Lindex initiates a cost reduction program to future-proof the business
Lindex started the year with a strong sales growth and increased profitability but the situation changed due to the global corona pandemic. To meet the effects and reduce the consequences Lindex implemented fast and effective actions. Now Lindex initiates further actions to future-proof a resilient business.
“During spring and summer, we have really shown that we can challenge ourselves. We have succeeded in adjusting quickly to meet the customer’s expectations and we have both learned and achieved a lot in a short time. To secure our continued business and a resilient Lindex, also for future challenges, we are now implementing additional actions and reducing our costs”, says CEO Susanne Ehnbåge.
In the interim report for the second quarter Lindex presented that the fashion company continues to grow digitally and is focusing on meeting the online sales growth. Due to the global corona situation Lindex decreased its total sales for the second quarter with 18 percent in local currencies. Sales in June were on par with previous year. Although the development turned in the end of the second quarter the sales is not in line with the planned level and the fashion company is now initiating a cost saving program with a reduction of 150 MSEK.
“We need to adapt our organisation to the new current situation where we are more agile, flexible and innovative. For Lindex’s head office we are reviewing a new, adapted organisation which also mean employee reductions with approximately 5 percent. For our sales countries we are working on how we can create more efficient workflows to facilitate the daily work and we are reviewing hours in our stores with the customer in focus. Another important part in our cost reduction program is our ongoing work on reviewing our rental agreements and optimising our store portfolio. At the same time, strong investments in the digital development, our sales channels, sustainability and innovation continue”, says Susanne Ehnbåge.
For more information, please contact:
Kristina Hermansson
Corporate Communications Manager
Phone: 46 (0)31 739 50 70
E-mail: press@lindex.com
Lindex is one of Europe's leading fashion company, with approximately 460 stores in 18 markets and sales online. Lindex offers inspiring and affordable fashion for the fashion interested and conscious woman. The assortment includes several different concepts within women's wear, kids' wear, lingerie and cosmetics. Lindex is growing, both in own channels, franchise and together with global fashion platforms. Lindex sustainability promise is to make a difference for future generations by empowering women, respecting the planet and ensuring human rights. Lindex is a fully owned subsidiary of STOCKMANN plc. More information is available at www.lindex.com
