Lindex and Seppälä establish a new Fashion Chain Division within the Stockmann Group to accelerate growth
Helsinki, Finland, 2012-06-15 07:50 CEST (GLOBE NEWSWIRE) --
STOCKMANN plc, Company Announcement 15.6.2012 at 8:50 EET
The Stockmann Group is introducing a new organizational structure to accelerate the growth of the Lindex and Seppälä fashion chains and to strengthen the affordable fashion business. The new Fashion Chain Division includes all current operations of Lindex and Seppälä and will support their strategic aim of successful international expansion.
Both the Lindex and Seppälä brands will be further developed according to their unique brand identities while focusing on their core customer groups. The Fashion Chain Division will take shared processes and support functions into use to enable stronger cooperation between the chains and more cost-efficient operations for both brands. There will be no material one-time costs related to the changes.
Mr Göran Bille has been appointed Director, Fashion Chain Division. He also continues as the CEO of Lindex. Ms Nina Laine-Haaja continues as the CEO of Seppälä and will report to Göran Bille. Nina Laine-Haaja will also be a member of the Stockmann Group’s management committee during the transition period until the end of 2012.
The new structure will bring more clarity for the Stockmann Group’s two types of retail business: department stores and fashion stores. The Group’s operating segments in financial reporting will be the Department Store Division (Stockmann department stores, Hobby Hall, Academic Bookstore, Stockmann Beauty as well as the Bestseller and Zara franchising stores) and the Fashion Chain Division (the Lindex and Seppälä fashion chains). The new reporting structure will be used in monthly revenue releases from June 2012 onwards and in the interim report for January - June 2012, which will be published on 10 August 2012.
In 2011, Lindex’s revenue totalled EUR 624.1 million and operating profit EUR 41.2 million. Seppälä’s revenue was EUR 143.8 million and operating profit was EUR 1.4 million. In total the fashion chains made up 38 per cent of the Stockmann Group’s revenue and 55 per cent of the Group’s operating profit in 2011. At the end of March 2012, Lindex had 451 stores in 14 countries and Seppälä had 227 stores in 6 countries.