Feb 13, 2015
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Stockmann to lose money again in 2015, plans cost cuts

Feb 13, 2015

HELSINKI, Finland - Finnish fashion and department store group Stockmann reported sharply lower fourth-quarter sales and earnings on Friday and said it will cut costs and close three loss-making department stores in the Moscow region and one in Finland.

The Stockmann department store in Helsinki city centre | Stockmann/flickr

On the Helsinki Bourse, Stockman's shares traded 3.1 percent lower by 0907 GMT.

The company expects sales to continue to fall in 2015, while its operating earnings will remain in the red, although the loss will be smaller than the 42.9 million euro deficit recorded in 2014, it said in its earnings report.

Stockmann's fourth-quarter revenue fell to 548.5 million euros ($627.20 million) from 607.8 million a year ago, while adjusted operating profit totalled 12.2 million euros versus 48.3 million in the same quarter of 2013.

The company also said January sales fell by 5.7 percent.

The company set a target for annual cost saving of 50 million euros, and that the four department stores it plans to cut will be shut down by the end of 2016.

The company also said it will pay no dividend in 2014.

€1 = $1.14/£0.74

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