Stockmann Oyj Abp: Stockmann Group publishes updated strategies and new financial targets for Lindex and Stockmann divisions
STOCKMANN plc, Other information disclosed according to the rules of the Exchange, 13.11.2023 at 13:00 EET
Stockmann Group publishes updated strategies and new financial targets for Lindex and Stockmann divisions
Stockmann Group publishes updated strategies and new financial targets for the Group's two divisions, Lindex and Stockmann. On 16 November 2023, the company will hold a Capital Markets Day where it will present the strategies and targets in more detail.
Lindex division
The Lindex division's strategy builds on Lindex's purpose of empowering and inspiring women everywhere, and targets to reach sustainable and profitable growth. The division's three strategic must-win areas are:- Accelerate growth: Lindex aims to grow in both existing and new markets and channels with a strong, differentiated offering.
- Transform into a sustainable business: Lindex continues its sustainability transformation, which offers many business opportunities such as growing with new circular business models.
- Decouple cost from growth: Lindex will continue to improve efficiency and enable growth by digitalization within stores, logistics, sourcing and overall processes.
- 3-5% annual local currency revenue growth in the mid-term and reaching an annual revenue of SEK 10 billion by 2030
- 30% digital share of revenue in the mid-term
- 15% adjusted operating margin in the long-term
Stockmann division
The Stockmann division's customer-centric strategy builds on Stockmann's purpose of being a marketplace for a good life, and targets to reach profitable and sustainable growth. The division's three strategic must-win areas are:- Elevate offering: The Stockmann division will further strengthen its position in premium and luxury, introducing new brands, complementary categories and services as well as enhancing the sustainability of its offering. The Helsinki flagship store will have a central role in this.
- Grow and leverage the loyal customer base: Stockmann will continue to develop its loyalty program to further activate its 1.4 million loyalty customers and further leverage data and personalization capabilities.
- Ensure a seamless omnichannel experience: Stockmann will ensure a seamless omnichannel experience through department store development, e-commerce acceleration as well as investments in digitalization and automation.
- Revenue growth in line with market1 growth in the mid-term
- Reaching a positive free cash flow in the mid-term
- 5% adjusted operating margin in the mid-term
[1]Stockmann addressable market in Finland, Latvia and Estonia, comprising of fashion, beauty and home categories
Stockmann Group has drawn up a science-based climate plan and target for the entire Group and its value chain. Compared to 2022, the Group aims to reduce the climate emissions from its own operations and its value chain by 42 per cent. Stockmann signed the Science Based Targets initiative (SBTi) in autumn 2021 and submitted its climate target to SBTi in October 2023. The Group expects SBTi to approve its climate target during 2024.
The strategic assessment announced on 25 September 2023 of refocusing the Stockmann Group's business on Lindex and investigation of strategic alternatives for the Stockmann department stores business continues as previously communicated and is expected to be finalized during 2024.
Capital Markets Day
Stockmann Group will hold its Capital Markets Day in Helsinki on 16 November 2023. The Capital Markets Day webcast can be followed online at https://stockmann.videosync.fi/cmd-2023/register from 1 p.m. EET onwards. A recording of the CMD will be available after the event on Stockmann's website at www.stockmanngroup.com.
The CMD presentation materials will be available at www.stockmanngroup.com on Thursday 16 November at around 1 p.m. EET.
STOCKMANN plc
Susanne Ehnbåge
CEO
Further information:
Investor Relations, Stockmann Group
investor.relations@stockmann.com,tel. +358 44 222 5552
Distribution:
Nasdaq Helsinki
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