What: The latest Q3 figures from Stockmann, the owner of the Lindex womenswear brand, show that Lindex continues to perform strongly.

Why it is important: The strong performance of Lindex and the repositioning efforts of the Stockmann division is important as the company made considerable investments in improving digitalisation, profitability, and customer experience.

Despite a 7% decline in group revenue to EUR 226.9 million and a 1.7% fall in local currencies, Lindex managed to grow its revenue by 4.9% in local currencies. However, reported revenue for Lindex fell to EUR 162.3 million from EUR 166.9 million. In contrast, Stockmann's division saw a worse performance, with revenue falling to EUR 64.7 million from EUR 77.1 million, largely due to the timing of its promotional campaign.

The group's overall gross margin improved to 58.5% from 56.8%, but its adjusted operating profit decreased to EUR 20.6 million from EUR 22 million. Meanwhile, Lindex's adjusted operating profit increased to EUR 26.2 million from EUR 22.5 million. Stockmann expects its revenue to be in the range of EUR 940 million- EUR 1 billion for the year, with an adjusted operating profit of EUR 65 million-EUR 85 million, subject to currency fluctuations.

The company plans to focus on improving profitability and growing Lindex, while repositioning the Stockmann division towards luxury and affordable luxury. Both divisions are also investing in digitalization to enhance customer experience and cost efficiency.

Lindex continues to outperform Stockmann in latest quarter