Stockmann's outlook for 2018

Financial Statements Bulletin 2017, published 14.2.2018:

In the Stockmann Group’s largest operating countries, Finland and Sweden, the general economic situations have improved and according to forecasts by the national central banks, the GDP growth is expected to continue in 2018. Also consumer confidence is estimated to continue its positive development.

However, purchasing behaviour is changing due to digitalisation and increasing competition. This is reflected in the outlook for the fashion market, which according to Stockmann’s management estimate is not increasing as rapidly as the economy in general.
In the Baltic countries, the outlook for the retail trade is, according to the management estimate, expected to be better than that for the Stockmann Group’s other market areas.

Stockmann will continue improving the Group’s long-term competitiveness and profitability. The efficiency measures launched in Lindex at the end of 2017 and at Stockmann in the beginning of 2018 will be mostly implemented during the spring and they will be fully visible in the 2019 operating costs. As the efficiency measures will not bring significant cost savings during the first quarter of 2018, the Group’s operating result in the first quarter is not likely to improve from the previous year’s level.

As a result of the profitability improvement programme, Lindex’s operating profit for the full year is expected to increase from 2017. The Stockmann Retail division, which is still loss-making, is targeting to achieve a positive adjusted operating result in 2018. Real Estate is expected to continue its stable profitable performance.

Capital expenditure for 2018 is estimated to be approximately EUR 40-45 million, which is less than the estimated depreciation for the year.

Guidance for 2018

Stockmann expects the Group’s revenue for 2018 to be on a par with the previous year. Adjusted operating profit is expected to improve in 2018.