Bloomberg News

Stockmann Drops Most in Month on Sell Rating: Helsinki Mover

March 15, 2013

Stockmann Oyj (STCBV) fell the most in a month in Helsinki trading after Nordea Bank AB recommended selling the shares because weak sales may lead to “disappointing” first-quarter earnings.

The Finnish department-store owner’s shares fell as much as 2.9 percent to 13.60 euros, the most since Feb. 14, as of 11:47 a.m. in the Finnish capital. The trading volume was about half of the three-month daily average.

“We believe first-quarter sales will be down 3 percent in the quarter,” Rauli Juva, an analyst at Nordea in Helsinki, said in a note. “We expect another disappointment” in earnings with “a lower share price and estimates ahead of the report.”

The company’s sales declined 3.8 percent last month to 131.2 million euros ($171.1 million). Stockmann also owns clothing stores in Finland, Russia and the Baltic countries.

“Worryingly, growth in Russian department stores, Stockmann’s best growth driver, also stalled in February,” Juva said.

Nordea recommended clients sell the stock instead of holding it. The bank estimated the price will fall to 13 euros in 12 months, compared with a prior estimate of an increase to 15 euros. Stockmann is scheduled to report earnings on April 26.

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus