate has introduced several new tenants to our properties and Lindex has continued its stable growth. We can also now announce that we have found a new owner for Hobby Hall, and this divestment completes Stockmann’s strategic aim to withdraw from the non -core businesses,” comments Interim CEO Lauri Veijalainen.
Lindex continued its successful growth with good development in its main markets in the Nordic countries. Seven stores in Russia were closed during the first quarter, and the remaining three stores will be closed by mid May 2016.
The new Stockmann online store is expected to be launched in the second half of 2016 and a new, more efficient distribution centre will open in May 2016, which will combine the existing warehouses into one. The current warehouses in Finland will be moved in stages to the new centre in 2016 and from Riga in 2017.
During the first quarter, XS Toys opened its toy store in the department store in Riga and will open its store in the Tallinn department store in August. The cooperation will also expand to Finland, as XS Toys will open stores in the Turku, Tampere, Jumbo and Itis department stores before the Christmas season in 2016. In addition, agreements were signed for the Gastrobar in the Helsinki flagship store, Isku home decoration store in the Book House building in Helsinki, and Scandinavian Outdoor and Halti outdoor stores in Tampere and Turku department stores.