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Stockmann shows improvement in Q4 2019

The retail firm's board is still not planning to pay dividends to shareholders for 2019, however.

nainen taluttaa polkupyörää Aleksanterinkadulla Stockmannin edessä
Image: Markku Pitkänen / Yle
  • Yle News

Struggling retailer Stockmann Group announced on Thursday that following a strategy renewal, the company saw improvements during last year's fourth quarter.

The firm's adjusted operating result for Q4 was 28 million euros, according to the company, compared to 23.5 during the same period in 2018.

However at the same time, Stockmann sales fell to 285.7 million euros last quarter, compared to 304.5 million euros in Q4 the previous year.

During all of 2019, the company's sales reached a total of 960 million euros, and its adjusted operating profit during that time was 29 million euros. The company said it expects profits to improve this year.

Stockmann CEO Jari Latvanen said the improvements seen were partially due to changes in strategy made last year.

The company announced last month that its adjusted operating profit for 2019 was better than previously estimated, saying the improved outlook was due to good business at its department stores as well as at its Lindex fashion chain.

"We renewed our strategy and launched a new clarified vision, mission and values towards the end of the year. Thefirst effects of our strategic actions and ongoing transformation are emerging in our financial results," Latvanen said in a company statement.

"The positive operating result was achieved through the rejuvenation program and ongoing savings and the improved performance of both Lindex and Stockmann. Due to seasonality, most of the year's earnings were achieved in the fourth quarter," he said.