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."
- VF Corp confirms interest in Africa sourcing
- Will Amazon take over the US apparel market?
- G-Star RAW pushes the boundaries of denim
- US groups seek workable apparel provisions in TPP
- Pakistan textile mills fear rash of closures
- VF Corp ups guidance on "strong" Q2
- Metallised thread for "revolutionary" RFID tag
- Under Armour secures Germany and Austria deals
- Manufacturing in China falls to 15-month low
- Millennials "changing the game" for hosiery
- Ethiopia – the emerging textile and clothing industry
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Global market review of workwear - forecasts to 2019
- Management briefing: Factory safety and auditing: The key challenges
- Global market review of denim and jeanswear – forecasts to 2020