Finnish fashion group Stockmann has reported improved trading in the third quarter amid the company’s ongoing cost-cutting strategy.
For the three months to 30 September, the group reported an operating profit of 11.7 million euros compared to a profit of 2.1 million euros a year earlier.
Consolidated revenue at the company fell 6.8 percent to 207.6 million euros in comparable currency rates but gross margin improved to 57.4 percent from 56.4 percent the previous year.
The group, which owns Swedish fashion chain Lindex, filed for corporate restructuring in April after experiencing a “significant” impact from the Covid-19 pandemic.
CEO Jari Latvanen said Friday she was optimistic about the company’s improved trading. “Stockmann Group showed strong performance in both Lindex and Stockmann divisions as a result of enhanced sales activities as well as implemented cost efficiency measures,” she said.
“Under the current exceptional circumstances in the operating environment, Stockmann Group performed well during the period. Despite the decline in revenue the Stockmann Group’s operating profit improved and was 11.7 million euros and the cash amounted to 132 million euros.”
But the group also warned of more uncertainty to come linked to the Covid-19 pandemic. “The fourth quarter is associated with greater uncertainty than normal due to the coronavirus situation. The revenue for the year 2020 will be on a lower level than in the previous year and the operating result will be loss-making,” the company said.
Photo credit: Lindex, Facebook