Stockmann Group, comprising Stockmann Department Stores and Lindex fashion stores, said revenue fell 6.8% currency-neutral to €207.6mn in the July to September quarter. The firm’s gross margin rose to 57.4% from 56.4%. And it made an operating profit of €11.7mn, better than €2.1mn a year ago. For the nine months to September, consolidated revenue fell 16.1% to €558.7mn, with the margin dropping to 55.3% from 56.2% and an operating loss of €21.9mn after a €9.1mn loss in the prior year. The fourth quarter is associated with greater uncertainty than normal due to the coronavirus situation. Despite the decline in revenue, the group’s operating profit improved, and cash amounted to €132mn.
The company has focused heavily on its digital operations this year and said that during the latest quarter, Lindex continued its digital expansion and launched on Zalando. And on the product front, it saw the launch of the new underwear brand called Closely in which Lindex has been a partner and an investor since the project started two years ago. Additionally, as part of efforts to explore new business models and ways of prolonging the lifetime of garments, Lindex is testing second-hand sales of kids’ outerwear in some selected stores. The Stockmann division continued its revamps of several department stores during the third quarter and said its premium position was further strengthened by adding several designer brands. Additionally, a new natural cosmetics department in the Helsinki flagship was opened. The Stockmann division also launched two new collections for its own brands.