The income of both divisions (Lindex and Stockmann) were negatively affected by the weakened consumer's confidence and the continuous volatility of the fashion market, said Lindex Group in a statement.
Lindex Group has reported income of € 186 million (~ $ 199.02 million) in the first quarter of 2025, 3 percent less, with a gross margin of 57.4 percent. The income decreased both in Lindex and Stockmann divisions due to the weak consumer confidence. While Lindex faced supply delays, Stockmann improved efficiency. The group expects the income of 2025 to grow by 0-4 percent amid geopolitical challenges.
The revenues of the Lindex division was € 126.3 million, a decrease of 3.3 percent year -on -year. The adjusted operational result of the division decreased to € 0.3 million due to the decrease in revenues and the highest operating costs.
Meanwhile, the income of the Stockmann division decreased by 3.9 percent to € 59.8 million, mainly due to a decrease in fashion category sales. Its adjusted operational result improved 7.3 million euros negative due to successful profitability efficiency measures.
In the first quarter of 2025, Stockmann Division strengthened its assortment when entering new concession associations, introducing unique products, services and experiences to complement its central offer. While Lindex faced delays in temporary supply, efforts to improve the future availability of the product continue through the increase of their new omnichannel distribution center.
The group's operational result decreased to € 9.5 million and the net result decreased to € 20.2 million. The basic profits per action (EPS) were negative € 0.13, and the diluted EPs were negative € 0.12.
“During the first quarter, Lindex Group made good progress in the execution of strategic initiatives to accelerate future growth and the creation of the company's value. In the Lindex division, we continue the extensive phase of increase and transition of the new omnichannel distribution center that allows us to execute our long -term growth plans and our long -term logistics operations,” he said Susanne Ehnbage, Executive Director (CEO) in Lindex Group.
“In addition, the important digital transformation efforts of the Lindex division progressed well with continuous improvements of customer -oriented contact points and improved internal capabilities. The number of active clients increased for both divisions, and the Lindex division continued to expand its international presence, for example, launching a new Lindex Kids in London store,” Ehbage added.
For full year 2025, Lindex Group expects their income to increase by 0 to 4 percent. The adjusted operational result of the group is estimated at € 70-90 million (~ $ 74.9- $ 96.3 million).
Exchange rate fluctuations may have a significant effect on the adjusted operational result. It is estimated that the macroeconomic situation in the main markets of the group is still challenging, especially during the first half of the year. The continuous geopolitical uncertainty, together with the greatest risks of global commercial disturbances, can have a negative impact on economic recovery, added liberation.
Fiber2Fashion News Desk (SG)
