Stockmann Group’s Financial Statements Bulletin 2020

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Challenging full year ended with profitable adjusted fourth quarter

STOCKMANN plc, Financial Statement Release, 5.3.2021 at 8.00 EET

October–December 2020:
- Consolidated revenue was EUR 232.0 million (285.7), down 18.1% in comparable currency rates.
- Gross margin was 58.0% (56.6).
- Operating result was EUR -238.4 million (25.1).
- The adjusted operating result was EUR 14.2 million (30.7).
- Earnings per share were EUR -3.33 (0.02).
- Adjusted earnings per share were EUR 0.26 (0.07).
- Restructuring programme proposal was submitted to Helsinki District Court on 14 December 2020 (Stock Exchange Release 14 December 2020).

January–December 2020:
- Consolidated revenue was EUR 790.7 million (960.4), down 16.9% in comparable currency rates.
- Gross margin was 56.1% (56.3).
- Operating result was EUR -252.4 million (24.1).

- The adjusted operating result was EUR 4.9 million (39.8).
- Earnings per share were EUR -4.05 (-0.72).
- Adjusted earnings per share were EUR -0.48 (-0.63).
- Stockmann plc filed for corporate restructuring on 6 April 2020 (Stock Exchange Release 6 April 2020).

The Board of Directors will propose that no dividend will be paid for the financial year 2020.

Stockmann changed from the revaluation model to a cost model for its property, plant and equipment in the financial year 2020. The change in accounting policy has been implemented retrospectively in the opening balance for the comparative period as of 1 January 2019.

Stockmann recognised EUR 250 million in impairment related to Lindex’s goodwill. The write-down is reported as an adjustment. (Stock Exchange Release 28 January 2021).

Guidance for 2021:
The prolonged COVID-19 pandemic gives rise to a lack of clarity in Stockmann’s business environment. As the outlook Is unclear, Stockmann will provide a new guidance when the market visibility improves.

CEO Jari Latvanen:
Despite the challenges caused by the COVID-19 pandemic, the fourth quarter was profitable. Customer behaviour was not unduly affected by the COVID-19 situation and the Christmas sales were closer to the normal level. Under the circumstances Lindex’s performance was strong and Stockmann also performed close to expectations.

Stockmann updated its strategy to meet the changes in the operating environment and at the same time integrated the corporate social responsibility (CSR) strategy into its business strategy and operations. The Group continued to develop both the brick-and-mortar stores and e-commerce with a focus on the omni-channel customer experience. Lindex expanded its digital global presence on third-party platforms and opened an e-com site in the Chinese market with its baby clothing assortment on T-mall, one of the world’s largest e-commerce platforms. E-com share of total revenue increased from 6.3% to 16.0%.

The consolidated revenue in 2020 amounted to EUR 790.7 million and the adjusted operating result was EUR 4.9 million. Both divisions improved their operational efficiency by developing processes and implementing significant cost saving measures which will continue during 2021. The proposal for Stockmann plc’s restructuring programme was filed and published on 14 December 2020

In 2021 Lindex will continue to develop globally strong brand offerings, its transformation to a sustainable business model and to a global, digital first multi-channel business.

In 2021 Stockmann will concentrate its efforts on achieving the targets of the restructuring programme approved by the Helsinki District Court on 9 February 2021. We are grateful for the support we received from our creditors and stake holders for the revised strategy and the restructuring programme. This provides a very solid ground to start the restructuring programme that has an eight-year time span.

Stockmann will continue its customer-focused strategy and offers a superior customer experience within the fashion, home, beauty and food and beverage categories in all the channels it operates in and will become a true omni-channel player. 



Revenue, EUR mill. 232.0 285.7 790.7 960.4
Gross margin, % 58.0 56.6 56.1 56.3
Operating result (EBIT), EUR mill. -238.4 25.1 -252.4 24.1
Adjusted operating result (EBIT), EUR mill. 14.2 30.7 4.9 39.8
Result for the period, EUR mill. -246.8 4.0 -291.6 -45.6
Earnings per share,
undiluted and diluted, EUR
-3.33 0.02 -4.05 -0.72
Personnel, average 5 651 6 924 5 991 7 002
Cash flow from operating activities, EUR mill. 38.2 69.9 147.4 102.3
Capital expenditure, EUR mill. 4.8 9.6 19.4 33.8
Equity per share, EUR 2.90 6.52
Net gearing, % 336.1 191.7
Equity ratio, % 14.6 27.8

Where applicable, figures have been adjusted to correspond the change in accounting policy.


EUR million

Operating result (EBIT) -238.4 25.1 -252.4 24.1
Adjustments to EBIT
Lindex goodwill impairment 250.0 250.0
  Restructuring and transformation measures 2.7 5.8 7.3 15.2
  Gain on sale of properties -0.3 0.4
Adjustments total 252.7 5.5 257.3 15.6
Adjusted operating result (EBIT) 14.2 30.7 4.9 39.8


Stockmann Group has consisted of the Lindex and Stockmann business divisions since July 2019.

Lindex’s purpose is to empower and inspire women everywhere. We do that through actions as a company and through a progressive fashion experience. Our customers, co-workers and partners are all part of this ambition. We are digital first and powered by people. We promise customers fashion that feels good in all aspects. To fulfil our purpose and vision, we have made a promise – to make a difference for future generations. The purpose includes all dimensions of sustainability and is divided into three areas: empower women, respect the planet and ensure human rights.

