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Sandra Halliday Published
April 24, 2025
Under-pressure Scandinavian retail giant Stockmann Group issued a profit warning on Wednesday on the back of “the weakened outlook” for its Stockmann Retail operation that should last for the rest of the year.
The company, which owns the eponymous department stores operation, said that its 2025 adjusted operating profit should match that of the previous year at around €10.4 million, which is lower than it had previously expected. It hadn’t given a specific figure previously but had said in February that 2025 profit should “improve compared to 2025.”
Stockmann Retail is expected to stay weak “due to the on-going transformation process,” we’re told.
But the company had some fairly good news too as it said its specialist fashion retailer Lindex “is estimated to continue its steady performance.”
The company’s Stockmann unit has been a problem for some time and its performance deteriorated in Q4. Its domestic Finnish market has been weak with physical retail a particular problem. While the firm’s online ops have continued to grow steadily, Stockmann expects physical stores to remain challenged.
All of this is happening at a time of management change for the firm. Last month, its CEO Lauri Veijalainen resigned for a role outside of the company. Chairman Lauri Ratia stepped up as executive chairman for the time being, with management team member Tove Westermarck named as Stockmann Retail’s COO.