Lindex profits surge in second quarter as it welcomes new CEO
today Aug 20, 2018
Lindex’s new CEO Susanne Ehnbåge has announced a 56% increase in profits for the second quarter of the year, driven by a series of cost reduction initiatives and strong sales.
Ehnbåge, who joined the Scandinavian brand this month, said the second quarter saw Lindex increase its operating profit by 56% to 19.6 million euros. Higher gross margin, a sales increase and a successful efficiency programme contributed to the boost.
“During the year, Lindex has implemented changes and efforts to strengthen its competitiveness and increase profitability. This is now showing a positive effect, and the strong result reflects Lindex good growth,” she explained.
Sales grew across all markets, as the brand’s spring and summer collection was boosted by a heat wave sweeping over parts of Europe during July and August. In total, sales increased by 5.4% in local currencies, and by 4.5% in comparable sales. E-commerce also played an important role, with online sales up 66%.
“We have strengthened our commercial fashion offer, and the good sales performance in all Lindex markets is proof of this. Our online sales increased by a full 66 per cent in the second quarter, and our digital efforts are important for providing our customers an even more inspiring shopping experience. Now we face an exciting autumn, and I have a very positive outlook on everything ahead of us,” Ehnbåge continued.
The Swedish brand, owned by Stockmann, named Susanne Ehnbåge as its new CEO in January, and said she would take over from interim CEO Elisabeth Peregi in August.
Ehnbåge, who doesn’t have previous experience in the fashion sector, was described by Lindex as a “skilful leader” with strong turnaround competence. This expertise will be an important part of her leadership as she attempts to drive sales and restore the company’s financial health.
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