CEO's review

 


CEO Lauri Veijalainen,  Financial Statements Bulletin 2017 (14.2.2018):

Stockmann achieved a positive operating result in 2017, but the result declined from the previous year. Lindex’s performance was not satisfactory, so we have initiated firm measures to ensure its turnaround. Susanne Ehnbåge will start as the new CEO of Lindex at the latest in August. Stockmann Retail and Real Estate both continue to head in the right direction with visibly improved results in 2017. We must however increase the speed of the transformation.

Stockmann Retail’s operating result improved by EUR 18.5 million, thanks to increased comparable revenue and significantly decreased costs. The best development was achieved in the online store and in the Baltic department stores. However, in the fourth quarter we didn’t maintain the good progress of the first three quarters of the year, and the outcome was lower than expected. The result for the whole year remained at a loss. Our main target in 2018 is for Stockmann Retail’s adjusted operating result (EBIT) to be positive.

Real Estate continued its good growth in revenue and operating profit in 2017. Also the fair value of Stockmann’s properties improved. Lindex’s operating profit fell significantly in 2017 as the revenue declined in the main markets. Its performance did, however, improve towards the end of the year, with an operating profit of EUR 10 million in the last quarter.

We are entering 2018 from a somewhat more challenging starting point, and the first-quarter operating result will still remain on a low level. The past year shows that our operations must be able to respond more quickly to rapid changes both in the market and in customer behaviour. We will invest more heavily in digitalisation, secure sales, and boost the implementation of efficiency measures in order to improve our results.