Stockmann Group, the parent company of Lindex, has announced improved financial results for the first quarter of the year. The group’s revenue reached €196.1 million, showing a significant increase of 27.1% in comparable currency rates. Additionally, the gross margin also saw an improvement, rising to 57.8% from 56.3%. Lindex, in particular, had a particularly strong first quarter, achieving its best-ever sales and operating profit for Q1.

Lindex’s adjusted operating result improved by €13.1 million, reaching €5.5 million. This remarkable performance was driven by increased sales across all channels and business areas. Year-on-year, physical store sales increased by 47.5%, while digital sales grew by 8.2%. These impressive figures indicate the success of Lindex’s strategies in attracting and retaining customers in both physical and online spaces.

Meanwhile, Stockmann’s division also showed positive results, although it still experienced a loss. The adjusted operating result improved by €4.8 million to a loss of €7.3 million. It is important to note that Q1 is typically a negative period for both divisions due to seasonal variation. However, the revenue for Stockmann’s division grew by 9.2%, indicating a positive trajectory.

The balance between sales channels shifted during this period, with physical stores accounting for 87.8% of sales compared to 78.8% the previous year. Conversely, online sales contributed 12.2% compared to 21.2% in the previous year’s Q1. This shift highlights the growing importance of brick-and-mortar stores for Stockmann while also acknowledging the significance of the online channel.

The company specifically highlighted the success of its Crazy Days campaign, which outperformed the previous year’s campaign. This indicates that Stockmann’s marketing strategies and promotions resonated well with consumers and helped drive sales during the period.

Despite the positive results and promising outlook, Stockmann remains aware of the challenges it faces. Geopolitical instability, high inflation, supply chain issues, international logistics, and ongoing COVID-19 restrictions all pose potential obstacles. To address these challenges, the company emphasizes the need for agility and adaptability in both divisions to navigate the uncertain business landscape.

In conclusion, Stockmann’s first-quarter results demonstrate the company’s resilience and ability to thrive in a challenging retail environment. With Lindex’s record-breaking sales and Stockmann’s positive growth, the company is well-positioned to capitalize on future opportunities. By focusing on performance improvement and flexibility, Stockmann is poised to navigate uncertainties and continue its upward trajectory in the retail industry.

Useful links:
1. Stockmann Group Interim Report
2. Stockmann Group Investor Relations