Stockmann has downgraded its growth expectations for 2017 after the company's Lindex brand did worse than expected in the opening months of the year.
The firm now says it expects results to be similar to or slightly worse than they were in 2016. The company had previously forecast an improvement in results compared to last year. In 2016 the company made a profit of some 36 million euros.
Last year Lindex had posted profits of 55 million euros, up some 10 million euros on the previous year. The figures for the first half of this year are down on that, and although they improved in September the company has downgraded expectations for fourth quarter results.
The firm will also write-down the value of Lindex in its accounts this year to the tune of 150 million euros, so that the value of Lindex aligns more closely with what it might fetch if sold to a rival.
Stockman has in recent years shifted strategy to increase revenues from renting out space in its stores, selling the firm's grocery arm to S-Group and contracting the company's loss-making department store operations.