Finland's Lindex Group's Q2 revenue rises 0.9%, maintains outlook

However, the gross margin of the group declined to 58 per cent from 60 per cent, primarily due to increased promotional activity in a price-sensitive market environment. The adjusted operating result declined to €22.2 million, as the Lindex division’s margin weakened. Nonetheless, the overall operating result increased to €25.5 million and net profit improved to €13.1 million from €7 million. The digital revenue share increased to 18.7 per cent, compared to 17.2 per cent in the prior-year quarter.

In Q2, the Lindex division posted a 1.5 per cent revenue increase to €172.3 million, while Stockmann’s revenue remained stable at €81.7 million. However, Stockmann’s adjusted operating result improved to €0.2 million, reflecting effective cost controls.

The group’s operating result increased to €25.5 million from €20.3 million, and net profit rose to €13.1 million from €7 million. Basic and diluted earnings per share improved to €0.08 from €0.04.

Meanwhile, in the first half (H1) of 2025, the group reported a revenue of €439.9 million (~$514.68 million), down 1 per cent YoY and 1.2 per cent in local currencies.

“In the second quarter, Lindex Group succeeded to grow in a difficult market as both divisions over-performed the overall fashion market development in our biggest home markets,” said Susanne Ehnbage, chief executive officer (CEO) at Lindex Group. “I am pleased with the digital revenue growth of both divisions as it strengthens Lindex’s and Stockmann’s strategic omnichannel approach. The Lindex division’s digital revenue increased by a double-digit percentage and the share of Stockmann’s digital sales of the total revenue continued to grow as well. The amount of active loyal customers increased in both divisions.”

In H1, the Lindex division’s revenue declined slightly to €298.6 million, while the Stockmann division’s revenue fell to €141.5 million. The gross margin eased to 57.8 per cent from 58.4 per cent. The adjusted operating result dropped to €13.5 million from €23 million, with Lindex’s result decreasing to €22.5 million and Stockmann’s improving to -€7.1 million from -€10 million.

Despite the lower adjusted figures, the group’s overall operating result rose to €15.9 million from €12.7 million. The net result stood at -€7.1 million, compared to -€8.4 million in the same period last year, while basic and diluted earnings per share were -€0.04, an improvement from -€0.05.

The group is in the final stages of concluding its corporate restructuring programme, with completion expected in the third quarter (Q3) of 2025. The Helsinki District Court has approved an amendment to the restructuring plan. Strategic options for the Stockmann department store business—ranging from increased independence to potential ownership changes—are under continued evaluation, with outcomes expected later in the year, Lindex Group said in a press release.

It also reaffirmed its sustainability goals, targeting a 42 per cent reduction in greenhouse gas emissions by 2030, validated by the Science Based Targets initiative.

Lindex Group maintained its full-year guidance, forecasting a revenue rise of 0–4 per cent in local currencies and an adjusted operating result between €70–90 million (~$81.90-105.30 million). It anticipates a continued market volatility in 2025 due to geopolitical uncertainty and global trade risks.

While lower interest rates and easing inflation offer some relief, GDP growth remains moderate. Improving consumer confidence and rising household purchasing power may support stronger demand later in the year, though market conditions and supply chain disruptions may still vary by region.

“The start of the year was challenging; however, we see a gradual improvement in consumer confidence and maintain our full-year guidance. It is an important milestone for us that the group is finally about to complete the corporate restructuring programme,” added Ehnbage.

ALCHEMPro News Desk (SG)