Lindex Group said its revenue “remained stable in a challenging market” in Q2, although planned growth investments impacted its adjusted operating result.

The company, which owns the Lindex and Stockmann brands, said the April to June quarter saw revenue of €251.6 million compared to €252 million a year ago. That was only a 0.2% fall but a 1% dip in local currencies.

The Lindex division wasn’t the star performer for once as its revenue fell from €176.2 million down to €169.7 million due to a lower number of visitors in stores in June, which is disappointing after April and May had been stronger. In local currencies, revenue decreased by 4.9%.

By contrast, the Stockmann division’s revenue increased to €81.9 million from €75.8 million, due to the “timing and success” of the Crazy Days campaign. In 2024, the campaign was held at the beginning of the second quarter in April, while in 2023, it contributed both to the first and second quarter.
The group’s gross margin was almost level with the comparison period at 60% from 60.1% a year ago.

But adjusted operating profit fell to €29.5 million from €31.6 million.

For the Lindex division the profit decline was quite marked from €36.2 million down to €30.8 million, which the company explained by the lower revenue during June and “planned higher costs for marketing and digital development enabling future growth”.

Stockmann’s result improved to a loss of €0.6 million from a loss of €3.5 million a year ago, boosted both by that sales campaign and by cost cuts.

Operating profit for the group fell to €20.3 million from €30.2 million “mainly due to settling disputes related to the restructuring programme” and net profit was down to €7 million from €13.8 million.

For the full year, the company expects revenue in local currencies to be anything from down 2% to up 2% you on year.

And adjusted operating profit is estimated to be between €70 million and €90 million. Exchange rate fluctuations could have a significant effect on that. 

The sales prediction is down on its previous guidance, which had been an expected revenue increase on between 1% and 3%, although the profit prediction was the same.

The company said the market environment in 2024 is expected to remain challenging but CEO Susanne Ehnbåge said the business is “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”.