What: Lindex owner Stockmann Group had a positive first quarter with clearly improved results across both divisions.

Why is it important: The company’s group revenue reached EUR196.1 million in the period to the end of March, up 27.1% at comparable currency rates, and the gross margin increased to 57.8% from 56.3%.

Operating profit swung to earnings of EUR9.8 million from a loss of EUR27.6 million a year ago, an improvement compared to the loss of EUR21.1 million in the previous year.

Lindex generated its strongest first-quarter sales and operating profit ever, due to increased sales in all channels and business areas. Sales in physical stores increased by 47.5% year-on-year, while digital sales, including both online and third-party sales, saw 8.2% growth.

And the Stockmann division achieved outstanding results, improving its adjusted operating result by EUR4.8 million to a loss of EUR7.3 million. The company stated that Q1 is usually negative for both divisions due to seasonal variation.

The division’s revenue grew by 9.2%. Sales in its stores increased because of higher visitor volumes and changed the balance between the sales channels. The stores generated 87.8% of its sales compared to 78.8% a year ago and the online store 12.2% compared to 21.2% of sales in Q1 last year.

Stockmann’s improving results, Lindex’s best-ever Q1 sales