CEO’s review
CEO Susanne Ehnbåge, Lindex Group’s Half-year Financial Report Q2 2025, published on 18 July 2025.
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.
2025 . All rights reserved.