FINLAND: Stockmann reduces full-year profit forecast
- Q3 operating profit down 17.4% to EUR15.2m
- Revenue up 9.6% to EUR461.3m
- 9M net loss of EUR14.4m against a profit of EUR41.2m
- 9M revenue up 10.8% to EUR1.4bn
Finnish retailer Stockmann expects full-year operating profit for 2011 to be lower than last year, as the company blamed the European debt crisis for reduced consumer confidence.
The comments came today (26 October) as the firm saw third-quarter operating profit fall 17.4% to EUR15.2m. For the quarter ended 30 September, revenue increased 9.6% to EUR461.3m.
For the nine-month period, operating profit dropped to EUR10.8m from EUR40.2m last time. Net loss was EUR14.4m against a EUR41.2m profit a year earlier. Revenue, meanwhile, rose 10.8% to EUR1.4bn.
Company CEO Hannu Penttilä said sales continued to grow "well" during the quarter, especially in Russia where its new store in St Petersburg "had a positive impact on Stockmann's revenue".
He said the group achieved a "reasonable operating profit in the third quarter" but that the "decisive period for full-year earnings performance is yet to come".
While the group has "positive expectations" for the final quarter of the year, the "uncertain market environment has made forecasting very challenging".
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