CEO's comment

 


CEO Lauri Veijalainen in the interim report 28 October 2016:

"Stockmann continues to implement its strategy by focusing on its core businesses, Stockmann Retail, Real Estate and Lindex. In the third quarter, the Group’s operating result of EUR 2.9 million (EUR -10.6 million) improved for the sixth consecutive quarter. Particularly gratifying was the fact that, for the first time in three years, the third-quarter Group result was positive.

The results are gradually starting to follow the right track. The Group’s gross margin improved during the quarter, to 54.8 per cent, with improvements made in both Stockmann Retail and Lindex. Lindex continued its earnings growth, though the September sales were weak in the Swedish fashion market for retailers. Stockmann Retail improved its operating result due to several cost savings measures through the efficiency programme, although sales were below expectations and the turnaround must be sped up. During the quarter we successfully continued the refurbishments in the Helsinki flagship store and the renovation of the Delicatessen in the Turku department store. In addition, we made major reorganisations of our operations during the summer.

Real Estate’s performance was continuously stable, with the situation in the Nevsky Centre in St Petersburg improving as the occupancy rate rose during the quarter through new signed tenant agreements. As a change to the current strategy, the Board of Directors has decided to investigate a possible divestment of the Nevsky Centre.

The Crazy Days campaign took place in October, after the end of the quarter. We are rather satisfied with the results, and this is a good starting point for the last quarter of the year. We will put all of our efforts into the upcoming Christmas season to ensure successful results, as they play a crucial role in Stockmann’s full-year performance."