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 7-9 1-9 1-9 1-12
2025 2024 2025 2024 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 7-9 1-9 1-9 1-12
2025 2024 2025 2024 2024
Operating result 15.1 15.0 31.0 27.7 60.9
Adjustments to operating result
Costs and reversals related to 0.2 0.2 -5.0 10.7 10.9
restructuring programme and other
disputes
Costs related to strategic projects 1.3 0.6 4.1 4.9 7.5
and structural changes
Insurance claim settlement for -4.4 -4.4
losses related to COVID-19
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 (https://www.lindexgroup.com/en/).
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 (https://lindex-group.events.inderes.com/q3-2025/register). 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.
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