Swedish retailer Lindex Group has reported a revenue of €444.4 million (approximately $483.4 million) in the first half of fiscal 2024 (H1 FY24), a 1.3 per cent decline from the previous year’s €450.4 million. When measured in local currencies, the revenue decrease was 2 per cent. The Lindex division saw its revenue fall to €300.4 million from €302.7 million, marking a 1.8 per cent decrease in local currencies. The Stockmann division’s revenue dropped to €144.1 million from €147.8 million.

The group maintained a stable gross margin at 58.4 per cent, almost level with last year’s 58.5 per cent. However, the adjusted operating result declined to €23 million from €29.2 million. Specifically, the Lindex division’s adjusted operating result decreased to €35 million from €41.8 million, while the Stockmann division showed an improvement in its adjusted operating result, narrowing its loss to minus €10 million from minus €10.5 million.

Lindex’s operating result fell significantly to €12.7 million from €27.3 million. Consequently, the net result declined sharply to minus €8.4 million, compared to €33.3 million in the previous year. Earnings per share also dropped to minus €0.05 from €0.21, the company said in a media release.

In Q2 FY24, Lindex Group's revenue remained relatively stable at €251.6 million, a slight decrease of 0.2 per cent from €252 million in the same period last year, and a 1.0 per cent decrease in local currencies. The Lindex division experienced a decline in revenue to €169.7 million from €176.2 million, representing a 4.9 per cent decrease in local currencies. Conversely, the Stockmann division’s revenue increased to €81.9 million from €75.8 million.

The group's gross margin remained nearly unchanged at 60 per cent, compared to 60.1 per cent in the same quarter last year. However, the adjusted operating result for the group declined to €29.5 million from €31.6 million. The Lindex division’s adjusted operating result dropped to €30.8 million from €36.2 million, while the Stockmann division’s adjusted operating result improved, reducing its loss to minus €0.6 million from minus €3.5 million.

The operating result for Q2 FY24 declined to €20.3 million from €30.2 million, primarily due to settling disputes related to the restructuring programme. The net result also fell to €7 million from €13.8 million. Consequently, earnings per share decreased to €0.04 from €0.09.

“At Lindex Group, we are continuing our strategic journey to accelerate growth and value creation. While focusing on delivering our financial targets, we are doing our utmost to secure that Lindex Group is fit for capturing the future business opportunities. We continue to deepen our understanding of the customers, enhance our offering, develop new sales channels, invest in digitalisation, streamlining processes and proceeding in our sustainability agenda—all in line with our divisions’ strategies,” said CEO Susanne Ehnbage.

Fibre2Fashion News Desk (DP)