Lindex Group - Interim report (Q1 and Q3)

Lindex Group's Interim Report 1 January - 31 March 2024

Lindex Group had underlying revenue growth in the first quarter, but the result
was impacted by the timing of Crazy Days and freight costs

LINDEX GROUP plc, Interim report 26.4.2024 at 8.30 EEST

Lindex Group's Interim Report 1 January - 31 March 2024

Lindex Group had underlying revenue growth in the first quarter, but the result
was impacted by the timing of Crazy Days and freight costs

January-March 2024:

  · On 21 March 2024, the Annual General Meeting made the decision to change the
name of the Group's parent company from Stockmann Oyj Abp to Lindex Group Oyj.
  · Lindex Group's revenue was EUR 192.8 (198.5) million. The revenue decreased
by -2.8%, and in local currencies by -3.2%. The Group's underlying revenue,
meaning the revenue excluding the impact of the Crazy Days timing, increased.
- The Lindex division's revenue increased to EUR 130.6 (126.5) million. In local
currencies, the revenue increased by 2.7% and sales grew in all main markets.
- The Stockmann division's revenue decreased to EUR 62.2 (72.0) million, mainly
due to the timing of the Crazy Days campaign.
  · The Group's gross margin was level with the comparison period at 56.3%
(56.4).
  · The Group's adjusted operating result declined to EUR -6.5 (-2.4) million,
where currency rates didn't have any material impact.
- The Lindex division's adjusted operating result declined to EUR 4.2 (5.6)
million, mainly explained by higher freight costs due to unexpected logistic
challenges in the Red Sea.
- The Stockmann division's adjusted operating result decreased to EUR -9.4 (
-7.0) million, due to the timing of the Crazy Days campaign. In 2023, Crazy Days
was partly ongoing in March, while in 2024, the campaign was held at the
beginning of the second quarter in April.
  · Operating result was EUR -7.6 (-2.9) million.
  · Net result declined to EUR -15.4 (19.5) million mainly due to the positive
impact of a tax decision for Stockmann Sverige AB in the comparison period.
  · Earnings per share declined to EUR -0.10 (0.13).

Guidance for 2024 (unchanged):
In 2024, Lindex Group expects its revenue to increase by 1-3% in local
currencies compared to 2023. The Group's adjusted operating result is estimated
to be EUR 70-90 million. Foreign exchange rate fluctuations may have a
significant effect on the adjusted operating result.

Market outlook for 2024:
The market environment in 2024 is expected to remain challenging. The
macroeconomic situation in Europe remains uncertain due to the continuing
geopolitical instability. High interest rates and inflation are holding back
economic growth, and the retail sector may be affected by lower consumer demand.
Forecasts are indicating a stagnant GDP (Gross Domestic Product) development or
slow growth in the company's key markets. Inflation is forecasted to continue
declining from high to targeted levels. The situation may vary between the
Group's markets. Disruptions in supply chains and international logistics during
the year cannot be excluded either.

CEO Susanne Ehnbåge:
During the first quarter, we progressed well with strategy implementation in
both divisions. On 21 March 2024, our Annual General Meeting made the decision
to change the parent company's name from Stockmann plc to Lindex Group plc. The
name change reflects the Lindex division's strengthened role in the Group's
business and emphasises that the Group has moved on to a new strategic phase
where it aims to further grow shareholder value.

The parent company's name change was part of a strategic assessment aiming to
crystallise shareholder value by refocusing the Group's business on Lindex. The
Group continues to investigate strategic alternatives for the Stockmann
department stores business, and we expect to finalise the assessment in 2024. We
also aim to end our restructuring process as soon as possible. After the review
period, we reached a settlement agreement with Nordika II SHQ Oy, which means
that there is only one disputed claim left.

In January-March, the market environment remained challenging, with modest or
negative market development in Lindex Group's key markets. However, the Group's
underlying revenue increased, excluding the negative impact of the timing of the
Crazy Days campaign. In addition, the Lindex division outperformed the market
once again and continues its growth journey.

Lindex Group's adjusted operating result declined to EUR -6.5 (-2.4) million.
The key reasons for the decline were the timing of the Stockmann division's
Crazy Days campaign as well as increased  freight costs due to unexpected
logistic challenges in the Red Sea affecting the Lindex division. The Lindex
division increased revenue and strategically important share of digital revenue
and continued to expand market presence with partnerships. The Stockmann
division performed well, both in terms of revenue and adjusted operating result,
when excluding the impacts of the timing of Crazy Days. The Stockmann division's
Crazy Days campaign was held after the review period, and it performed better
than previous year. Furthermore, we have a solid action plan to improve
profitability in the coming quarters.

