Stockmann Group’s Interim Management Statement, 1 January – 31 March 2021
Improved adjusted result despite strict COVID-19 restrictions
STOCKMANN plc, Interim report, 30.4.2021 at 8.00 EET
January–March 2021:
- Consolidated revenue was EUR 155.7 million (168.4), down 7.1% in comparable currency rates.
- Gross margin was 56.3% (54.2).
- Operating result was EUR -27.7 million (-27.8).
- The adjusted operating result was EUR -21.1 million (-26.7).
- Earnings per share were EUR -0.41 (-0.52).
- Adjusted earnings per share were EUR -0.32 (-0.50).
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. (Unchanged)
CEO Jari Latvanen:
Stockmann Group improved its result compared to the previous year despite tightened COVID-19 restrictions. The rapidly changing operating environment and COVID-19 restrictions were the reason for the lower level of turnover than in the reference period. Cost adjustment measures and the strong growth of e-commerce compensated for the challenging situation.
Both divisions showed a very strong digital growth in their own channels and Lindex additionally in collaborations with partners’ platforms. Lindex had better gross margin due to favourable currency effect together with successful stock handling and better intake margins. The Stockmann division's online sales improved significantly and the major campaign Crazy Days in March Q1 slightly exceeded last year.
Stockmann's restructuring programme was approved on 9 February and the implementation is proceeding systematically. As a result of the renegotiated rental agreements the level of lease liabilities decreased significantly and the cash situation is good.
KEY FIGURES
|
1–3/2021 |
1–3/2020 | 1–12/2020 | |
| Revenue, EUR mill. | 155.7 | 168.4 | 790.7 |
| Gross margin, % | 56.3 | 54.2 | 56.1 |
| Operating result (EBIT), EUR mill. | -27.7 | -27.8 | -252.4 |
| Adjusted operating result (EBIT), EUR mill. | -21.1 | -26.7 | 4.9 |
| Result for the period, EUR mill. | -29.5 | -35.3 | -291.6 |
| Earnings per share, undiluted and diluted, EUR | -0.41 | -0.52 | -4.05 |
| Personnel, average | 5 331 | 6 599 | 5 991 |
| Cash flow from operating activities, EUR mill. | -16.9 | -22.4 | 147.4 |
| Capital expenditure, EUR mill. | 2.4 | 6.3 | 19.4 |
| Equity per share, EUR | 2.41 | 5.75 | 2.90 |
| Net gearing, % | 373.7 | 227.0 | 336.1 |
| Equity ratio, % | 12.9 | 24.9 | 14.6 |
CORPORATE RESTRUCTURING PROCEEDINGS
By a decision on 9 February 2021, the Helsinki District Court approved Stockmann plc’s restructuring programme, and the restructuring proceedings have ended. Attorney Jyrki Tähtinen was appointed supervisor of the restructuring programme. 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.
COVID-19
The COVID-19 pandemic, which broke out in Europe after the first week of March 2020, is still causing significant changes in Stockmann Group’s operating environment and customer volumes. During the first quarter in 2021, the pandemic continued to have a negative impact on business, especially in customer volumes in the brick-and-mortar stores. The online sales were not able to fully compensate for the decline despite the strong increase in e-commerce.
During the first quarter other operating income came to EUR 1.5 million as a result of public funding related to the COVID-19 situation received mainly by Lindex in various countries. The sales in both divisions increased in March compared with the previous year.
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. (Unchanged)
MARKET OUTLOOK FOR 2021
Uncertainty in the global economy is expected to persist throughout 2021, and the COVID-19 pandemic will continue to have a significant impact on the economy across the world, until the 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 continue to execute the restructuring programme and Lindex to drive efficiencies and explore new growth opportunities.
Interim Management Statement
This company announcement is a summary of the Stockmann's Interim Management Statement for 1 January – 30 March 2021 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 stockmanngroup.com.
Webcast
The press and analyst briefing will be held on 30 April 2021 at 10:00 as a live webcast, that can be followed by this link or on the address stockmanngroup.com. 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, puh. +358 9 121 3351
Henna Tuominen, Director, Communications, CSR and IR, tel. +358 50 5705080
STOCKMANN plc
Jari Latvanen
CEO
Distribution:
Nasdaq Helsinki
Principal media