The retail chain Stockmann achieved a profitable result last year after many years of losses, while its subsidiary Lindex also saw a sales increase but a decrease in profit due to rising depreciation costs.
The Finnish retail chain Stockmann has made a remarkable turnaround by reporting profits for the last year, breaking a streak of losses spanning several years. The operating profit of the Stockmann division improved by 1.2 million euros from a loss of 3.9 million euros the previous year, marking the first positive result in years. Lindex's CEO, Susanne Ehnbåge, expressed her congratulations to Stockmann's team for their consistent efforts to achieve better results, highlighting the positive developments in cash flow that have improved the company's net debt situation, which has now turned positive without lease liabilities.
Despite the positive results, Lindex's board announced in December that the evaluation of strategic alternatives for Stockmann's department store business is ongoing. This implies that the company is contemplating various options, including the potential sale of Stockmann or other arrangements. The outcomes of this review are expected to be announced in a future update, leaving uncertainty about the long-term viability of Stockmann's department store operations.
The recent developments in Stockmann and Lindex indicate a significant shift in the retail landscape in Finland, which has been grappling with challenges amidst changing consumer habits and increased competition. The strategic evaluation is critical as it may dictate the future direction of Stockmann and whether it will continue as part of the Lindex brand or venture into new ownership arrangements, potentially reshaping the retail sector in Finland further.
