Lindex Group's third quarter revenue and adjusted operating result improved, Stockmann division's result improved for the sixth consecutive quarter
LINDEX GROUP plc, Interim report 24.10.2025 at 8.30 EEST
Lindex Group's Interim Report 1 January-30 September 2025
Lindex Group's third quarter revenue and adjusted operating result improved, Stockmann division's result improved for the sixth consecutive quarter
July-September 2025:
Lindex Group plc's restructuring programme was concluded on 15 August 2025.
Lindex Group's revenue increased by 2.5% to EUR 227.6 (222.1) million. The revenue was at the previous year's level in local currencies.
- The Lindex division's revenue was EUR 165.4 (159.3) million. The revenue increased by 3.8%, and by 1.0% in local currencies.
- The Stockmann division's revenue, EUR 62.4 (62.9) million, stood at the previous year's level.
The Group's gross margin was 58.0% (58.2).
The Group's adjusted operating result increased to EUR 16.6 (15.8) million.
- The Lindex division's adjusted operating result, EUR 20.2 (21.1) million, was impacted by a decrease in gross margin, increased operating costs and depreciations. The Lindex division's performance was impacted by temporary supply limitations.
- The Stockmann division's adjusted operating result improved to EUR -2.6 (-4.5) million, mainly thanks to the impact of systematic operational and cost efficiency measures.Operating result was on par with the comparison period, at EUR 15.1 (15.0) million.
Net result was on par with the comparison period, at EUR 1.9 (1.8) million.
Basic and diluted earnings per share were EUR 0.01 (0.01).
January-September 2025:
Lindex Group's revenue was EUR 667.5 (666.5) million. The revenue was at the previous year's level in local currencies.
- The Lindex division's revenue increased to EUR 464.0 (459.7) million. In local currencies, the revenue was at the previous year's level.
- The Stockmann division's revenue was EUR 203.9 (206.9) million.The Group's gross margin was 57.8% (58.3).
The Group's adjusted operating result declined to EUR 30.1 (38.8) million.
- The Lindex division's adjusted operating result declined to EUR 42.7 (56.1) million.
- The Stockmann division's adjusted operating result improved to EUR -9.7 (-14.5) million.Operating result improved to EUR 31.0 (27.7) million.
Net result was EUR -5.2 (-6.5) million.
Basic and diluted earnings per share were EUR -0.03 (-0.04).
Guidance for 2025 (specified on 24 October 2025):
In 2025, Lindex Group expects its revenue to increase by 0-2% in local currencies compared to 2024. The Group's adjusted operating result is estimated to be EUR 70-80 million. Foreign exchange rate fluctuations may have a significant effect on the adjusted operating result.
Previous guidance for 2025 (published on 7 February 2025):
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 situation in Lindex Group's main markets has been volatile throughout the year as continuing geopolitical uncertainty, together with the risks for global trade disturbances, have slowed down the economic recovery. Despite lower interest rates and decreased inflation, GDP (Gross Domestic Product) growth forecasts for 2025 have remained very cautious. However, consumer confidence shows some signs of gradual improvement, which, together with increasing household purchasing power, may support a more favourable development in consumer demand during the remaining 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:
The key highlight of the third quarter was the conclusion of Lindex Group's five-year long corporate restructuring programme. We reached this significant milestone on 15 August 2025 and are now well-positioned to develop our business on a long term and focus on achieving sustainable growth. When it comes to the strategic assessment of the Stockmann department store business, the Board of Directors continues to evaluate the strategic alternatives for the business. The outcome of this evaluation will be communicated during the fourth quarter.
A gradual improvement of consumer confidence continued during the third quarter in most of our key markets. This development was reflected also in the recovery of the fashion market, which represents the single biggest category of Lindex Group. The fashion market started to pick up during the quarter in our biggest home markets, which contributed positively to the Group's revenue.
Lindex Group's revenue increased to EUR 227.6 (222.1) million and adjusted operating result to EUR 16.6 (15.8) million during the third quarter. I am pleased that we were able to deliver growth, supported by the gradually recovering fashion market. In addition, we started the preparations for opening our first own store in Denmark, which supports well the strategic growth journey of the Lindex division.
The Lindex division's third-quarter revenue was EUR 165.4 (159.3) million and adjusted operating result stood at EUR 20.2 (21.1) million. The Lindex division's financial performance was impacted by a temporary technical issue at the new omnichannel distribution centre in August, which resulted in longer supply lead times, and impacted product availability in all our sales channels. The division's supply capability was stabilised after the reporting period.
The Stockmann division's revenue was EUR 62.4 (62.9) million and its adjusted operating result improved to EUR -2.6 (-4.5) million. I am very pleased with the Stockmann division's result improvement, which already marked the sixth consecutive quarter of improving results. The Stockmann division's rolling 12-month adjusted operating result, EUR 0.9 million, was also the first positive rolling 12-month result for the division in many years. The team's focused efforts on Stockmann's strategic priorities paid off as the operational and cost efficiency measures improved profitability. In addition, Stockmann achieved a 14% increase in digital sales during the third quarter, supporting its strategic target to enhance digital commerce as the driver of Stockmann's omnichannel performance.
