CEO's review

 

CEO Jari Latvanen,  Financial Statements Bulletin 2020 (5.3.2021):

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.