Stockmann's outlook for 2018

Q1 Interim Report, published 27.4.2018:

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. Consumer confidence is also 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 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 improving 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 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.