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Lindex Group PLC (FRA:SOMB) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Q4 Revenue: EUR273.7 million, declined by 0.3%, increased by 0.8% in local currencies.

  • Lindex Division Revenue: Increased by 2.3% in local currencies.

  • Stockmann Division Revenue: Decreased by 1.4%.

  • Q4 Adjusted Operating Result: Increased to EUR36.1 million.

  • Full Year 2024 Revenue: EUR940.1 million, declined by 1.2%.

  • Full Year Adjusted Operating Result: Decreased to EUR74.9 million.

  • Gross Margin: Improved to 58.1% in Q4.

  • Digital Sales Growth: Lindex division digital sales increased by 14.9% in Q4.

  • Number of Lindex Stores: Increased to 442, with 11 openings and 8 closures in 2024.

  • Net Result: Improved to EUR19.8 million in Q4.

  • Earnings Per Share: Increased to EUR0.12.

  • Cash and Cash Equivalents: EUR114.7 million at the end of December 2024.

  • Equity Ratio: Improved to EUR61.9 million excluding IFRS items.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Lindex Group PLC (FRA:SOMB) improved its adjusted operating profit significantly in the Lindex division despite a challenging market environment.

  • The Stockmann division showed continuous profit improvement due to successful cost efficiency measures.

  • The launch of a new highly automated omnichannel distribution center in November marked a significant milestone for future growth.

  • Digital sales for the Lindex division increased by 14.9% during the fourth quarter, with digital channels now accounting for 21.1% of total revenue.

  • The company has made progress in its sustainability initiatives, including transitioning to regenerative cotton and increasing recycled materials.

Negative Points

  • Lindex Group PLC (FRA:SOMB) experienced a revenue decline of 0.3% in the fourth quarter, although it increased by 0.8% in local currencies.

  • The Stockmann division's revenue decreased by 1.4% due to lower sales in the fashion category.

  • The group's adjusted operating result decreased to EUR74.9 million for the full year, mainly due to lower gross profit and continued investments.

  • The strategic assessment to crystallize shareholder value is ongoing and has been delayed, with completion expected by June 2025.

  • The company faces a disputed claim related to its restructuring program, which remains unresolved.

Q & A Highlights

Q: Lindex's sales developed stronger towards the end of Q4. Did this trend continue into 2025? A: We had strong sales development towards the end of Q4, but we are not sharing revenue development for the start of Q1 yet. We will revisit this topic in April. - Susanne Ehnbge, CEO