CEO’s review
CEO Susanne Ehnbåge, Lindex Group’s Interim Report 1 January – 31 March 2024, published on 26 April 2024.
During the first quarter, we progressed well with strategy implementation in both divisions. On 21 March 2024, our Annual General Meeting made the decision to change the parent company’s name from Stockmann plc to Lindex Group plc. The name change reflects the Lindex division’s strengthened role in the Group’s business and emphasises that the Group has moved on to a new strategic phase where it aims to further grow shareholder value.
The parent company’s name change was part of a strategic assessment aiming to crystallise shareholder value by refocusing the Group’s business on Lindex. The 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. After the review period, we reached a settlement agreement with Nordika II SHQ Oy, which means that there is only one disputed claim left.
In January-March, the market environment remained challenging, with modest or negative market development in Lindex Group’s key markets. However, the Group’s underlying revenue increased, excluding the negative impact of the timing of the Crazy Days campaign. In addition, the Lindex division outperformed the market once again and continues its growth journey.
Lindex Group’s adjusted operating result declined to EUR -6.5 (-2.4) million. The key reasons for the decline were the timing of the Stockmann division’s Crazy Days campaign as well as increased freight costs due to unexpected logistic challenges in the Red Sea affecting the Lindex division. The Lindex division increased revenue and strategically important share of digital revenue and continued to expand market presence with partnerships. The Stockmann division performed well, both in terms of revenue and adjusted operating result, when excluding the impacts of the timing of Crazy Days. The Stockmann division’s Crazy Days campaign was held after the review period, and it performed better than previous year. Furthermore, we have a solid action plan to improve profitability in the coming quarters.
Going forward, Lindex Group has a clear target: sustainable and profitable growth. I am happy to see our team’s dedication to implementing the strategy and their commitment to our financial and sustainability goals. The Group’s improved financial position serves as a solid foundation for further development and investments in areas such as process efficiency and digitalisation in order to enable the planned growth. The construction of Lindex’s new EUR 110 million omnichannel distribution centre is proceeding well, and we target it to be operational in the Autumn 2024.
I am personally impressed by the hard work our team members have invested in implementing our divisions’ strategies. I am confident that the decisions that have been made are supporting our journey towards an even stronger Lindex Group.
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