CEO's review

 

CEO Jari Latvanen,  Stockmann Group’s Interim Management Statement Q1/2022 (29.4.2022):

Stockmann Group had a positive first quarter and both divisions continued to improve their business clearly. The Group’s operating result improved by EUR 37.4 million to EUR 9.8 million compared to the reference period. Adjusted operating result excluding selling the Riga real estate improved by EUR 17.4 million to EUR -3.7 million. 

Lindex returned a very strong result: the adjusted operating result improved by EUR 13.1 million to EUR 5.5 million. The Stockmann division achieved an excellent result, improving its adjusted operating result by EUR 4.8 million to EUR -7.3 million. The first quarter is typically negative for both divisions due to seasonal variation.

Lindex generated the strongest first-quarter sales and operating profit ever, due to increased sales in all channels and business areas. Sales in the brick-and-mortar stores increased by 47.5% compared to the same period in the previous year, while the digital sales, including both online and third-party sales, generated 8.2% growth. This, together with good margins and good cost control, contributed to the good operating result for the division.

The Stockmann division’s revenue grew by 9.2%. Sales in the brick-and-mortar stores increased because of higher visitor volumes and changed the balance between the sales channels. The brick-and-mortar stores generated 87.8% (78.8) and the online store 12.2% (21.2) of sales. The sales during the Crazy Days campaign improved significantly compared to the campaign last spring.

Stockmann’s department store properties in Tallinn, Riga and Helsinki are now sold, and the proceeds from the sale have been used to repay fully both the secured restructuring debts and the undisputed unsecured restructuring debts that were subject to the corporate restructuring payment programme. 

After selling the department store properties, Stockmann’s balance sheet is stronger, with significantly lower interest-bearing debts as the illustrative balance sheet shows. 

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.