Preliminary information on Stockmann’s revenue and operating profit in 2017
STOCKMANN plc, Inside Information 11.1.2018 at 16:30 EET
According to preliminary financial information, the Stockmann Group’s revenue was approximately EUR 315 million in the fourth quarter of 2017. Revenue in comparable businesses* was on a par with the previous year. Lindex’s revenue in comparable stores was down by 1% in the quarter. Stockmann Retail’s fourth-quarter revenue was on a par with the previous year in comparable businesses. The Group’s revenue for the full year 2017 amounted to approximately EUR 1 056 million, down by 1% in comparable businesses.
The Stockmann Group’s operating profit for 2017 will not reach the profit guidance published on 26 September 2017. According to preliminary information, adjusted operating profit in continuing operations in 2017 will be approximately EUR 12 million (2016: EUR 30.9 million).
Lindex’s adjusted operating profit is estimated to be approximately EUR 13 million (2016: EUR 54.9 million), which is significantly lower than in the previous year. The gross margin in Lindex operations has remained on a low level, and cost savings with its profitability improvement programme will be reached only in 2018. Both Stockmann Retail and Real Estate divisions will improve their operating results in 2017, compared to the previous year. However, costs in Stockmann’s operations were also higher than targeted in the fourth quarter.
Figures are based on unaudited preliminary financial information in continuing operations.
Previous guidance for 2017 (published on 26 September 2017)
Stockmann expects the Group’s revenue for 2017 to decline due to weaker sales development of Lindex, and changes in the store network and product mix. Adjusted operating profit in continuing operations is expected to be approximately on a par with or slightly weaker than in 2016.
Stockmann will publish its financial statements bulletin on 14 February 2018.
*Revenue in comparable businesses refers to revenue excluding divested and closed units, i.e. Stockmann Delicatessen in Finland, Hobby Hall, Oulu department store, and Lindex stores in Russia.
Kai Laitinen, CFO, tel. +358 9 121 5800