Stockmann's outlook for 2018

Interim report Q3 2018, published 26.10.2018:

In the Stockmann Group’s largest operating countries, Finland and Sweden, the general economic situations have improved and the GDP growth has continued in 2018. Consumer confidence has also continued its positive development. A similar development is expected for the rest of the year.

However, purchasing behaviour is changing due to digitalisation and increasing competition. This is reflected in the outlook for the fashion market in Finland and Sweden, which according to Stockmann’s management estimate is not developing as well 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 to improve the Group’s long-term competitiveness and profitability. The efficiency measures launched at Lindex at the end of 2017, and at Stockmann in the beginning of 2018, have mostly been implemented and they will be fully visible in the 2019 operating costs.

Capital expenditure for 2018 is re-estimated to be approximately EUR 35 million, which is less than the estimated depreciation for the year.

Guidance for 2018

Stockmann expects the Group’s revenue for 2018 to decline on the previous year (updated). Adjusted operating profit is expected to improve in 2018 (unchanged).