Lindex’s result and sales development for first quarter of 2020

Lindex increased its total sales during January and February by 7.3 per cent in SEK and by 7.0 per cent in local currencies. Due to the corona virus and its effects, Lindex decreased its sales during March by 41.0 per cent in SEK and 41.3 per cent in local currencies, leading to a sales reduction for the first quarter by 12.0 per cent in SEK and 10.7 per cent in local currencies.

’We started the year with strong sales growth and continued increased profitability, but due to the extraordinary global corona situation our circumstances have changed. For some of our markets it means that we have had to close our stores in line with the government’s decisions, which is challenging for our business. To meet the effects and the decreased demand in our physical stores, we have taking fast actions and implemented a major program of actions and cost savings as well as increased our focus on meeting the sales growth online’ says CEO Susanne Ehnbåge.

Lindex’s sales online increased by 36.6 per cent for the first quarter. During 13-31 March, the sales online increased significantly with 156 per cent. The fashion company’s e-commerce share of the total sales was 9.2 per cent during the quarter, compared to 5.8 per cent during the same period in previous year. Lindex shows a better sales growth than the market during January and February in all Nordic sales countries, as well as less decrease in sales than the market during March.

Lindex’s operating result improved during January and February. For the first quarter, the operating result amounted to -179.2 MSEK (-131.5 MSEK 2019). The decrease in result for the quarter is an effect of the sales reduction in March.

‘For the past two years we have had a good and solid result development at Lindex, up until the corona situation paralysed the industry. With our implemented actions we have managed to mitigate the consequences induced by corona. We continue to develop our competitive and more sustainable offer, with the customer’s needs in focus. Looking ahead, consumption patterns and customer behaviour will change at an even faster rate. I am convinced that once we have made it through the current situation, with our flexibility, more digital approaches and the amazing commitment of all employees, Lindex will stand stronger than before’ says Susanne Ehnbåge.