What: Lindex Group, formerly known as Stockmann, reported mixed financial results for the first quarter with growth in its Lindex division overshadowed by challenges in the Stockmann department stores.

Why it is important: The contrasting performances of the two divisions highlight the ongoing struggles and strategic shifts within retail companies facing high freight costs and challenging economic conditions. The outcome of these results is crucial as it affects the company's strategies and the overall stability of jobs and investor confidence.

Lindex Group has seen a rise in revenue from its Lindex division by 2.7% in local currencies during the first quarter, totaling EUR 130.6 million. This growth occurred across all main markets, indicating robust performance despite broader retail challenges. However, the Stockmann division suffered a decline, with revenue dropping significantly from EUR 72 million to EUR 62.2 million. This decline was largely due to the rescheduling of the Crazy Days sales campaign and ongoing economic pressures such as high interest rates and inflation, which dampen consumer spending. Overall, the group's digital sales continued to grow, representing 18.8% of total revenue, up from 17.8% the previous year. Despite these mixed results, Lindex Group's leadership remains committed to strategic adjustments, particularly exploring options for the Stockmann department stores to stabilize and improve the division's performance within the current tough market conditions.

Lindex continues to grow but Stockmann is still struggling