Going forward, Lindex Group has a clear target: sustainable and profitable
growth. I am happy to see our team's dedication to implementing the strategy and
their commitment to our financial and sustainability goals. The Group's improved
financial position serves as a solid foundation for further development and
investments in areas such as process efficiency and digitalisation in order to
enable the planned growth. The construction of Lindex's new EUR 110 million
omnichannel distribution centre is proceeding well, and we target it to be
operational in the Autumn 2024.

I am personally impressed by the hard work our team members have invested in
implementing our divisions' strategies. I am confident that the decisions that
have been made are supporting our journey towards an even stronger Lindex Group.

KEY FIGURES

+---------------------------------------------+-----+-----+-----+
|                                             |1-3  |1-3  |1-12 |
|                                             |2024 |2023 |2023 |
+---------------------------------------------+-----+-----+-----+
|Revenue, EUR mill.                           |192.8|198.5|951.7|
+---------------------------------------------+-----+-----+-----+
|Revenue growth, %                            |-2.8 |1.2  |-3.1 |
+---------------------------------------------+-----+-----+-----+
|Local currency growth, %                     |-3.2 |5.5  |1.6  |
+---------------------------------------------+-----+-----+-----+
|Digital share of revenue, %                  |18.8 |17.8 |16.8 |
+---------------------------------------------+-----+-----+-----+
|Digital revenue growth in local currencies, %|2.4  |-3.3 |2.7  |
+---------------------------------------------+-----+-----+-----+
|Gross profit, EUR mill.                      |108.5|112.0|554.2|
+---------------------------------------------+-----+-----+-----+
|Gross margin, %                              |56.3 |56.4 |58.2 |
+---------------------------------------------+-----+-----+-----+
|Adjusted operating result, EUR mill.         |-6.5 |-2.4 |80.0 |
+---------------------------------------------+-----+-----+-----+
|Adjusted operating margin, %                 |-3.3 |-1.2 |8.4  |
+---------------------------------------------+-----+-----+-----+
|Operating result, EUR mill.                  |-7.6 |-2.9 |76.5 |
+---------------------------------------------+-----+-----+-----+
|Operating margin, %                          |-3.9 |-1.4 |8.0  |
+---------------------------------------------+-----+-----+-----+
|Net result for the period, EUR mill. *)      |-15.4|19.5 |51.7 |
+---------------------------------------------+-----+-----+-----+
|Net debt excluding IFRS 16 items, EUR mill.  |-10.6|-35.7|-65.6|
+---------------------------------------------+-----+-----+-----+
|Equity ratio, %                              |28.2 |27.9 |29.9 |
+---------------------------------------------+-----+-----+-----+
|Equity ratio (excluding IFRS 16 items), %    |60.5 |58.7 |60.5 |
+---------------------------------------------+-----+-----+-----+
|Stock-in-trade (inventory), EUR mill.        |179.7|186.2|162.9|
+---------------------------------------------+-----+-----+-----+
|Operating free cash flow, EUR mill.          |-39.2|-40.5|70.8 |
+---------------------------------------------+-----+-----+-----+
|Capital expenditure, EUR mill.               |6.8  |13.6 |65.1 |
+---------------------------------------------+-----+-----+-----+
|EPS, basic, EUR **)                          |-0.10|0.13 |0.33 |
+---------------------------------------------+-----+-----+-----+
|Number of employees, average                 |5 947|5 997|5 801|
+---------------------------------------------+-----+-----+-----+

*) The net result for the period declined due to lower operating result and
increased tax expenses. In the comparison period, the tax expenses were impacted
by a positive tax decision for Stockmann Sverige AB.
**) Earnings per share declined to EUR -0.10 (0.13) due to the lower net result
as explained above and an increased number of shares compared to the previous
period.

