Strong fashion sales turnover growth in Finland during first quarter

Clothing retailers Lindex and Seppälä have recorded double-digit turnover growth this year.

Clothing sales have increased strongly in Finland during the first part of this year, with fashion store sales up by 5% and sports stores sales growing by 8%, according to Veli-Matti Kankaanpää, managing director of the Finnish textile and fashion sector association TMA. In his view sales of fashion clothes fall during economically difficult times and sales of leisure wear improve.

Swedish fashion retailer Lindex's turnover in Finland increased by 16.4% in the first quarter of this year and Seppälä's by 12.1%. Small clothing stores have improved their financial results and profitability has strengthened. According to Kankaanpää, the past decade has been a time of cheap clothes and a price correction can be expected in the near future.

The financial results of the major clothing retail companies operating in Finland remained mainly positive in 2011 but there was less growth than the year before, according to a report by Balance Consulting. Hennes & Mauritz's turnover fell by 3.4% to EUR 156.8 million and profits by 10.7%. Seppälä's turnover was down 0.8% to EUR 93.6 million and profits fell by 35.2%. Lindex's turnover increased 5.9% to EUR 70.8 million and profits were down by 47.6%. Kapp Ahl's turnover was up by 1.8% to EUR 66.1 million while profits fell by 295%. Dressmann's turnover grew by 4.5 % to EUR 56.7 million euroon and profits were down by 41%.

Source: Kauppalehti