Lindex Group's second-quarter result was challenged by tough market, full-year guidance maintained
LINDEX GROUP plc, Half year financial report 18.7.2025 at 8.30 EEST
Lindex Group's Half-year Financial Report 1 January-30 June 2025
Lindex Group's second-quarter result was challenged by tough market, full-year guidance maintained
April-June 2025:
- Lindex Group commenced the process to end the corporate restructuring programme and expects the restructuring to end during the third quarter of 2025.
- Lindex Group's revenue increased by 0.9% to EUR 253.9 (251.6) million. The revenue increased by 0.2% in local currencies.
- The Lindex division's revenue was EUR 172.3 (169.7) million. The revenue increased by 1.5%, and by 0.4% in local currencies.
- The Stockmann division's revenue, EUR 81.7 (81.9) million, was at the previous year's level. - The Group's gross margin decreased to 58.0% (60.0) mainly due to increased promotional activities in response to the price sensitive market environment.
- The Group's adjusted operating result decreased to EUR 22.2 (29.5) million.
- The Lindex division's adjusted operating result decreased to EUR 22.8 (30.8) million due to a decrease in gross margin.
- The Stockmann division's adjusted operating result improved to EUR 0.2 (-0.6) million thanks to successful cost efficiency measures. - Operating result increased to EUR 25.5 (20.3) million.
- Net result increased to EUR 13.1 (7.0) million.
- Basic and diluted earnings per share were EUR 0.08 (0.04).
January-June 2025:
- Lindex Group's revenue was EUR 439.9 (444.4) million. The revenue decreased by 1.0%, and in local currencies by 1.2%.
- The Lindex division's revenue was EUR 298.6 (300.4) million. In local currencies, the revenue decreased by 0.8%.
- The Stockmann division's revenue decreased to EUR 141.5 (144.1) million. - The Group's gross margin was 57.8% (58.4).
- The Group's adjusted operating result declined to EUR 13.5 (23.0) million.
- The Lindex division's adjusted operating result declined to EUR 22.5 (35.0) million.
- The Stockmann division's adjusted operating result improved to EUR -7.1 (-10.0) million. - Operating result improved to EUR 15.9 (12.7) million.
- Net result was EUR -7.1 (-8.4) million.
- Basic and diluted earnings per share were EUR -0.04 (-0.05).
Guidance for 2025 (unchanged):
In 2025, Lindex Group expects its revenue to increase by 0-4% in local currencies compared to 2024. The Group's adjusted operating result is estimated to be EUR 70-90 million. Foreign exchange rate fluctuations may have a significant effect on the adjusted operating result.
Market outlook for 2025:
The macroeconomic outlook in Lindex Group's main markets is estimated to remain volatile. Continuing geopolitical uncertainty, together with the increased risks for global trade disturbances, may have a negative impact on the economic recovery. Despite lower interest rates and decreased inflation, GDP (Gross Domestic Product) growth forecasts for 2025 are moderate. However, consumer confidence shows some early signs of gradual improvement, which, together with increasing household purchasing power, may begin to support a more favourable development in consumer demand during the latter part of the year. The situation may still vary across the Group's different markets, and disruptions in supply chains and international logistics during the year cannot be excluded.
CEO Susanne Ehnbåge:
In the second quarter, Lindex Group succeeded to grow in a difficult market as both divisions over-performed the overall fashion market development in our biggest home markets. The start of the year was challenging; however, we see a gradual improvement in consumer confidence and maintain our full-year guidance. It is an important milestone for us that the Group is finally about to complete the corporate restructuring programme.
The Group's revenue increased by 0.9% while the Lindex division saw an increase of 1.5%. The Stockmann division's revenue was at the previous year's level. Both divisions' performance was negatively impacted by the delayed and cold onset of summer that weakened demand for seasonal fashion apparel. In addition, the dampened consumer confidence and fashion market volatility continued.
