Finnish retailer Lindex Group reported a revenue of €186 million (~$199.02 million) for the first quarter (Q1) of 2025, ending March 31. This reflects a 3% year-over-year (YoY) decline. Despite the drop in revenue, the group achieved an improved gross margin of 57.4%, though its adjusted operating result fell to €8.7 million.
Both the Lindex and Stockmann divisions experienced reduced revenue due to weakened consumer confidence and ongoing instability in the fashion market, the company stated in a release.
The Lindex division generated €126.3 million in revenue, marking a 3.3% YoY decrease. Its adjusted operating result dropped to €0.3 million, primarily attributed to reduced sales and increased operational costs.
In the Stockmann division, revenue fell by 3.9% YoY to €59.8 million, largely due to declining sales in the fashion category. However, its adjusted operating result showed improvement, rising to negative €7.3 million, a result of effective cost-saving measures.
During Q1 2025, the Stockmann division bolstered its offerings by forming new concession partnerships and introducing exclusive products, services, and experiences to diversify its core portfolio. Meanwhile, Lindex faced temporary delays in supply chains but continued efforts to improve product availability through the development of its new omnichannel distribution center.
The group’s overall operating result declined to €9.5 million, while its net result fell to €20.2 million. Basic earnings per share (EPS) stood at negative €0.13, with diluted EPS at negative €0.12.
CEO Susanne Ehnbage emphasized the group’s strides in advancing strategic initiatives aimed at driving growth and value creation. “In the Lindex division, we have made significant progress with the extensive ramp-up of our new omnichannel distribution center, a critical step toward achieving our long-term growth aspirations and modernizing our logistics operations,” she said.
Ehnbage also highlighted the digital advancements within the Lindex division, focusing on customer-facing enhancements and boosting internal capabilities. Additionally, the number of active customers rose across both divisions, and Lindex expanded its international footprint by opening a new Lindex Kids store in London.
Looking ahead to the full year 2025, Lindex Group forecasts revenue growth of 0-4%, with an adjusted operating result expected to range between €70−90 million (~$74.9−$96.3 million). However, foreign exchange rate fluctuations, geopolitical tensions, and uncertainties in the global trade landscape pose potential risks to economic recovery, particularly in the group’s main markets during the first half of the year.
