Finland's Stockmann reports Q1 loss in line with expectations

Finnish fashion and department store chain Stockmann on Thursday reported a first-quarter operating loss, citing seasonal reasons, but said it was on track for a full-year profit after pulling out of recession-hit Russian market last year.

It also said it will sell its loss-making mail order business Hobby Hall to Finnish SGN Group, adding that the price would not have a significant effect on its result.

First-quarter adjusted operating loss came in at 30 million euros ($34 million), compared to a loss of 50 million euros a year earlier and roughly in line with analysts' average forecast of a loss of 31 million euros in a Reuters poll.

"The strategic actions are expected to improve our operating result so that it will be slightly positive in 2016," acting CEO Lauri Veijalainen said in a statement.

Stockmann earlier this month announced a surprise departure of its chief executive Per Thelin following disagreements between the company's biggest owners.

$1 = 0.8823 euros