What: Stockmann has reported its results for Q3 and the nine months to the end of September with the company hailing its revenue growth and the Stockmann division reaching break-even.

Why it is important: Despite these results, margins and profits fell but the company kept its guidance unchanged, still expecting an increase in revenue and a better operating result compared to the previous year. This is based on the assumption that there’s no major change in consumer spending during the latter part of the year, as well as assuming that higher inflation and supply chain challenges will continue.

In the latest quarter, revenue rose from €237.8 million to €244 million, which was an increase of 4.2% in local currencies. That said, the gross margin fell to 56.8% from 59.5% and adjusted operating profits dropped to €22 million from €32.9 million. The overall operating result was €6 million, down from €32.7 million a year ago, and net profit fell to €0.6 million from €22.9 million.

In the nine months, revenue rose to €709.1 million, an increase of 15.4% in local currencies. The gross margin was down in this period as well, although less sharply with a drop to 58.1% from 59.1%. Adjusted operating profit rose to €53.7 million from €38.6 million and reported operating profit was up to €130.3 million from €31.5 million. Net profit rose to €84.1 million from €12.6 million.

Stockmann revenue rises but profit is dented in Q3