CEO's review

 

CEO Jari Latvanen,  Stockmann Group’s Half year financial report Q2/2022 (22.7.2022):

Stockmann Group’s second-quarter result in 2022 improved significantly, thanks to Lindex’s strong performance and improved sales in both divisions. The net sales for the quarter grew by 18.9% in comparable terms, totalling EUR 269.0 million. The operating result for Q2 strongly improved from EUR 26.4, to 114.5 million, and alongside the operational improvement the result was postively impacted by the sale-and-leaseback of the Helsinki Flagship store.

Our comparable and adjusted operating profit totalled EUR 35.4 million, representing an increase of some EUR 9 million. Stockmann Group’s profitable growth is based on the right strategic choices and their successful execution. Our quarter-result has improved for six consecutive quarters and for the last 12 months has more than doubled compared to the level of  2019.

The Lindex division achieved especially good performance in all main markets, which resulted in a record Q2 and half-year result. In Q2, net sales grew by EUR 26.0 million and operating profit increased by EUR 6.7 million. Sales and profitability improved significantly thanks to the good performance in the physical stores during the quarter. Lindex’s total sales are now 21.9% higher than during 2019 in comparable currencies.

The Stockmann division also achieved a good result in Q2. Sales grew by 22.6% and the comparable adjusted result increased by EUR 2.6 million. The department stores are now almost on a break-even level on a rolling 12 basis due to increased customer traffic in the stores, improved margins and cost structure. 

The sale-and-leaseback of the Helsinki Flagship store took place in April and Stockmann will further develop the property together with the new owner. The sale-and-leaseback affected the operating result positively in the quarter. In April the Board of Directors approved the decision to build a new omni-channel logistics centre for Lindex to enable further growth. 

The systematic implementation of sustainability initiatives continued in both divisions. During Q2, the Lindex division invested in a new fibre based on an innovative process for large-scale recycling of textiles. Lindex also opened a pop-up store selling second-hand baby clothes and had a pre-launch of the new femtech brand Female Engineering. As part of systematic work within the environmental field the Stockmann division accomplished the ISO 14001 environmental management system audit for Finland. The Stockmann division also extended the textile recycling pilot to all the capital region department stores in Finland in cooperation with the Helsinki Region Environmental Services Authority HSY.

I would like to thank our teams in both divisions for their major contributions to the company and efforts to serve our customers, and also for the resilience during the exceptional occurrences in the operating environment which have affected Stockmann operations significantly during the last very challenging years.