Three things to highlight from Tokmanni’s Q4/2022
The Finnish general merchandise retailer Tokmanni reported a slight +1,5% growth for its last quarter of 2022. The like-for-like (LfL) growth for Tokmanni dipped to negative with -1%. In fact, over the last five quarters the LfL growth has remained negative four times. The year 2022 as a whole saw a slightly higher growth with +2,3%.
Despite the lackluster growth, Tokmanni managed to perform relatively well when compared to the overall non-food retail market in Finland. Here are three points to note from Tokmanni’s last quarter and the full year 2022.
Like many non-food retailers, Tokmanni has been struggling with growing inventories. During 2022 the inventory values increased significantly faster than the revenues. For Q4 Tokmanni managed to restrict the growth of inventories from double-digit growht in previous quarters to 6,7%.
The clearing of the inventories lead to a decline in margins and profitability. Gross margins for Q4/2022 dropped by 1,9%-points. However, once the inventories are more streamlined it should help Tokmanni move faster to future growth.
Tokmanni has been performing better than the overall non-food market, which declined by -1,1%. The difficulty of the market can be seen when Tokmanni is compared to it’s closest peers in Finland: Motonet, Verkkokauppa.com & Puuilo.
Find more about Tokmanni from our archives:
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