January 11, 2018 / 3:16 PM / a year ago

UPDATE 1-Finnish retailer Stockmann to miss 2017 profit guidance

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HELSINKI, Jan 11 (Reuters) - Finnish deparment store and fashion chain group Stockmann will fall short of its profit guidance for 2017 after weak fourth-quarter sales, the company warned on Thursday.

The retailer has struggled in recent years amid slowdowns in Finland and Russia and a consumer shift to online shopping, prompting a shake-up including the disposal of one of its fashion chains and withdrawal from Russian retail businesses.

Stockmann said full-year adjusted core operating profit in continuing operations would be about 12 million euros ($14 million), down from 31 million euros in 2016.

The company had previously estimated the profit to be flat or slightly smaller compared to 2016.

“An ugly profit warning from Stockmann ... This performance raises concerns over their turnaround,” Research firm Inderes said on its Twitter account.

Stockmann cut its full-year outlook in September and followed up by posting an adjusted operating loss for the third quarter, hit by weak sales at its Lindex fashion chain.

Shares in the company fell as much as 4 percent after the announcement. ($1 = 0.8309 euros) (Reporting by Tuomas Forsell; Editing by David Goodman)

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