Lindex Group: Swedish clothing market performed poorly in May

Source: Svensk Handel *Inderes’ estimate

The May figures for the Swedish clothing market were published this morning. According to Svensk Handel, sales were down by as much as 8% from last year. The organization attributes the poor trend to cooler weather than in the comparison period and the calendar effect. Last May, sales increased by almost 5%, while the market fell by almost 6% in June 2024. Therefore, there is potential for much better progress in June. However, May's figures represent the weakest monthly movement since the COVID era. With a weak May, the market for the year as a whole is around the level of the comparison period.  

Sweden accounts for more than half of the Lindex chain’s sales

Sweden is Lindex's largest market and accounts for more than half of the sales of the Lindex chain (but not the whole group which is also called Lindex). Our Q2'25 revenue forecast for the Lindex segment is roughly flat year-on-year in local currencies. The market development for April–May was weaker than expected, whereas the comparison figure for June is clearly easier. There is some slight downward pressure on our forecasts. The development of SEK and NOK, which together account for around 70% of the Lindex segment’s sales, also affects the company’s figures. In our forecasts, the currency effect will turn positive in Q2’25 for the first time in a long time, driven by the strengthening of the Swedish krona. For the Group as a whole, Lindex has guided for 0-4% growth in local currencies this year.