Stockmann cautiously upbeat as Q2 performance accelerates
Finnish retail giant Stockmann Group released its Q2 and half-year results on Friday and reported a dramatic improvement all round. Consolidated revenue rose over 20% in the last three months, while the gross margin also jumped and adjusted operating profits made a big leap.
Looking first at Q2, consolidated revenue was up 21.4% at comparable currency rates to €228 million, and the gross margin rose to 60.5% from 54.1% in the April to June period. Operating profit reached €26.3 million after a loss of €0.4 million a year ago and the adjusted operating result was €26.7 million, up from the prior year’s €0.8 million.
It's clear from looking at the figures for the first six months of the year as a whole that the second quarter saw a noticeable acceleration and improvement in both sales and profits.
In the first half, consolidated revenue rose only 6.5% at comparable currency rates to €383.7 million and the gross margin was up to only 58.8% from 54.2%. The operating result was a loss of €1.4 million, but so much better than the loss of €28.3 million a year earlier. The adjusted operating result was a profit of €5.6 million, again, much better than the €25.9 million loss last year.
For the full year, Stockmann, which owns the eponymous department store operation as well as the Lindex retail chain, “expects a clear increase to the group revenue, and the adjusted operating result to be clearly positive assuming that no major Covid-19 restrictions are imposed”.
CEO Jari Latvanen said both divisions improved their results and the group’s cash increased during Q2 to reach €155 million at the end of June.
But the chief executive added that uncertainty in the global economy is expected to persist throughout 2021, and the pandemic will continue to have a “significant impact on the economy across the world, until the coronavirus situation is under better control. The retail market is expected to remain challenging due to changes in consumer behaviour and confidence, which are also affected by the coronavirus situation”.
Latvanen also said the Stockmann division will “continue to execute its restructuring programme and Lindex [will] drive efficiencies and explore new growth opportunities”.
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