Stockmann, the Finnish retail group that owns the Lindex chain, has reported a decline in consolidated revenue for the first quarter of 2021. The company experienced a 7.1% drop in revenue, amounting to €155.7 million. Despite this decrease, Stockmann managed to narrow its losses.
The gross margin for the company increased from 54.2% to 56.3%, while the operating loss was slightly smaller compared to the previous year. It stood at €27.7 million, with a decrease from €27.8 million the year before. On an adjusted basis, the operating loss further decreased to €21.1 million from €26.7 million.
Stockmann CEO Jari Latvanen expressed satisfaction with the company’s performance, considering the significant impact of the pandemic. He pointed out the “strong growth” in their e-commerce operations as a contributing factor to the improved performance.
Both Stockmann and Lindex divisions experienced significant digital growth through their online stores. Stockmann’s online sales showed a notable improvement, with their major Crazy Days sales campaign in March even surpassing the previous year’s results. Lindex also performed well in collaboration with partner e-tail platforms. The company’s gross margin saw improvement due to favorable currency effects, successful stock handling, and better intake margins.
In February 2021, Stockmann completed a restructuring process that began last year. As part of this restructuring, the company made the decision to continue operating its department stores, including Lindex, but sold and leased back its department store properties in Helsinki, Tallinn, and Riga.
Due to the ongoing uncertainty caused by the pandemic, Stockmann did not provide any guidance for the rest of the year. The company acknowledges that the coronavirus continues to significantly impact its operating environment and customer volumes. While e-commerce has seen growth, it has not fully compensated for the sales lost through physical stores.
Useful links:
– Stockmann official website
– Lindex official website
