The owner of women’s clothing brand Lindex, Finland-based department store operator Stockman, released its third-quarter figures and said Lindex is continuing its “strong performance.”
The company, which is considering a name change to reflect the brand’s growing importance to the business, actually said group revenue fell 7% to €226.9 million in the three months to the end of September with a 1.7% drop in local currencies.
But the Lindex division managed to increase its revenue in local currency with an increase of 4.9%, even though reported revenue fell to 162.3 million euros from 166.9 million euros.
Meanwhile, the Stockmann division performed worse, mainly due to the timing of its Crazy Days promotional campaign, which ran in October this year instead of starting in September as it did a year ago. This meant that revenue fell from €77.1 million to €64.7 million.
While the group’s overall gross margin improved to 58.5% from 56.8%, its adjusted operating profit fell to €20.6 million from €22 million a year earlier, although it improved slightly in currency terms. local.
At Lindex, adjusted operating profit rose to €26.2 million from €22.5 million with a “significant” improvement in local currencies. But at Stockmann, the adjusted operating result was a loss of 4.8 million euros, compared to a profit of 0.2 million euros, again linked to the timing of the promotional campaign.
For the full year, Stockmann expects group revenue to be between €940 million and €1 billion and adjusted operating profit between €65 million and €85 million, subject to exchange rate fluctuations.
That guidance is based on the assumption that continued high inflation will increase costs compared to 2022 and have an adverse impact on consumer demand.
CEO Susanne Ehnbåge said: “The priorities are to improve profitability to create a strong and sustainable foundation for the future, as well as accelerate Lindex’s growth.
“The group’s underlying business is developing in the right direction. The financial situation has improved over recent months, both in terms of financing and capital, and we will continue to work to create lasting value for shareholders and improved profitability for both divisions.
“Lindex has significantly improved its profitability in recent years and will continue to grow by entering new markets and sales channels, while the Stockmann division will continue its repositioning towards luxury and affordable luxury.
“Both divisions are making considerable investments to improve their overall digitalization to meet customer expectations and improve process and cost efficiencies.”
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