I am pleased with the digital revenue growth of both divisions as it strengthens Lindex's and Stockmann's strategic omnichannel approach. The Lindex division's digital revenue increased by a double-digit percentage and the share of Stockmann's digital sales of the total revenue continued to grow as well. The amount of active loyal customers increased in both divisions.
The Group's adjusted operating result decreased to EUR 22.2 (29.5) million due to the decline in the Lindex division's gross margin. The gross margin was negatively impacted by the increased number of promotional activities reflecting the cost-conscious consumer sentiment and price-driven competition landscape. At the same time, I want to highlight Stockmann's adjusted operating result improving to EUR 0.2 (-0.6) million, despite the headwind of the operating environment. This marked the fifth consecutive quarter of Stockmann's result improvement and the division's first second quarter with positive adjusted operating result after many years.
Our dedicated Lindex team continued to work on the extensive ramp-up and transition phase of our new omnichannel distribution centre. The investment is an important enabler of our strategic long-term growth plan.
In June, the Helsinki District Court approved Lindex Group's application for the amendment of our restructuring programme. Being able to soon leave the long restructuring process behind is a major achievement and opens a new momentum of progress for the Group. Ending the restructuring is also bringing a renewed focus to the strategic assessment related to the Stockmann department store business. Different strategic alternatives for the business are being evaluated, and the outcome of this work will be communicated during the second half of 2025.
In June, Stockmann's ITIS department store in Helsinki was closed in line with our earlier communication. I would like to express my heartfelt thanks to the personnel of ITIS for their long-standing commitment to our customers, and everyone's dedication during the close-down period.
I also want to sincerely thank all our employees, customers, shareholders, and partners for their commitment, trust, and cooperation during the first half of 2025. We are devoted to continuing our growth across markets and channels by further developing our inspiring offering, customer-facing touchpoints and advancing towards our sustainability targets.
KEY FIGURES
| 4-6 2025 | 4-6 2024 | 1-6 2025 | 1-6 2024 | 1-12 2024 | |
| Revenue, EUR mill. | 253.9 | 251.6 | 439.9 | 444.4 | 940.1 |
| Revenue growth, % | 0.9 | -0.2 | -1.0 | -1.3 | -1.2 |
| Local currency revenue growth, % | 0.2 | -1.0 | -1.2 | -2.0 | -1.3 |
| Digital share of revenue, % | 18.7 | 17.2 | 19.2 | 17.9 | 18.1 |
| Digital revenue growth in local currencies, % | 9.2 | 6.5 | 5.5 | 4.5 | 6.3 |
| Gross profit, EUR mill. | 147.2 | 150.9 | 254.1 | 259.4 | 547.9 |
| Gross margin, % | 58.0 | 60.0 | 57.8 | 58.4 | 58.3 |
| Adjusted operating result, EUR mill. | 22.2 | 29.5 | 13.5 | 23.0 | 74.9 |
| Adjusted operating margin, % | 8.7 | 11.7 | 3.1 | 5.2 | 8.0 |
| Operating result, EUR mill. | 25.5 | 20.3 | 15.9 | 12.7 | 60.9 |
| Operating margin, % | 10.0 | 8.1 | 3.6 | 2.9 | 6.5 |
| Net result for the period, EUR mill. | 13.1 | 7.0 | -7.1 | -8.4 | 13.2 |
| Net debt excluding IFRS 16, EUR mill. | -1.1 | -30.0 | -31.8 | ||
| Equity ratio, % | 30.3 | 28.6 | 30.0 | ||
| Equity ratio excluding IFRS 16, % | 62.2 | 60.5 | 61.9 | ||
| Inventories, EUR mill. | 183.0 | 173.8 | 169.6 | ||
| Operating free cash flow, EUR mill. | 40.1 | 27.7 | -17.3 | -15.8 | 20.3 |
| Capital expenditure, EUR mill. | 9.1 | 10.0 | 15.9 | 16.9 | 45.7 |
| EPS, basic and diluted, EUR | 0.08 | 0.04 | -0.04 | -0.05 | 0.08 |
| Number of employees, average | 5 934 | 6 021 | 5 746 |
ITEMS AFFECTING COMPARABILITY (IAC)
| EUR million | 4-6 2025 | 4-6 2024 | 1-6 2025 | 1-6 2024 | 1-12 2024 |
| Operating result | 25.5 | 20.3 | 15.9 | 12.7 | 60.9 |
| Adjustments to operating result | |||||
| Costs related to restructuring programme and other disputes | -5.3 | 7.7 | -5.2 | 10.5 | 10.9 |
| Costs related to strategic projects and structural changes | 2.0 | 1.4 | 2.7 | 4.2 | 7.5 |
| Insurance claim settlement for losses related to COVID-19 | 0.0 | -4.5 | -4.4 | ||
| Adjusted operating result | 22.2 | 29.5 | 13.5 | 23.0 | 74.9 |
STRATEGY
Lindex Group's two divisions, Lindex and Stockmann, have their own strategies targeting sustainable and profitable growth. The divisions share the view that customer centricity, an omnichannel approach and strong brands are key strategic factors in building future growth. Lindex Group has ambitious sustainability targets, and sustainability is a central part of the Group's operations.
