Finnish retailer Stockmann posts revenue of €951.7 mn in FY23

The Lindex division, part of the group's portfolio, saw its revenue decline to €633.1 million from €661.1 million. Despite the reported decrease, Lindex achieved a 2.7 per cent revenue increase in local currencies, with sales growth recorded across all primary markets. On the other hand, the Stockmann division witnessed a slight decrease in revenue to €318.5 million.

Gross margin for the group showed a modest improvement, rising to 58.2 per cent from 57.9 per cent in the previous fiscal year. The group's adjusted operating result also saw an increase to €80.0 million from €79.8 million, with significant gains in local currencies. Specifically, the Lindex division's adjusted operating result improved to €90.3 million, while the Stockmann division faced a loss with an adjusted operating result of minus €6.3 million, the company said in a media release.

The overall operating result for the group stood at €76.5 million, a substantial decrease from €154.9 million in the previous year. The net result also declined to €51.7 million due to a lower operating result and increased interest expenses for leases, despite being positively influenced by lower tax expenses. Consequently, earnings per share fell to €0.33 from €0.65.

In the fourth quarter of fiscal 2023 (Q4 FY23), the Stockmann Group's revenue slightly increased to €274.3 million from €272.6 million, with a 3.9 per cent growth in local currencies. The Lindex division's revenue dropped to €168.2 million, while the Stockmann division's revenue rose to €106.1 million.

The group maintained a stable gross margin at 57.5 per cent in Q4 FY23, with the adjusted operating result strengthening to €30.2 million. Despite a decline in the Lindex division's adjusted operating result to €22.3 million, the Stockmann division's adjusted operating result improved significantly to €9.0 million.

The operating result for the quarter was €28.9 million. However, the net result for Q4 decreased to €9.7 million, and earnings per share dropped to €0.06.

“In 2023, the Stockmann Group focused on systematically building a solid and sustainable foundation for the future for both divisions, aiming to secure a long-term growth of shareholder value. Despite the challenging market environment marked by sustained high inflation, elevated interest rates and geopolitical uncertainties, the group succeeded in enhancing its profitability. The keys to this improved performance include a strategic focus, prioritisation of key initiatives, and the team’s dedication to achieving the goals,” said CEO Susanne Ehnbage.

Fibre2Fashion News Desk (DP)