Lindex’s operating result* for January-March 2021 increased by 33 MSEK and amounted to -146 MSEK (-179 MSEK 2020). Lindex’s adjusted operating result increased by 88 MSEK and amounted to -91 MSEK (-179 MSEK 2020) The strengthened result is an effect of the fashion company’s rapid digital growth, improved margins and implemented cost saving actions.
“Despite a tough start to 2021, with continued challenges for our physical stores with periodically closures in the majority of our sales markets, restrictions and reduced traffic, Lindex improves its adjusted operating result for the first quarter compared to both 2019 and 2020. The positive development shows that our actions and efforts have had a successful effect and where all employees’ great flexibility, contribution and commitment have been key,” says CEO Susanne Ehnbåge.
Lindex's total sales for the first quarter decreased by 1.8 percent in local currencies and by 5.8 percent in SEK. The total sales in March, however, increased significantly by 43.4 percent in local currencies and by 38.0 percent in SEK. The fashion company continued its strong growth online with a sales increase of 193 percent during the quarter. In total, the digital sales amounted to 28.7 percent of Lindex's sales during the first quarter, compared to 9.2 percent the same period previous year.
Lindex shows a better sales growth than the market for the first quarter in all the Nordic sales countries.
“We continued to gain market shares in all our Nordic sales markets and our highly appreciated and more sustainable kids’ assortment was Lindex’s strongest business area, with a sales increase of 13 percent during the quarter. Our online sales almost tripled during the first quarter and more than quadrupled compared to the same period 2019, which is a fantastic development. The digital development has really been boosted and we continue our strategic investments forward to give our customers an even more inspiring shopping experience”, says Susanne Ehnbåge.
Developing new business opportunities is an important part of the fashion company's work. The partnership with the new underwear brand Closely, where Lindex is the main owner, is an example.
“We develop our offer with the customer’s needs in focus while we continue to work and explore more sustainable and innovative business models. Our partnership with Closely is an exciting example of how we create new business opportunities based on Lindex's strengths. In March, Closely launched its new bra range that exceeded the expectations and the total sales tripled in one month. When I look ahead, I’m humbled that it’s a continued uncertain time, but I’m convinced that we as Lindex, with our flexibility, speed and the amazing commitment of all employees, will continue to stand strong and well positioned for the future,” says Susanne Ehnbåge.
*Lindex's operating result and adjusted operating result are reported excluding IFRS16 leasing agreements.