CEO’s review
CEO Susanne Ehnbåge, Lindex Group’s Interim Report Q1 2025, published on 29 April 2025.
During the first quarter, Lindex Group made good progress in executing the strategic initiatives to accelerate the future growth and value creation of the company. In the Lindex division, we continued the extensive ramp-up and transition phase of the new omnichannel distribution centre which enables us to execute our long-term growth plans and future-proof our logistics operations. In addition, the important digital transformation efforts of the Lindex division progressed well with ongoing enhancements of customer-facing touchpoints and enhanced internal capabilities. The number of active customers increased for both divisions, and the Lindex division continued to expand its international presence by, for example, launching a new Lindex Kids store in London.
In the Stockmann division, the efforts to improve operational and organisational efficiency paid off and the division’s first quarter result improved, marking the fourth consecutive quarter of improvement. At the same time, we continued developing Stockmann’s strategic omnichannel approach, making the interaction of digital and physical channels as seamless as possible for our customers. We entered new concession partnerships to complement and elevate our own offering with new unique products, services and experiences.
Lindex Group’s revenue amounted to EUR 186.0 (192.8) in the first quarter. The revenue of both divisions was negatively impacted by weakened consumer confidence, and fashion market remained volatile. In addition, the comparison period was longer due to the leap day, which affected the revenue of both divisions. The Lindex division’s revenue also decreased due to the temporary supply delays related to the extensive ramp-up process of the new omnichannel distribution centre. In addition, the continued longer lead times of international logistics affected product availability in the Lindex stores and online. The Group’s adjusted operating result decreased to EUR -8.7 (-6.5) million, due to lower revenue in both divisions and higher operating costs in the Lindex division.
As mentioned above, our first quarter performance was impacted by the market environment that remained challenging. The continued geopolitical tensions and risks of unexpected changes in global trade policies increased uncertainty in our key markets and weakened the consumer confidence during the quarter. The consumer behaviour remained cautious, and on some markets, we saw a decrease both in employment expectations and in retail trade sales.
I am very pleased with all the achievements made during the first quarter but at the same time, we cannot be satisfied with our financial result, even though the underlying reasons affecting the result have been analysed, and corrective measures are under way.
When it comes to our restructuring programme, all confirmed undisputed debts have been paid and we have only one disputed claim left. A constructive and fair conclusion to the long restructuring process would be of significant mutual benefit to both our shareholders and Lindex Group. The strategic assessment, targeting to crystallise shareholder value by refocusing the Group’s business on Lindex, is ongoing. Lindex Group’s Board of Directors continues to investigate strategic alternatives for the Stockmann department store business and as earlier communicated, the Board expects to finalise the assessment by the end of June 2025.
After the reporting period, we held our first Annual General Meeting as Lindex Group plc. I would like to express my sincere thanks to the shareholders for attending the meeting and sharing your insights and comments both during and after the meeting. I also want to sincerely thank our personnel, customers, shareholders and partners for their commitment, trust and cooperation. I am excited to continue our journey together with you and make the year 2025 a year successful one for all of us.
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