CEO’s review

CEO Susanne Ehnbåge, Lindex Group’s Half-year Finacial Report 2024, published on 19 July 2024.

At Lindex Group, we are continuing our strategic journey to accelerate growth and value creation. While focusing on delivering our financial targets, we are doing our utmost to secure that Lindex Group is fit for capturing the future business opportunities. We continue to deepen our understanding of the customers, enhance our offering, develop new sales channels, invest in digitalisation, streamlining processes and proceeding in our sustainability agenda – all in line with our divisions’ strategies.

Lindex Group’s second quarter was twofold. In April and May, our performance was good in both divisions. However, in June, the revenue declined due to lower visitor numbers in stores, especially in the Lindex division. Despite this, the Group’s revenue and gross margin remained at the comparison period level, largely thanks to the Stockmann division’s successful Crazy Days campaign in April.

The Group’s adjusted operating result declined due to the revenue decline in June and planned higher costs for marketing and digital development for enabling future growth. I am pleased that the Stockmann division improved its adjusted operating result month by month compared to the previous year. This improvement, driven by enhanced operational efficiency, mitigated some of the result decline in the Group. The reasons behind the revenue decline in June have been analysed, revealing a drop across the entire fashion market. As we have communicated, the market outlook remains challenging.

In June, the Science Based Targets initiative (SBTi) approved Lindex Group’s science-based climate target, which is to reduce greenhouse gas emissions by 42% by 2030 compared to 2022 both in our own operations (Scope 1 and 2) and value chain (Scope 3). SBTi’s validation encourages us to continue accelerating climate actions while growing our business profitably and sustainably. The validation is an important milestone in our journey to reduce climate impacts, and our systematic approach has already resulted in significant emission reductions.

Lindex Group continues to investigate strategic alternatives for the Stockmann department stores business, and we expect to finalise the assessment in 2024. We also aim to end our restructuring process as soon as possible. In the second quarter, we reached a settlement agreement with Nordika II SHQ Oy, which means that there is only one disputed claim left.

I am excited to continue our path towards sustainable and profitable growth together with the Lindex Group team. Our biggest investment in enabling future growth, Lindex’s new omnichannel distribution centre, will be taken into use in the autumn. In addition, our projects to develop digitalisation and streamline processes are proceeding well and supporting improved operational efficiency. I would like to thank all our employees for their contribution towards our strategic goals.

LINDEX group’s half-year financial REPORT 2024