Slide 1: Interim Report Q1 2017
INTERIM REPORT Q1 2017 Stockmann Group | 28 April 2017
Slide 2: Q1 2017 in brief
Q1 2017 IN BRIEF • Stockmann Group – Operating result up by EUR 2.5 million – Improved operating results for Stockmann Retail and Real Estate, decline for Lindex Gross margin 51.1% (50.2%) • Lindex – Comparable revenue increased in all markets except Sweden and Norway – Operating result down in the
Slide 3: Turnaround continues with improved performance: operating result up EUR 39 million
TURNAROUND CONTINUES WITH IMPROVED PERFORMANCE: OPERATING RESULT UP EUR 39 MILLION IN THE PAST 12 MONTHS Stockmann Group, rolling 12-month adjusted operating profit (EBIT) 30 22.7 20 10 0 -10 -20 -16.7 -30 -40 -50 4/2014- 7/2014- 10/2014- 1-12 4/2015- 7/2015- 10/2015- 1-12 4/2016- 3/2015 6/2015 9/20
Slide 4: Stockmann Group, financial performance in Q1 2017
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q1 2017 • Revenue EUR 242.7 million (273.1) QUARTERLY REVENUE – Down by 2.9% in comparable businesses i.e. excluding Hobby Hall, Oulu EUR mill. department store and Lindex stores in Russia 500 400 • Gross margin 51.1% (50.2%) 300 – Up due to divestment of Ho
Slide 5: Key figures
KEY FIGURES Q1/2017 Q1/2016 1–12/2016 Equity ratio % 46.1 44.8 48.3 Gearing % 79.9 81.6 68.3 Net financial items EUR mill. -4.6 -4.3 -23.1 Result for the period EUR mill. -29.6 -31.6 -18.2 Earnings per share EUR -0.43 -0.46 -0.33 Net earnings per share, EUR -0.43 -0.31 -0.12 including discontinued o
Slide 6: Market environment and outlook for 2017
MARKET ENVIRONMENT AND OUTLOOK FOR 2017 • In Finland, economy has slowly begun to recover. GDP and retail market are expected to grow slightly in 2017, but consumers’ purchasing power is not expected to increase and purchasing behaviour is changing. • In Sweden, GDP growth estimate for 2017 remains
Slide 7: Lindex
LINDEX STOCKMANN 28.4.2017 7
Slide 8: Lindex, highlights in Q1 2017
LINDEX, HIGHLIGHTS IN Q1 2017 • Positive sales development in women’s wear thanks to higher fashion level and greater clarity between concepts, but decline in other areas • Increased sales in all markets except Sweden and Norway, which resulted in decrease in total sales and profitability • Continue
Slide 9: Lindex, financial performance in Q1 2017
LINDEX, FINANCIAL PERFORMANCE IN Q1 2017 • Revenue down 5.4% to EUR 123.2 million (130.2), or down 4.8% QUARTERLY REVENUE excluding Russian stores in 2016 EUR mill. – At comparable exchange rates down 1.5% in comparable stores 200 – Comparable sales increased in women’s wear and in all markets excep
Slide 10: International expansion
INTERNATIONAL EXPANSION • Store network on 31 March 2017 – 476 stores in 16 countries, 4 59 of which 39 franchising stores 100 – 4 stores opened and 3 closed in Q1 2017 210 10 9 • New stores & markets in 2017 8 – Over 15 new own stores in 2017 2 4 – Net increase of stores lower, due to 26 some store
Slide 11: Lindex way forward
LINDEX WAY FORWARD • Strong commercial summer and autumn campaigns to come • Actions to improve operating profit • Increased investments and competence in the digital business – Launch of Lindex mobile app – Release of new responsive web site • Continuously increased customer and sales focus STOCKMA
Slide 12: Stockmann Retail
STOCKMANN RETAIL STOCKMANN 28.4.2017 12
Slide 13: Stockmann Retail, highlights in Q1 2017
STOCKMANN RETAIL, HIGHLIGHTS IN Q1 2017 • Operating result excluding Hobby Hall improved by EUR 6.4 million – Efficiency programme generates cost savings according to plan • Continuous updates to brands in selection, service, store environment and marketing – Non-food sales in Q1 on a par with the p
Slide 14: Stockmann Retail, financial performance in Q1 2017
STOCKMANN RETAIL, FINANCIAL PERFORMANCE IN Q1 2017 • Revenue EUR 109.5 million (135.2) QUARTERLY REVENUE – Down by 2.9% in comparable businesses (excluding Hobby Hall and Oulu store) EUR mill. – Timing of Easter had a negative effect on sales in Delicatessen in Finland 250 – Revenue grew in both Tal
Slide 15: Crazy Days key facts
• Crazy Days key facts – Campaign held on 5-9 April 2017 50 000+ in Finland, Estonia and Latvia – Eight department stores and the online store hullutpaivat.com • Sales close to the 2016 level online store orders – Total sales development: -1% 3 – Finland: -1% Tallinn and Riga: +2% million – Strong g
Slide 16: Real Estate
REAL ESTATE STOCKMANN 28.4.2017 16
Slide 17: Real Estate, highlights in Q1 2017
REAL ESTATE, HIGHLIGHTS IN Q1 2017 • Increased revenue and operating profit • New partners in the department stores – Mumin Kaffe on the 5th floor in Helsinki flagship – Robert’s Coffee, flower shop and hair salon in new Tapiola store – Westerback jewelry and watch shops in Turku and Tapiola stores
Slide 18: Real Estate, financial performance in Q1 2017
REAL ESTATE, FINANCIAL PERFORMANCE IN Q1 2017 • Fair value of the properties EUR 944.7 million at 31 March 2017 QUARTERLY REVENUE (EUR 950.1 million on 1 January 2017) EUR mill. 20 • Occupancy rate 99.1% (99.1%) 15 • Net operating income from own properties EUR 12.9 million (12.1) 10 – Average month
Slide 19: Stockmann Roof, a new Helsinki downtown terrace
STOCKMANN ROOF, A NEW HELSINKI DOWNTOWN TERRACE • Location in the heart of Helsinki, on the roof of Stockmann’s flagship department store (8th floor) – a new reason to visit Stockmann for shoppers and tourists! • Own entrance from Pohjoisesplanadi street, enabling longer opening hours than for the r
Slide 20: Further information
FURTHER INFORMATION: www.stockmanngroup.com investor.relations@stockmann.com twitter: @stockmanngroupF