Stockmann's Crazy Days campaign, which was held after the reporting period, performed better than in the previous year. This is a great achievement, considering that Stockmann is today operating with seven department stores instead of the eight stores during the comparison period.
As we step into the holiday season, I'm filled with optimism and energy. This time of the year offers us a unique opportunity to shine - by delivering exceptional service, showcasing the best of what we offer, and creating moments that truly matter to our customers. Our success is built on the dedication and passion of our people. Together, we can make this season not only successful, but genuinely memorable.
KEY FIGURES
| 7-9 2025 | 7-9 2024 | 1-9 2025 | 1-9 2024 | 1-12 2024 | |
| Revenue, EUR mill. | 227.6 | 222.1 | 667.5 | 666.5 | 940.1 |
| Revenue growth, % | 2.5 | -2.1 | 0.2 | -1.6 | -1.2 |
| Local currency revenue growth, % | 0.5 | -2.6 | -0.6 | -2.2 | -1.3 |
| Digital share of revenue, % | 18.0 | 17.8 | 18.8 | 17.7 | 18.1 |
| Digital revenue growth in local currencies, % | 1.3 | 6.7 | 4.0 | 5.3 | 6.3 |
| Gross profit, EUR mill. | 132.0 | 129.3 | 386.1 | 388.8 | 547.9 |
| Gross margin, % | 58.0 | 58.2 | 57.8 | 58.3 | 58.3 |
| Adjusted operating result, EUR mill. | 16.6 | 15.8 | 30.1 | 38.8 | 74.9 |
| Adjusted operating margin, % | 7.3 | 7.1 | 4.5 | 5.8 | 8.0 |
| Operating result, EUR mill. | 15.1 | 15.0 | 31.0 | 27.7 | 60.9 |
| Operating margin, % | 6.6 | 6.8 | 4.6 | 4.2 | 6.5 |
| Net result for the period, EUR mill. | 1.9 | 1.8 | -5.2 | -6.5 | 13.2 |
| Net debt excluding IFRS 16, EUR mill. | 30.5 | 7.2 | -31.8 | ||
| Equity ratio, % | 31.8 | 29.2 | 30.0 | ||
| Equity ratio excluding IFRS 16, % | 64.3 | 61.9 | 61.9 | ||
| Inventories, EUR mill. | 193.9 | 198.6 | 169.6 | ||
| Operating free cash flow, EUR mill. | -18.3 | -24.7 | -35.5 | -40.5 | 20.3 |
| Capital expenditure, EUR mill. | 7.3 | 8.4 | 23.3 | 25.2 | 45.7 |
| EPS, basic and diluted, EUR | 0.01 | 0.01 | -0.03 | -0.04 | 0.08 |
| Number of employees, average | 5 954 | 6 109 | 5 746 |
ITEMS AFFECTING COMPARABILITY (IAC)
| EUR million | 7-9 2025 | 7-9 2024 | 1-9 2025 | 1-9 2024 | 1-12 2024 |
| Operating result | 15.1 | 15.0 | 31.0 | 27.7 | 60.9 |
| Adjustments to operating result | |||||
| Costs and reversals related to restructuring programme and other disputes | 0.2 | 0.2 | -5.0 | 10.7 | 10.9 |
| Costs related to strategic projects and structural changes | 1.3 | 0.6 | 4.1 | 4.9 | 7.5 |
| Insurance claim settlement for losses related to COVID-19 | -4.4 | -4.4 | |||
| Adjusted operating result | 16.6 | 15.8 | 30.1 | 38.8 | 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.
CONCLUSION OF THE RESTRUCTURING PROCESS
On 15 August 2025, Lindex Group plc announced that the company's restructuring programme had concluded. The commencement of restructuring proceedings was confirmed in April 2020, and the corporate restructuring programme was approved in February 2021 by the Helsinki District Court.
The last remaining dispute of the restructuring programme was settled between LähiTapiola Keskustakiinteistöt Ky and Lindex Group plc on 9 June 2025, which enabled the Lindex Group plc to seek ending the restructuring programme. The Helsinki District Court approved the amendment to the restructuring programme on 27 June 2025, after which Lindex Group plc proceeded to fulfil the obligations agreed in the settlement agreement and the restructuring programme by paying all undisputed debts, confirmed in their final amounts. After the actions were implemented, the supervisor of Lindex Group plc's restructuring programme prepared a final report on the implementation of the programme, which ended the restructuring process on 15 August 2025.
Lindex Group's balance sheet at the end of September does not include any provisions related to the restructuring programme. The provision for the last disputed claim was EUR 15.9 million and it was partially offset against the final compensation for damages during the second quarter. The unused portion was released through the income statement. The settlement of the last dispute has not affected Lindex Group's adjusted operating result in 2025, but it has had a positive impact on the operating result.
Interim Report
This company announcement is a summary of the Lindex Group's Interim Report 1 January - 30 September 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 lindexgroup.com.
Webcast for analysts and the media
A media and analyst briefing will be held in English as a live webcast today, on 24 October 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.lindexgroup.com