Lindex Group (LINDEX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue remained stable at EUR 251.6 million, down 0.2% year-over-year, with a 1.0% decline in local currencies; H1 2024 revenue was EUR 444.4 million, down 1.3% year-over-year.

• Stockmann division improved its result and increased revenue, while Lindex saw a decline in June after strong April and May; Stockmann's Crazy Days campaign and cost efficiencies boosted results.

• Adjusted operating result declined to EUR 29.5 million in Q2 and EUR 23.0 million in H1, mainly due to lower store traffic in June and higher planned costs for marketing and digital development.

• Strategic assessment to refocus on Lindex is ongoing, expected to conclude in 2024; only one disputed claim remains in the restructuring programme.

• Science Based Targets initiative approved the group's climate targets, aiming for a 42% reduction in greenhouse gas emissions by 2030.

Financial highlights

• Q2 2024 revenue was EUR 251.6 million, nearly flat year-over-year (-0.2%); H1 2024 revenue was EUR 444.4 million, down 1.3%.

• Adjusted operating result for Q2 was EUR 29.5 million, down from EUR 31.6 million in Q2 2023; net result for Q2 was EUR 7.0 million (vs. EUR 13.8 million last year); EPS EUR 0.04.

• Group gross margin stable at 60% in Q2; H1 gross margin was 58.4%.

• Digital share of revenue increased to 17.2% in Q2; digital revenue grew 6.5% in Q2 in local currencies.

• Operating free cash flow in H1 declined, mainly due to lower accruals, higher lease payments, and lower results; cash and cash equivalents at end of June were EUR 103.1 million.

Outlook and guidance

• 2024 revenue in local currencies expected to range from -2% to +2% versus 2023; adjusted operating result estimated at EUR 70–90 million.

• Guidance for adjusted operating result remains unchanged despite market volatility; foreign exchange rate fluctuations may significantly affect results.

• Market environment remains challenging due to macroeconomic uncertainty, high interest rates, and inflation; retail sector faces lower consumer demand.