Stockmann upbeat as department stores and Lindex improve

By

Sandra Halliday

Published
Feb 25, 2022

Finland’s Stockmann — owner of its eponymous department stores and the Lindex brand — has reported 2021 and fourth-quarter results and said it was a year of “a strong turnaround”, with both divisions buoyant in Q4 and Lindex achieving its best-ever full-year figures. 

Group Q4 consolidated revenue rose 17.2% currency-neutral to €277.5 million, but the gross margin dropped to 57.7% from 58%. Importantly, it made an operating profit of €50.6 million, much better than the loss of €256 million in the previous Q4. Its adjusted operating profit was €29.6 million, up from a €3.3 million loss previously.

In the full year, consolidated revenue rose 11.2% to €899 million and the gross margin rose to 58.6% from 56.1%. Operating profit was up to €82.1 million from a loss of €269.6 million in 2020 and adjusted operating profit was €68.3 million, up from a €12.3 million loss.

And for this year, the company expects an increase in revenue and a “clearly positive” adjusted operating profit.

CEO Jari Latvanen said: “Stockmann Group’s fourth quarter was strong despite the continuing pandemic.” And profits improved “as a consequence of agile adaptation to the Covid-19 situation, enhanced sales and strong marketing activities”.

Within the individual divisions, Lindex performed “extremely well” and adjusted operating profit for the fourth quarter improved by €9.4 million. As mentioned, adjusted operating profit for full-year 2021 was Lindex’s best result so far, at €80.3 million. 

The Stockmann division also had a “good” fourth quarter. Adjusted operating profit improved by €23.8 million while for the full year it was up by €38.3 million, but it remained loss-making for the year because of the very challenging first half. 

The pandemic “created challenges for international logistics and significantly reduced customer footfall during 2021”. But visits to department stores and fashion stores picked up compared to 2020, and online shopping also continued to grow strongly in 2021.