Finnish department store and fashion chain group Stockmann will miss its profit guidance for 2017 due to poor fourth-quarter sales, the company warned on Thursday.

Stockmann said full-year adjusted core operating profit in continuing operations would be about 12 million euros, 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, reported Reuters.

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. The retailer has struggled in the past couple of years as economy slowed down in Finland and Russia. Consumer shift to online shopping has also taken a toll on the retailer.

At the beginning of the year the department store operator announced its plans to sell a well-known building in Helsinki, which has an estimated book value of around 100 million euros. A possible sale of the “Book House” in the heart of Helsinki, together with a long-planned property sale in St Petersburg, would help the indebted company which posted a core quarterly loss for the third quarter.

On the back of the news, the company’s stock fell as much as 4 percent Thursday. Shares in the company, which fell about 40 percent in 2017.


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