CEO's review


CEO Jari Latvanen,  Half year financial report Q2/2021 (23.7.2021):

Both divisions improved their results. The Group’s adjusted operating profit improved from EUR 0.8 million to EUR 26.7 million during Q2. Also the Group’s cash increased during Q2 and amounted to EUR 155 million at the end of June. During the first six months, lease liabilities decreased and net gearing improved.  The restructuring debt conversions to equity and new bond, in accordance with the restructuring programme, were successfully completed in July, and they will further strengthen the financial position.  

The market started to recover and it is very positive that Lindex is even above and Stockmann is in line with market growth.  Visitor flows in brick-and-mortar stores intensified during the second quarter. Especially the fashion categories improved clearly during Q2.  

Lindex had very strong performance with improved sales and result in all markets and business areas. The sales in both physical stores and online have increased. Together with better gross margin and continued cost savings, these made a good contribution to the positive result.
The positive development is also shown in Stockmann division's profitability, which is clearly improving. By adapting the combination of marketing measures, department store development and virtual events, Stockmann has been able to react quickly to fluctuation in the market. Stockmann’s online revenue increased by 82% compared to 2019 first half and decreased by 22% compared to 2020 first half. The lack of tourists is still visible in the brick-and-mortar stores.