In Lindex long term strategy, we aim to be a global, brand-led, sustainable fashion company. This means growth in digital revenue, both in our own e-com as well as in collaborations with global digital platforms, improved cost efficiency but also growth with new businesses while at the same time meeting our sustainability targets.

Stockmann’s purpose in all encounters with its customers, partners, employees and other stakeholders is to make a new impression, every day! Our vision is to create a marketplace for a good life. We will become a destination for everyday inspiration and fulfilment in fashion, beauty, home and food & beverage following the ancient logic of the marketplace: the central part of town that has always been there and will always be there, yet never remains the same. For customers the Stockmann promise is to create a feeling that lasts! This is what makes us meaningful to customers and expresses how we differ from the competition.

Customer centricity, i.e., the capability to understand customers and to serve them in the way they choose and to provide a unique customer experience, is the core of the strategy. The journey to customer centricity focuses on gaining a better understanding of customers’ needs, their life stages, different occasions and offering a fitting Stockmann style for these. Furthermore, the focus is on providing a seamless digital and physical experience, relevant and personalised dialogue, a curated selection and inspiring destination, and relevant premium services topped off with personalised high-quality customer service.

For the strategy period our ambition is to improve profitability and returns. Stockmann financial priorities for the strategy period are: Revenue growth, improve profitability and return on investments, discipline in costs and in capital allocation.


The COVID-19 pandemic, which broke out in Europe after the first week of March, caused significant changes in Stockmann Group’s operating environment with customer volumes decreasing suddenly. Despite continued strong growth in the online sales of the Stockmann division and Lindex, the online sales growth was not sufficient to compensate for the significant decline in customer volumes in these exceptional circumstances.

The Board of Directors of Stockmann decided, taking into consideration the company’s financial structure, to file for corporate restructuring of the parent company Stockmann plc on 6 April 2020.

Group subsidiaries, including Stockmann department stores in the Baltic countries and Lindex, were not in the scope of the restructuring proceedings.

On 8 April 2020, the District Court of Helsinki ruled to initiate the corporate restructuring proceedings of Stockmann plc in accordance with the Restructuring of Enterprises Act. The District Court appointed Attorney Jyrki Tähtinen of Borenius Attorneys Ltd as the administrator of the restructuring proceedings.

On 17 August 2020, the administrator provided all parties concerned with a report of Stockmann plc’s assets, liabilities and other undertakings (as per 8 April 2020) and on the circumstances that affect the financial position of the company and its expected development. The administrator stated that the preconditions for viable business exist and that a solid restructuring programme can be established.

On 14 December 2020, the administrator filed a proposal for the restructuring programme for the company with the Helsinki District Court.

The District Court approved the programme on 9 February 2021. The restructuring programme is based on the continuation of Stockmann’s department store operations, the sale and lease-back of the department store properties located in Helsinki, Tallinn and Riga and the continuation of Lindex’s business operations as a fixed part of the Stockmann Group.


The COVID-19 pandemic, which broke out in Europe after the first week of March, caused significant changes in Stockmann Group’s operating environment and customer volumes decreased suddenly. The negative effects of the pandemic on the market environment persisted in the second quarter. The national restrictions were partially lifted in May, which was reflected as a positive development in customer flows at the Stockmann department stores and Lindex stores. During the third quarter,

Stockmann’s business operations normalised gradually. Visitor trends in the brick-and-mortar stores started to recover towards a normal level until the changes resulting from the COVID-19 pandemic affected the business at the end of the period.

Stockmann’s and Lindex’s online stores both performed very well with improved sales during the third quarter, and Lindex’s online sales almost fully compensated for the decline in the sales of the brick-and-mortar stores. During the fourth quarter the pandemic continued to have a negative impact on business, especially in customer volumes in brick-and-mortar stores. The digital sales were not able to fully compensate for the decline despite the strong increase in e-commerce.

During the fourth quarter other operating income came to EUR 1.6 million as a result of public funding related to the COVID-19 situation, which has been received mainly by Lindex, in various countries from government authorities or other corresponding public bodies. Other operating income for the whole year was EUR 9.7 million.


The prolonged COVID-19 pandemic gives rise to a lack of clarity in Stockmann’s business environment. As the outlook Is unclear, Stockmann will provide a new guidance when the market visibility improves.


Uncertainty in the global economy is expected to persist throughout 2021, and the COVID-19 pandemic is having a significant impact on the economy across the world, until coronavirus situation is under better control. The retail market is expected to remain challenging due to changes in consumer behaviour and confidence, which are also affected by the coronavirus situation.

The Stockmann division will begin to execute the restructuring programme in 2021. Lindex will continue to drive efficiencies and explore new growth opportunities.


Stockmann will publish a separate Corporate Governance Statement for 2020 in line with the recommendation by the Finnish Corporate Governance Code. The statement will be published during the week starting on 15 March 2021 (week 11).

Financial Statements Bulletin 2020
This company announcement is a summary of the Stockmann's Financial Statements Bulletin 2020 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company's website at

The press and analyst briefing will be held today, on 5 March 2021 at 10:00 as a live webcast, that can be followed by this link or on the address The recording and presentation material are available on the company's website after the event.

Further information:
Jari Latvanen, CEO, tel. +358 9 121 5606
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351


Jari Latvanen

Nasdaq Helsinki
Principal media