contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  tags {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls: translations {
    __typename
    pageUrl
    lang
  }
  imgUrl
  description
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    summary
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      name
      id
      viewerIsFollowing
      pageUrl
      defaultInstrument {
        isin
        id
        marketOpen
        marketClose
        marketplace {
          region
        }
        returns {
          total
        }
      }
    }
    tags {
      viewerIsFollowing
      id
      name
      pageUrl
    }
    createdAt
    ... on Video {
      liveTime
    }
    ... on Webcast {
      liveTime
    }
    slug
    ... on CompanyReport {
      reportUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    name
    pageUrl
    defaultInstrument {
      priceData {
        tradeCurrency
      }
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
    id
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      name
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


stockmann-swedish-clothing-market-grew-4-july

__typename

title

isPremium

lang

htmlBody

summary

companies

createdAt

publishers

authors

reactionGroups

pageUrl

translations

imgUrl

description

Analyst

Rauli Juva

Lindex Group operates in the retail sector. The Group manages a number of stores in major shopping centres and large commercial premises located throughout the Nordic market. The Group is a retailer of several brands and the range consists of clothing, shoes and related accessories. The company has its headquarters in Helsinki.

In my own portfolio, units of at least the following companies have been up for sale: KH-group - Indoor, Wärtsilä - Energy Storage, Tieto - Tech Services. What they have in common is that if they have sold recently, they have had to sell at an undervalue. The share prices of all of them have reacted negatively in the short term to both decisions, whether they sold or decided not to. In Stockmann’s case, selling at an undervalue would have been a certainty. So, regarding the giving away of owners’ money just for the short-sighted returns sought by some investors—it is good that they are now selling in disappointment and exiting as shareholders, allowing the company to continue its long-term development work. Stockmann is not in such a weak position that it would be forced to make a bad decision for the owners. Revenue and the online store’s 1.4 million customers provide an opportunity to increase value significantly if the right moves are made. While it has been up for sale, radical changes could not be made because no one buys a loss-making retail chain in the middle of major changes; it is too risky. The situation is that if the retail chain’s value is very low or negative, even a moderate increase in value brings significant leverage to the value of the investors’ holdings. The separation is likely timed precisely for the moment it turns profitable, as there was a risk that the market would not appreciate it under the current group structure; as a separate entity, its value can be made reliably visible. Could this Christmas’s sales be enough, now that consumers have finally dared to open their wallets—which have been kept tightly shut lately—for the holiday season?

Things looked good at the Stockmann in Jumbo, as the checkout lines were really long. In my opinion, the speculation by a few users here about the weakness of Christmas sales is not fully justified.

I can’t judge whether the rent level of the city center department store is normal or high, but I believe it has been noted here before that the city center store is profitable. And while all individual department stores may be profitable on their own, other costs such as administration and division overheads drag the overall result into the red. Department stores and Stockmann have the potential to run a profitable business from a gross margin (44%) perspective. Personally, I feel that a clear challenge in the department store business is the high personnel costs relative to revenue. Department stores require a certain minimum number of sales staff, as they are a central part of the customer experience. This is where department stores differ from many other retail concepts. Last year, Susanne stated in an interview with Arvopaperi magazine that “At Stockmann, our medium-term goal is a five percent operating profit margin, and that is what we are aiming for. But of course, it’s no easy task.” Of course, it would be nice if rents could be lowered, but I suppose that’s just utopian wishful thinking. My own view is that for Stockmann, the savings have already been achieved, and now the focus should be on increasing revenue. It would be interesting to consider how much more revenue Stockmann would need, and from where and how it would come.

I think that from Keva’s perspective, it’s really important to keep Stockmann as a tenant in that property. It’s hard to imagine any other party wanting it, and that wouldn’t be good for Keva.

