Lindex Group (LINDEX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined by 2.1% year-over-year to EUR 222.1 million, mainly due to challenging fashion markets, warm weather, and logistical disruptions.

• Adjusted operating result fell to EUR 15.8 million, impacted by lower revenue and increased costs, especially in Lindex.

• Stockmann division improved profitability through cost efficiency, despite a slight revenue decline.

• Strategic assessment for the Stockmann business is ongoing, with results expected by end of 2024.

• Net result for Q3 was EUR 1.8 million; EPS declined to EUR 0.01.

Financial highlights

• Group gross margin was stable at 58.2% in Q3 2024.

• Q3 adjusted operating result: EUR 15.8 million (down from EUR 20.6 million last year).

• Operating free cash flow for the first nine months: -EUR 40.5 million, mainly due to higher working capital and investments.

• Capital expenditure for the period: EUR 25.2 million, focused on digitalisation and omnichannel projects.

• Cash and cash equivalents at end of September: EUR 65.9 million (vs. EUR 108 million prior year).

Outlook and guidance

• 2024 revenue in local currencies expected to be between -2% and 0% versus 2023.

• Adjusted operating result estimated at EUR 70–80 million for the year.

• Foreign exchange rate fluctuations may significantly affect results.

• Market environment expected to remain challenging due to macroeconomic uncertainty, high interest rates, and inflation.