Stockmann-owner Lindex Group's Q2 revenues decline

Fashion retailer Lindex Group, having two divisions - Lindex and Stockmann under its fold, reported second quarter revenue of 251.6 million euros, a slight decrease of 0.2 percent or 1 percent in local currencies.

For the first half period, revenue was 444.4 million euros, down by 1.3 percent and 2 percent in local currencies.

Commenting on the company’s trading update, Lindex Group CEO Susanne Ehnbåge said in a statement: “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. 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.”

Review of Lindex Group’s Q2 and H1 results

In the second quarter, Lindex division’s revenue decreased to 169.7 million euros due to a lower number of visitors in stores in June. In local currencies, the revenue decreased by 4.9 percent. The Stockmann division’s revenue increased to 81.9 million euros, due to the timing and success of the Crazy Days campaign.

The Lindex division’s first half revenue decreased to 300.4 million euros, while in local currencies, the revenue decreased by 1.8 percent. The Stockmann division’s revenue decreased to 144.1 million euros.

The group’s gross margin was level with the comparison period at 60 percent, while adjusted operating result declined to 29.5 million euros and operating result declined to 20.3 million euros. Net result declined to 7 million euros for the second quarter and earnings per share declined to 0.04 euros.

The group’s gross margin in the first six month period was at 58.4 percent, adjusted operating result declined to 23 million euros and operating result was dropped to 12.7 million euros. Net result for the period declined to negative 8.4 million euros and earnings per share declined to negative 0.05 euros.

Lindex Group lowers revenue guidance

In 2024, Lindex Group expects its revenue in local currencies to be in the range of negative 2 percent to positive 2 percent compared to 2023.

Previously, the company expected its revenue to increase by 1 to 3 percent in local currencies compared to 2023.

The group’s outlook for adjusted operating result remains unchanged, which is estimated to be 70 to 90 million euros.