Lindex's operating result for the third quarter increased by 88 MSEK and amounted to 211 MSEK, an increase of 72 percent compared with the same period last year (123 MSEK 2019). The company's strong online sales growth, as well as its fast and effective cost reduction actions, contributed to the strong result development.
"With clear goals, effective cost saving actions and flexible solutions to meet the strong digital growth, we have together succeeded to turning the trend around successfully. We can report a greatly improved result for the third quarter and we even increased our result for the first nine months of the year. Thanks to our online growth, the total sales during the quarter are almost on par with the same period last year, which is proof of our quick adjustment to meet the customer needs. Our offering, together with our implemented actions and the dedicated efforts of all our employees during the continuing challenging period, have been decisive factors for our positive development", says CEO Susanne Ehnbåge.
Lindex's total sales for the third quarter declined by 1 percent in local currencies, and by 3.2 percent in SEK. The fashion company shows a better sales growth than the market during the quarter for all the Nordic sales countries. Lindex continued its strong growth online with a sales increase of 104 percent in Q3. The company's e-commerce doubled and even tripled in certain markets, and sales with external online partners more than doubled during the quarter. In total, the digital sales amounted to 13.2 percent of Lindex's sales during the quarter, compared with 6.4 percent for the same period last year.
The global corona situation has presented huge challenges for the industry. In order to future-proof a resilient company with a lower cost structure, Lindex initiated a cost reduction programme at the end of August aimed at saving 150 MSEK.
"Continuing to adapt our business to new customer behaviour is an important part of our cost reduction programme, which we anticipate will reach its full effect in 2021. We are intensifying integration of our sales channels, and optimising our store portfolio is another important part. The locations of our stores and rental costs are critical areas in which the new prevailing circumstances have changed the preconditions. Our current store network gives us the flexibility to renegotiate and adapt more than a third of our stores each year", explains Susanne Ehnbåge.
To future-proof the business, the fashion company's strong investments in the digital development, innovation and sustainability continue.
"We continue to develop our competitive and more sustainable offer with the customer’s needs in focus. The future will bring continued challenges, but I am sure that with our fantastic assortment, in combination with everyone's great flexibility, commitment and contribution, we will also face the time ahead of us in the best possible way", concludes Susanne Ehnbåge.