FINLAND: Stockmann Group full-year profit falls 9.7%
Finnish fashion and department store retailer Stockmann Group has reported a 9.7% decline in full-year profit amid challenging trading conditions.
Profit stood at EUR48.4m (US$7.5m) for the year ending December, down 9.7% from EUR53.6m in the same period of the prior year. Revenue slipped 3.7% to EUR2.04bn from EUR2.11bn last year.
The company attributed the declines to challenging retail conditions in Finland, as well as the considerable weakening of the Russian rouble.
During the fourth quarter, profit fell 23.5% to EUR36.5m from EUR47.7m, while revenue dropped 5.6% to EUR607.8m against EUR643.8m the year before.
CEO Hannu Penttilä said revenue growth is not expected to take place until the second half of the year, while operating profit is set to be higher than last year.
"A weak market environment will continue in 2014 and low purchasing power must be taken into account, particularly in Finland," Penttilä warned.
"The outlook for Russia is very uncertain. The market environment in Sweden, Norway and the Baltic countries is expected to be stable. We are carrying out structural changes in order to adapt the cost structure to slow growth and to improve our performance."
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