ITEMS AFFECTING COMPARABILITY (IAC)

+-------------------------------------+----+----+-----+
|EUR million                          |1-3/|1-3/|1-12/|
|                                     |2024|2023|2023 |
+-------------------------------------+----+----+-----+
|Operating result                     |-7.6|-2.9|76.5 |
+-------------------------------------+----+----+-----+
|Adjustments to operating result      |    |    |     |
+-------------------------------------+----+----+-----+
|Costs related to restructuring       |2.8 |0.5 |2.6  |
|programme and other disputes         |    |    |     |
+-------------------------------------+----+----+-----+
|Costs related to strategic and       |2.8 |    |2.3  |
|organisational development           |    |    |     |
+-------------------------------------+----+----+-----+
|Insurance claim settlement for losses|-4.5|    |     |
|related to COVID-19                  |    |    |     |
+-------------------------------------+----+----+-----+
|Loss on disposal of subsidiary shares|    |    |0.6  |
+-------------------------------------+----+----+-----+
|Other operating income from lease    |    |    |-2.1 |
|modifications of sale-and-leaseback  |    |    |     |
|items                                |    |    |     |
+-------------------------------------+----+----+-----+
|Adjusted operating result            |-6.5|-2.4|80.0 |
+-------------------------------------+----+----+-----+

STRATEGY

Lindex Group's two divisions, Lindex and Stockmann, have their own strategies
targeting sustainable and profitable growth. The Lindex division's strategy
builds on Lindex's purpose of empowering and inspiring women everywhere. The
division's three strategic must-win areas are to accelerate growth, transform
into a sustainable business, and decouple cost from growth. The Stockmann
division's customer-centric strategy builds on Stockmann's purpose of being a
marketplace for a good life. The division's three strategic must-win areas are
to elevate offering, grow and leverage the loyal customer base, and ensure a
seamless omnichannel experience. Additionally, the Group has a clear focus on
operational efficiency.

Both divisions are committed to Lindex Group's science-based climate target to
reduce greenhouse gas emissions from its own operations and its value chain by
42% by 2030 compared to 2022. Lindex Group expects the Science Based Targets
initiative (SBTi) to validate its climate target during 2024.

In September 2023, Lindex Group initiated a strategic assessment aiming to
crystallise shareholder value by refocusing the Group's business on Lindex. As
part of the assessment, the Group changed its parent company name from Stockmann
plc to Lindex Group plc, as decided by the Annual General Meeting on 21 March
2024. The Group continues to investigate strategic alternatives for the
Stockmann department stores business. Lindex Group expects the strategic
assessment to be finalised during 2024 and will provide an update on the
assessment if, and when, appropriate.

Interim Report
This company announcement is a summary of the Lindex Group's Interim Report 1
January - 31 March 2024 and includes the most relevant information of the
report. The complete report is attached to this release as a pdf file and is
also available on the company's website lindex-group.com (https://www.lindex
-group.com/en/).

Financial releases in 2024
Lindex Group will publish its financial reports in 2024 as follows:
- 19 July 2024, Half year Financial Report for January-June
- 25 October 2024, Interim Report for January-September

Webcast for analysts and the media
A media and analyst briefing will be held in English as a live webcast today, on
26 April 2024 at 10:00 a.m. EEST. The event can be followed via this
link (https://lindex-group.videosync.fi/2024-4-26-interimreport/register). The
recording and presentation material will be available on the company's website
after the event.

LINDEX GROUP plc

Susanne Ehnbåge
CEO

Further information:
Susanne Ehnbåge, CEO
Annelie Forsberg, CFO
Contact via Lindex Group's MediaDesk info@stockmann.com, tel. +358 50 389 0011
Marja-Leena Dahlskog, Head of Communications & IR, tel. + 35850 502 0060

Distribution:
Nasdaq Helsinki
Principal media

Lindex Group plc is an international multichannel retail group with two
divisions: Lindex and Stockmann. Lindex is a global fashion company with a
purpose to empower and inspire women everywhere. Its three strong categories
include women's and kids' wear as well as lingerie, where it is a market leader
in the Nordics. Stockmann is a premium multi-brand retailer with department
stores in Finland and the Baltics. Its purpose is to be a marketplace for a good
life. In 2023, the Lindex Group's revenue was EUR 952 million and it had some 5
800 employees. The Group's roots lie in the Stockmann company founded in 1862
and its shares are listed on the Nasdaq Helsinki Ltd. in Finland. www.lindex
-group.com (https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.
lindex
-group.com%2F&data=05%7C02%7Cchristian.goingberg%40cision.com%7C26110e9475bc4a4f3
d3308dc4a43a4c5%7C887bf9ee3c824b88bcb280d5e169b99b%7C1%7C0%7C638466901620760709%7
CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVC
I6Mn0%3D%7C0%7C%7C%7C&sdata=x2os%2FawRLWf4SlYWztP4bcxMht6BGgLlY9WlIoN8kRw%3D&rese
rved=0)

Attachments:

04258487.pdf