Lindex Group (LINDEX) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased to EUR 253.9 million, up 0.9% year-over-year, with Lindex up 1.5% and Stockmann flat; both divisions outperformed the market despite volatility and weak consumer confidence.

• Adjusted operating result declined to EUR 22.2 million from EUR 29.5 million, mainly due to lower gross margin at Lindex, while Stockmann improved profitability for the fifth consecutive quarter.

• Digital sales grew strongly in both divisions, with Lindex digital revenue up 11.6% and digital share at 20.3%; Stockmann's digital share reached 15.9%.

• The ramp-up of Lindex's new omnichannel distribution centre continued, impacting logistics and inventory, with full operational benefits expected from 2026.

• The restructuring programme is nearing completion, with all major disputes settled and a final report expected in Q3 2025; strategic assessment of Stockmann's future is ongoing for H2 2025.

Financial highlights

• Q2 2025 revenue was EUR 253.9 million (+0.9% year-over-year); adjusted operating result was EUR 22.2 million (down from EUR 29.5 million); net result improved to EUR 13.1 million (up from EUR 7.0 million); EPS was EUR 0.08 (up from 0.04).

• Group gross margin declined to 58.0% from 60.0% year-over-year; Lindex gross margin fell to 64.5% from 67.5%.

• Stockmann's adjusted operating result improved to EUR 2.0 million from EUR 0.2 million; digital sales grew 3.5%.

• Operating free cash flow (excluding omnichannel investment) was EUR 40.1 million, up from EUR 27.7 million.

• Cash and cash equivalents at end of June were EUR 85.0 million, down from EUR 103.1 million year-over-year.

Outlook and guidance

• Full-year 2025 guidance maintained: revenue in local currencies expected to grow 0–4% versus 2024, with adjusted operating result between EUR 70 million and EUR 90 million.

• Gradual improvement in consumer confidence and economic recovery expected in H2, with operational efficiencies from the new distribution centre anticipated.

• Foreign exchange rate fluctuations may significantly affect results.