The Lindex division's strategy builds on Lindex's purpose of empowering and inspiring women everywhere. The division's three strategic must-win areas are to accelerate growth, transform into a sustainable business, and decouple cost from growth. The Stockmann division's customer-centric strategy builds on Stockmann's purpose of being a marketplace for a good life. The Stockmann division has four strategic must-win areas, which are to elevate offering by increasing focus on premium and luxury, grow and leverage loyal customer base, optimise omnichannel performance and improve operational efficiency.
Both divisions are committed to Lindex Group's science-based climate target to reduce greenhouse gas emissions from its own operations and value chain by 42% by 2030 compared to the year 2022. The Science Based Targets initiative (SBTi) has validated and approved the Group's climate target.
In September 2023, Lindex Group's Board of Directors initiated a strategic assessment aiming to crystallise shareholder value by refocusing the Group's business on Lindex. As part of the investigation of strategic alternatives for Stockmann's department stores business, the Board is evaluating the best environment for developing the business in the future. These options include increasing the business' independence within the Group, considering possible ownership changes or strategic partnerships, or continuing under the current structure. In June 2025, Lindex Group announced that its Board of Directors continues the strategic assessment, and the Group will communicate the outcome of this work during the second half of 2025.
Half-year Financial Report
This company announcement is a summary of the Lindex Group's Half-year Financial Report 1 January - 30 June 2025 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company's website lindex-group.com.
Financial releases in 2025
Lindex Group will publish its financial reports in 2025 as follows:
- Interim Report, January-September: 24 October 2025
Webcast for analysts and the media
A media and analyst briefing will be held in English as a live webcast today, on 18 July 2025 at 10:00 a.m. EEST. The event can be followed via this link. The recording and presentation material will be available on the company's website after the event.
LINDEX GROUP plc
Susanne Ehnbåge
CEO
Further information:
Susanne Ehnbåge, CEO
Henrik Henriksson, CFO
Contact via Lindex Group's MediaDesk info@stockmann.com, tel. +358 50 389 0011
Marja-Leena Dahlskog, Head of Communications & IR, tel. + 358 50 502 0060
Distribution:
Nasdaq Helsinki
Principal media
Lindex Group plc is an international multichannel retail group with two divisions: Lindex and Stockmann. Lindex is a global fashion company with a purpose to empower and inspire women everywhere. Its three strong categories include women's and kids' wear as well as lingerie, where it is a market leader in the Nordics. Stockmann is a premium multi-brand retailer with department stores in Finland and the Baltics. Its purpose is to be a marketplace for a good life. In 2024, the Lindex Group's revenue was EUR 940 million and it had some 5 750 employees. The Group's roots lie in the Stockmann company founded in 1862 and its shares are listed on the Nasdaq Helsinki Ltd. in Finland. www.lindex-group.com
