Tokmanni, which we cover, appears to have outperformed the market in Q3.

Tokmanni's Q3 results exceeded expectations and reinforced our confidence in the 2025 earnings growth turnaround. Increased consumer confidence was reflected in higher footfall in the Group's stores, which we believe sets the stage for a successful holiday season.

The target market for Kesko's grocery business and Tokmanni and Lindex' department store business grew by 3% in August. Food was the main contributor to trade growth, up almost 5%, while consumer goods were down 1%.

Tokmanni's Q2 result was soft in many respects, as indicated by the profit warning issued by the company in July. During the quarter, the company faced challenges in each of its markets, resulting in a decline in like-for-like sales.

Tokmanni will release its Q2 results on Friday, August 16 at around 8:00 am EEST. We lowered our forecasts following the recent profit warning. The rest of the year looks challenging for the company and the rest of the retail sector as consumer spending remains selective and the critical low price point for discount retailers is threatened by the VAT increase in Finland in September.