Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Q1 2018 Earnings Presentation
21 slides from Lindex Group Plc Class B's earnings presentation, Apr 27, 2018
Slide 1: Interim Report Q1 2018
INTERIM REPORT Q1 2018 Stockmann Group | 27 April 2018
Slide 2: Q1 2018 in Brief
Q1 2018 IN BRIEF • Stockmann Group Group’s gross margin – Adjusted operating result on a par with the previous year 55.1% – Inventories on a healthy level and reduced clearance sales, thus improved gross margin – Profitability improvement programme proceeds with full speed in Lindex; efficiency meas
Slide 3: Stockmann Group, Financial Performance in Q1 2018
STOCKMANN GROUP, FINANCIAL PERFORMANCE* IN Q1 2018 • Revenue down by 6.7%, to EUR 202.4 million (216.9**) QUARTERLY REVENUE – Down in Lindex and Stockmann Retail, up in Real Estate EUR mill. 400 • Gross margin 55.1% (53.3%) 300 – Up in both in Lindex and Stockmann Retail, due to decreased markdowns
Slide 4: Key Figures
KEY FIGURES Q1/2018 Q1/2017 1-12/2017 Equity ratio % 41.6 46.1 43.0 Net gearing % 94.6 79.9 83.8 Net financial items* EUR mill. -8.7 -4.6 -31.1** Result for the period* EUR mill. -30.9 -26.9 -198.1*** Earnings per share* EUR -0.45 -0.39 -2.82 Net earnings per share, EUR -0.45 -0.43 -2.98 including d
Slide 5: Market Environment and Outlook for 2018
MARKET ENVIRONMENT AND OUTLOOK FOR 2018 • Economic situations in Finland and Sweden are expected to improve with increasing GDP and customer confidence, but fashion market is not estimated to develop as good, due to changing purchasing behaviour. • Retail outlook in the Baltic countries is expected
Slide 6: Lindex
LINDEX
Slide 7: Lindex, Highlights in Q1 2018
LINDEX, HIGHLIGHTS IN Q1 2018 • Increased sales outside of the Nordic countries • Continued strong sales development in the online store • Progress with the Profitability improvement program • Store portfolio restructure initiated – 6 stores closed during Q1 – Finland’s first Lindex Lingerie store o
Slide 8: Lindex, Financial Performance in Q1 2018
LINDEX, FINANCIAL PERFORMANCE IN Q1 2018 • Revenue down 6.8% to EUR 114.8 million (123.2) QUARTERLY REVENUE – Same-store sales at comparable exchange rates down by 5.3% EUR mill. – Comparable store sales decreased in the Nordic countries and Lithuania 200 • Gross margin 57.7% (57.2%) 150 – Up due to
Slide 9: Lindex Store Network
LINDEX STORE NETWORK • Store network on 31 March 2018 7 61 – 486 stores in 18 countries, 98 of which 45 franchising stores – 2 stores opened and 6 closed 207 10 in Q1 2018 10 9 • Stores & markets in 2018 2 3 – Focus on optimising store locations 29 – Unprofitable stores will either move 12 to new lo
Slide 10: Lindex Way Forward
LINDEX WAY FORWARD • Profitability improvement program proceeding with full speed – Aim to reduce costs and increase the gross margin – Implementing the reorganised organisation in the headquarter – Strong focus on sales and profit improvement – New sales programme in all countries to improve custom
Slide 11: Stockmann Retail
STOCKMANN RETAIL
Slide 12: Stockmann Retail, Highlights in Q1 2018
STOCKMANN RETAIL, HIGHLIGHTS IN Q1 2018 • Improvement in gross margin due to less discounting – Compensated most of revenue decline • Bold Stockwomann campaign – Campaign started in all department stores in March • Actions for Chinese tourists – Alipay mobile payment into use in all department store
Slide 13: Stockmann Retail, Financial Performance in Q1 2018
STOCKMANN RETAIL, FINANCIAL PERFORMANCE* IN Q1 2018 • Revenue EUR 76.3 million (83.7) QUARTERLY REVENUE – Revenue in comparable stores down by 6.9% EUR mill. – Significantly smaller clearance sales than in 2017 200 • Gross margin 44.7% (42.0) 150 – Up due to reduced clearance sales and less price-dr
Slide 14: Crazy Days key facts
Hullutpaivat.com is Finland’s best digital store (Grand One 2018) • Crazy Days key facts Total sales: +4% – Campaign held on 11–15 April 2018 in Finland, Estonia and Latvia – Eight department stores and the online store hullutpaivat.com • Campaign sales – Finland: +4% 2 million – Tallinn and Riga: +
Slide 15: Real Estate
REAL ESTATE
Slide 16: Real Estate, Highlights in Q1 2018
REAL ESTATE, HIGHLIGHTS IN Q1 2018 • Increased revenue and operating profit – Continued stable performance • Continuosly refurbishing the department stores – Enlarged summer roof terraces to Helsinki and Tallinn – New attractive tenants to all department stores • Investigations of possible property
Slide 17: Real Estate, Financial Performance in Q1 2018
REAL ESTATE, FINANCIAL PERFORMANCE IN Q1 2018 • Occupancy rate of own properties 99.5% (99.1%) QUARTERLY REVENUE • Net operating income from own properties EUR 13.2 million (12.9) EUR mill. 20 – Average monthly rent EUR 38.60 per sqm (37.76) 15 – Net rental yield in January–March 5.4% (5.5) 10 • Rev
Slide 18: Real Estate, Stockmann-Owned Properties
REAL ESTATE, STOCKMANN-OWNED PROPERTIES Key figures Fair value of properties 31.3.2018 1.1.2018, EUR million Gross leasable area (GLA) 142 000 sqm, of which 42% in Finland Helsinki department store Book House, Helsinki 973.0 (1.1.2017: 950.1) Occupancy rate Occupancy rate 99.8 Occupancy rate 100.0 9
Slide 19: Upcoming Renewals in the Helsinki Department Store
UPCOMING RENEWALS IN THE HELSINKI DEPARTMENT STORE MyHelsinki tourist information will Svenskt Tenn will open a pop-up Two new restaurants opened in April: be opened on the ground floor in May store on the fourth floor in May Hanko Sushi and Ooh La Laa An enlargment of the terrace New Pupu salad res
Slide 20: Q&A
Q&A STOCKMANN 27.4.2018 20
Slide 21: Further Information
FURTHER INFORMATION STOCKMANNGROUP.COM INVESTOR.RELATIONS@STOCKMANN.COM