Lindex owner Stockmann swings to half-year loss following store closures

Finnish fashion group Stockmann has reported a half-year loss following store closures tied to the Covid-19 pandemic.

The company reported a loss of 3.1 million euros, compared to a profit of 10.2 million euros for the first half of last year. Its revenue for the period was 182.7 million euros, down 23.2 percent from last year. However, the company’s sales were “better than expected” in March–June, especially across home and beauty categories.

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 that “swift adjustment measures” across both Lindex and Stockmann, on top of last year’s savings programme, have managed to reduce the group’s fixed costs by around 35 million euros compared to last year.

Latvanen also said the group continues to experience “strong” growth. In the first half of the year, Stockmann division delivered more online store orders than throughout the whole of last year, and it launched around 50 new brands. In the second quarter, Lindex’s online store was up 102 percent.

“We will continue to develop our operations with a strong focus on the customer, upgrade our digital service channels in both divisions, continue to renew the Stockmann department stores and to bring out new brands for our customers on a regular basis,” Latvanen said.

Photo credit: Lindex, Facebook