CEO’s review
CEO Susanne Ehnbåge, Lindex Group’s Finacial Statements Bulletin 2024, published on 7 February 2025.
In 2024, we continued our target-oriented work to build a solid, yet scalable foundation for the future of Lindex Group. In line with our strategy, we want to be fit for capturing new business opportunities, accelerating growth and enhancing value creation for our customers and shareholders. While focusing on serving and inspiring our customers with new collections and services, we made a good and concrete progress in the strategic focus areas of both Lindex and Stockmann division. During the year, we completed several strategic development projects enabling our future success.
We had a strong finish to the year despite the challenging market environment. In the fourth quarter, the Group’s adjusted operating result increased to EUR 36.1 (30.2) million, driven by improved gross profit and good cost control. I am pleased with the excellent work done in both divisions that materialised in a significant improvement of the Lindex division’s adjusted operating result and in an improvement of the Stockmann division’s adjusted operating result. The Group’s revenue was on par with the comparison period, reflecting the continued volatility in the fashion market throughout the year.
Regarding our full year performance, weaker purchasing power and low consumer confidence continued to affect the demand on our main markets and impacted the Group’s revenue and result. In addition, the logistical challenges faced by the Lindex division mainly during the third quarter had an impact on the performance. Consequently, Lindex Group’s adjusted operating result decreased to EUR 74.9 (80.0) million due to lower gross profit and continued investments in the Lindex division’s future growth. The Lindex division’s adjusted operating result decreased, while the Stockmann division’s adjusted operating result improved. Both businesses reported slightly lower revenue compared to the previous year.
A successful launch of the Lindex division’s highly automated omnichannel distribution centre took place in November and is now followed by a ramp-up and transition phase. The new facility is planned to be fully operational during 2025 and it will replace the current warehouses. Going forward, the new centre will quadruple Lindex´s e-commerce capacity and supply all Lindex fashion stores and partners. We also implemented new digital solutions in both divisions’ stores and supply chains, improving customer experience and operational efficiency.
In addition, our journey to reduce climate impact and drive circularity in our assortments continued. In June, the Science Based Targets initiative (SBTi) approved Lindex Group’s emission reduction target, which is to reduce absolute greenhouse gas emissions from our own operations and value chain by 42% by 2030 compared to 2022.
I am delighted to see how the Lindex and the Stockmann brands, collections and services continue to resonate among our customers. The amount of new and active loyal customers increased during the year in both divisions. The year also marked the 70th anniversary of Lindex. I see that what once started as a small lingerie company in Alingsås in Sweden is today a growing brand-led international fashion company with a bright future.
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. In December 2024, we announced that our Board of Directors will continue to investigate strategic alternatives for the Stockmann department store business. The assessment is expected to be finalised during the first half of 2025. As part of the strategic assessment, Stockmann plc changed its name to Lindex Group plc in March 2024. The restructuring programme of Lindex Group continued to progress during 2024, and all confirmed undisputed debts have now been paid. The restructuring programme has one disputed claim remaining.
I want to sincerely thank everyone at Lindex and Stockmann for their hard work and dedication towards our ambitious goals. I am excited to continue our journey together with our personnel, customers and partners, striving to strengthen our company, drive growth, and increase shareholder value.