Lindex’s result and sales development for the second quarter of 2020
Today, the fashion company presents its result and sales for the second quarter. The coronavirus pandemic and its effects had a significant impact on the sales development. Nevertheless, Lindex is reporting a result that stand up well in the current circumstances.
Lindex operating result for the second quarter amounted to 167 MSEK (197 MSEK 2019). The decline was due to reduced sales in the second quarter as stores were closed in the majority of the fashion company’s sales markets.
“It has been a continued challenging period with stores closed in the majority of our 18 sales markets during the spring. However, fast implemented and effective cost saving actions, as well as strong digital growth, enabled us to lessen the impact. We are reporting a result for the second quarter that stand up well compared to last year’s very strong result, particularly in light of the current circumstances”, says CEO Susanne Ehnbåge.
Lindex total sales in local currencies for June reached the same level as the previous year but decreased by 2 per cent in SEK. Sales during April and May decreased by 28 per cent in local currencies and by 30 per cent in SEK, leading to a sales reduction for the second quarter by 18 per cent in local currencies and 20 per cent in SEK.
The fashion company continued its strong growth online, with an increase of 102 per cent in the second quarter. Lindex e-commerce share of the total sales was 16.2 per cent during the quarter, compared to 6.6 per cent during the same period last year.
Lindex shows a better sales growth than the market during the first half of the year for all Nordic sales countries.
“To support our strong online growth and the changes in customer behaviour, we have been flexible and realigned our business quickly. During the quarter, our e-commerce has doubled and even tripled in many of our sales countries. It’s also gratifying to see that our physical stores are starting to pick up again, with sales in June at the same level as previous year, despite the fact that we had closed stores in some of our markets. To position ourselves and remain strong going forward, we are continuing to develop our strong customer offer, while working further on our strategic investments regarding digital development, our sales channels and sustainability”, says Susanne Ehnbåge.
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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 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