Lindex Group (LINDEX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined to EUR 186.0 million, down 3–3.5% year-over-year, impacted by weak consumer confidence, fashion market volatility, and logistical challenges, including supply delays at Lindex's new omnichannel distribution center.

• Adjusted operating result fell to EUR -8.7 million from EUR -6.5 million year-over-year, with Lindex division affected by higher costs and supply delays, while Stockmann division improved its adjusted operating result for the fourth consecutive quarter.

• Strategic assessment to focus the group on Lindex and potentially divest Stockmann is ongoing, with a decision expected by end of June 2025.

• Net result declined to EUR -20.2 million, and basic EPS dropped to EUR -0.13.

Financial highlights

• Group revenue for Q1 totaled EUR 186.0 million, declining by 3–3.5% in local currencies year-over-year.

• Group gross margin improved to 57.4% from 56.3% year-over-year.

• Adjusted operating result was EUR -8.7 million; net result was EUR -20.2 million.

• Basic EPS was EUR -0.13, down from EUR -0.10 year-over-year.

• Operating free cash flow was EUR -57.4 million, mainly due to higher inventories and lower accounts payable.

Outlook and guidance

• Revenue in local currencies for 2025 is expected to increase by 0–4% compared to 2024.

• Adjusted operating result guidance for 2025 is EUR 70–90 million, with FX fluctuations as a significant risk.

• Macroeconomic environment expected to remain challenging in H1 2025, with possible improvement in H2 if interest rates decline and inflation stays stable.

• Lindex will focus on ramping up the new distribution center, digital transformation, and international expansion; Stockmann will continue efficiency and profitability measures.