Stockmann, the Finland-based department store operator and proud owner of the Lindex womenswear brand, has just unveiled its Q3 financial results. The standout star in this report? Lindex, which continues to shine brightly.
While the group’s overall revenue dipped by 7% to €226.9 million in the three months ending in September, with a 1.7% decrease in local currencies, Lindex charted a remarkable course. It achieved a 4.9% revenue growth when measured in local currencies, despite reported revenue falling from €166.9 million to €162.3 million.
In contrast, Stockmann’s performance faced headwinds. The primary factor was the timing of its Crazy Days promotional campaign, which kicked off in October this year, a month later than in the previous year. This shift resulted in Stockmann’s revenue dropping from €77.1 million to €64.7 million.
Although the group’s overall gross margin improved to 58.5% from 56.8%, the adjusted operating profit decreased from €22 million to €20.6 million compared to the previous year. However, it did exhibit some improvement when viewed in local currencies. In sharp contrast, Lindex’s adjusted operating profit witnessed significant growth, soaring from €22.5 million to €26.2 million, with a substantial improvement in local currencies. Unfortunately, Stockmann’s adjusted operating result incurred a loss of €4.8 million, down from a profit of €0.2 million, due to the promotional campaign’s timing.
Looking ahead to the full year, Stockmann anticipates the group’s revenue to fall within the range of €940 million to €1 billion, with an adjusted operating profit projected between €65 million and €85 million, factoring in foreign exchange rate fluctuations.
CEO Susanne Ehnbåge emphasized the company’s commitment to improving profitability and accelerating Lindex’s growth. She mentioned that both divisions are making substantial investments in enhancing their digitalization to meet customer expectations and improve overall process and cost efficiency.