Lindex driving growth for Stockmann

Lindex has been able to bounce back from the pandemic with a solid growth of fourth straight quarter. During this time Lindex has grabbed ever bigger share of revenue of the overall Stockmann Group. Lindex’s share of revenue has jumped from 59% before the pandemic (Q1/2020) to 68% currently.

Encouragingly Lindex has also been able to consistently to improve its gross margins.

Department stores are also recovering from the depths of the pandemic lows. Q1/2022 was a fourth straight growth quarter. However, there is a big difference between Stockmann department stores and Lindex in growth.

While Lindex has only once during these four quarters dipped below 20% YoY growth, the department stores have only once been able to grow above 10%.

The department store recovery should not yet be deemed a success. The low growth numbers of the department stores are also coming on top of dismal comparison numbers from the previous year. Stockmann is still trading 10% below pre-pandemic Q1/2020.

The biggest disappointment in the Stockmann department stores is the online performance.

Online represents a mere 12% of overall department store sales. In a category where majority of big international players report at least 30+% and some 60+% of revenue coming from online.

During the Q1/2022 the revenue from online in Stockmann department stores fell by a whopping -43,7%! That is a big drop despite it coming compared to a pandemic Q1/2021.

Online is a huge missed growth opportunity for Stockmann.