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Analyst Comment

Stockmann: Swedish clothing market down 3 % in September

By Rauli JuvaAnalyst
Lindex Group

Source: Svensk Handel *Inderes’ estimate

Translation: Original comment published in Finnish on 10/10/2023 at 7:21 am EEST.


The September figures for the Swedish clothing market were published this morning. Comparison figures to 2019 levels are no longer published, but the comparison figure for August 2022 (vs. 2019) was 3%, i.e., sales were at pre-pandemic levels. Sales were slowed by exceptionally warm weather. During January-September, the market has grown by 2.5% and Q3 growth was just over 3%.

Sweden accounts for more than half of Lindex’s sales

Sweden is Lindex's largest market and generates more than half of Lindex's sales. Our estimate for Lindex's Q3'23 revenue expects a 1% decline, still depressed by the much weaker SEK and NOK, which together account for around 70% of Lindex's sales. In our estimates, the negative impact of exchange rates is around 6% and therefore our growth expectation in local currencies is around 5%. Against this background, the development in July-September is weaker than we expected. Our Q3 revenue estimates are therefore under slight downward pressure. However, we do not think this is significant for the year as a whole.

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Lindex Group operates in the retail sector. The Group manages a number of stores in major shopping centres and large commercial premises located throughout the Nordic market. The Group is a retailer of several brands and the range consists of clothing, shoes and related accessories. The company has its headquarters in Helsinki.

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