Stockmann reports improving results, Lindex has best-ever Q1 sales
Lindex owner Stockmann Group said it had “a positive first quarter with clearly improved results across both divisions”. The company’s group revenue reached €196.1 million in the period to the end of March, up 27.1% at comparable currency rates, and the gross margin increased to 57.8% from 56.3%.
Operating profit swung to earnings of €9.8 million from a loss of €27.6 million a year ago, although adjusted operating profit was actually a loss of €3.7 million. But again, this was an improvement compared to the loss of €21.1 million in the previous year. Adjustments in Q1 were mainly excluding the gain from selling its Riga property for €14.1 million.
Stockmann expects an increase in its revenue this year and that the adjusted operating result “will be clearly positive”. But it added that “geopolitical instability in the world with high inflation and challenges in the supply chains and international logistics as well as the challenges of Covid-19 restrictions require that both divisions have to be adaptive and flexible to meet the future”.
The company said that during Q1, Lindex “returned a very strong result”. The adjusted operating result improved by €13.1 million to €5.5 million.
Lindex generated its strongest first-quarter sales and operating profit ever, due to increased sales in all channels and business areas. Sales in physical stores increased by 47.5% year-on-year, while digital sales, including both online and third-party sales, saw 8.2% growth.
And the Stockmann division “achieved an excellent result”, improving its adjusted operating result by €4.8 million to a loss of €7.3 million. The company added that Q1 is “typically negative for both divisions due to seasonal variation”.
The division’s revenue grew by 9.2%. Sales in its stores increased because of higher visitor volumes and changed the balance between the sales channels. The stores generated 87.8% of its sales compared to 78.8% a year ago and the online store 12.2% compared to 21.2% of sales in Q1 last year. Its sales during the Crazy Days campaign “improved significantly compared to the campaign last spring”.
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