Finnish retail company Stockmann has reported positive financial results for 2021, signaling a strong turnaround in its business operations. Both divisions of the company, Stockmann department stores and the Lindex brand, performed exceptionally well during the fourth quarter, with Lindex achieving its highest-ever full-year figures.
In Q4, Stockmann Group experienced a 17.2% increase in consolidated revenue, amounting to €277.5 million, on a currency-neutral basis. However, there was a slight decline in the gross margin, which dropped from 58% to 57.7%. Despite this, the company reported a significant improvement in operating profit for the quarter, amounting to €50.6 million, compared to a loss of €256 million in the same period the previous year. The adjusted operating profit for the quarter reached €29.6 million, compared to a loss of €3.3 million previously.
For the full year, Stockmann Group witnessed an 11.2% rise in consolidated revenue, totaling €899 million. Moreover, the company experienced an increase in the gross margin from 56.1% to 58.6%. The operating profit for the year amounted to €82.1 million, indicating a major improvement compared to the loss of €269.6 million recorded in 2020. The adjusted operating profit for the year reached €68.3 million, marking a significant improvement from the loss of €12.3 million.
Stockmann remains positive and optimistic about the future, anticipating further revenue growth and a “clearly positive” adjusted operating profit for the current year. CEO Jari Latvanen attributes the strong performance to the company’s ability to adapt quickly to the ongoing Covid-19 situation, improved sales, and effective marketing strategies.
Both of Stockmann’s divisions, Lindex and Stockmann, performed exceptionally well individually. Lindex achieved an improvement of €9.4 million in adjusted operating profit for the fourth quarter, with its full-year adjusted operating profit reaching an all-time high of €80.3 million. Similarly, Stockmann had a successful fourth quarter, experiencing an improvement of €23.8 million in adjusted operating profit. For the full year, the division’s adjusted operating profit increased by €38.3 million, despite reporting a loss due to challenges faced in the first half.
The Covid-19 pandemic posed significant challenges to international logistics and resulted in a decrease in customer footfall throughout 2021. However, there has been a recovery in visits to department stores and fashion stores compared to 2020, and online shopping has continued to grow strongly throughout the year. Stockmann remains confident in its ability to navigate the changing retail landscape and capitalize on the opportunities presented by shifting consumer behavior.
Additional Links:
1. Stockmann Official Website
2. Lindex Official Website