Quote below from AI regarding the “sale and leaseback” of the Stokka property. I wonder if that “rent level” would be renegotiable. What then is the share of other rental spaces used by Stokka? I don’t believe the solution will be found in the rents. Stokka needs to be made profitable one way or another. It has been continuously moving in the right direction. Spinning off Stokka won’t improve profitability. So, resources must still be put into improving profitability. It will be interesting to hear what Director Susanne says about this in connection with Q4. Susanne Q3 Quote The Stockmann division’s revenue was EUR 62.4 (62.9) million and the adjusted operating result improved to EUR -2.6 (-4.5) million. I am very pleased with the Stockmann division’s third-quarter earnings improvement, which was the sixth consecutive improvement. The Stockmann division’s rolling 12-month adjusted operating result, EUR 0.9 million, was also the division’s first positive rolling 12-month result in many years. The team’s hard work to advance Stockmann’s strategic goals yielded results, as operational efficiency and cost-efficiency measures improved the division’s profitability. AI: Briefly: Stockmann sold its Helsinki city center department store property (Aleksanterinkatu) to the pension insurer Keva in 2022 and continues its operations in the property under a long-term leaseback agreement. Roschier +1  Rent level information The actual rent level (internal euro-denominated rent) has not been publicly disclosed in press releases or the media – the exact rent level of the agreement between Stockmann and Keva in euros per square meter / per year or as total rent has not been publicly released. However, the estimated net yield of approximately 4.2% associated with the transaction provides an indication of rent levels based on the market: net yield means that annual rental income, net of expenses, relative to the purchase price (≈ €400 M) is approximately 4.2%. Helsinki Times For example, 4.2% * €400 M ≈ €16.8 M in annual net rental yield. This is not the direct rent amount, but it serves as an indicative calculation of the property’s expected return under a market-based agreement.  In practice, the detailed rent amount (€/m²) and all contract terms are usually trade secrets and are only published in the parties’ internal reports or IFRS financial statements, not widely in the media or company announcements. Stockmann has not separately disclosed the euro amount of the rent to the public.

If the problem is specifically the long and expensive lease of the city center department store combined with chronically negative cash flow, could a new restructuring of the Stocka division be a solution, at least in principle? I know it sounds really foolish with the previous restructuring having just ended, but Stocka should be separated into its own subsidiary and a corporate restructuring process initiated for it, because in a corporate restructuring, a company has the right to terminate and renegotiate its leases, among other things. The previous restructuring solved some of the problems but not all of them.

Was Stockmann forced, in the context of the real estate sale, to enter into a highly unfavorable sale-and-leaseback agreement that cannot be covered even by sub-leasing, even if the entire department store were leased out in parts to third parties + administrative costs on top? I’ll share a similar story from the recession years on a smaller scale. A certain Real Estate Ltd was in a crisis situation after an attic construction project. A large and prestigious top-floor office space owned by the company had to be sold, but a buyer was hard to find. Eventually, Pension Fund X made an offer and at the same time demanded that the real estate company find tenants for 5 years and guarantee the buyer a 10% rental yield from the date of purchase. The company divided the space and eventually found tenants – the rental income only covered half of the pension fund’s demand. However, by then the economic cycles had time to change, and once they got out of the “lease captivity” – the real estate company was in the clear and, as far as I know, is doing well today. Returning to Stockmann’s department store business – based on the release, one could conclude that Lindex is now in a similar situation. Is the department store’s lease agreement so disadvantageous that bringing the entire business to a profitable level is a major obstacle to selling the business as long as the current lease is in effect? And the future? Stockmann’s brand is based precisely on this property – if the business does not continue in this property, what is left? Liquidating the entire company or turning it into an online store (of which there are plenty)? The landlord will surely find a tenant for other uses, as the property is located in a prime spot in downtown Helsinki. This may be a much more difficult situation than I had previously imagined.

Lindex Group

Comparison figures to 2019 levels are no longer published, but the comparison figure for July 2022 (vs. 2019) was 3%. Svensk Handel, which publishes the statistics, still considers the volume trend to be declining and thus weak, but the development was quite expected compared to our expectations. During January-June, the market grew by 2%.

<img src="https://content.inderes.se/assets/6b2cccae-9913-41fd-b36f-5ce1a90ba738" alt=""> Source: Svensk Handel *Inderes’ estimate Translation: Original comment published in Finnish on 8/14/2023 at 6:00 am EEST. July figures for the Swedish clothing market were published last Friday. Comparison figures to 2019 levels are no longer published, but the comparison figure for July 2022 (vs. 2019) was 3%. Svensk Handel, which publishes the statistics, still considers the volume trend to be declining and thus weak, but the development was quite expected compared to our expectations. During January-June, the market grew by 2%. Sweden accounts for more than half of Lindex’s sales Sweden is Lindex's largest market and generates more than half of Lindex's sales. Our estimate for Lindex's Q3'23 revenue expects a 1% decline, still depressed by the much weaker SEK and NOK, which together account for around 70% of Lindex's sales. In our estimates, the negative impact of exchange rates is around 6% and therefore our growth expectation in local currencies is around 5%. Against this backdrop, July is relatively in line with our expectations. However, July is a traditional clearance sales month, so in addition to sales performance, what matters is how much revenue has been generated by discounts. The market developments in July do not give rise to any need to change our estimates.

Stockmann: Swedish clothing market grew by 4% in July

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