Stockmann Group, the parent company of Lindex, has reported positive results for the first quarter of the year, indicating a strong start to 2022. Both divisions within the company showed improved performance, contributing to the overall growth. Group revenue reached €196.1 million, representing a significant 27.1% increase at comparable currency rates. Additionally, the gross margin showed improvement, rising to 57.8% from 56.3%.
Lindex, in particular, experienced a highly successful first quarter. The adjusted operating profit for Lindex improved by €13.1 million, reaching €5.5 million. This marks the highest Q1 sales and operating profit ever achieved by Lindex, driven by increased sales through various channels and business areas. Physical store sales witnessed an impressive year-on-year increase of 47.5%, while digital sales, including online and third-party sales, grew by 8.2%.
Stockmann’s division also delivered a commendable result, with an improved adjusted operating profit of €4.8 million, resulting in a loss of €7.3 million. The first quarter is typically challenging for both divisions due to seasonal factors. However, the division experienced a 9.2% growth in revenue, attributed to increased visitor volumes in stores and a shift in sales channels. Physical stores accounted for 87.8% of sales, compared to 78.8% in the previous year, while the online store accounted for 12.2%, down from 21.2% in Q1 of the previous year.
Looking ahead, Stockmann expects further revenue growth throughout the year and anticipates a clearly positive adjusted operating result. However, the company acknowledges the potential challenges posed by geopolitical instability, high inflation, supply chain issues, international logistics, and the ongoing impact of COVID-19 restrictions. To overcome these challenges, both divisions will need to display adaptability and flexibility in order to meet future demands.
The improving results of Stockmann Group and the record-breaking Q1 sales of Lindex demonstrate the company’s resilience and ability to thrive in changing market conditions. With a positive outlook for the future, Stockmann is well-prepared to continue its growth and success in the fashion retail industry.
Useful links:
1. Stockmann Group Official Website
2. Lindex Official Website
