Lindex Group’s Financial Statements Bulletin 2025, published on 6 February 2026:

Lindex Group operates in a dynamic and complex environment that exposes the company to a range of risks that may affect its financial performance, operations, and reputation. These risks arise from macroeconomic factors, seasonal variations, complex supply chains, information security threats, and increasing sustainability and compliance requirements, among others. Below is an overview of the key risks and uncertainties affecting the Group.

Macroeconomic and geopolitical situation
Global economic uncertainty and geopolitical tensions continue to influence consumer confidence and purchasing power. Inflationary pressures have eased compared to previous years but remain a factor impacting operational costs and customer behaviour. These pressures may continue to affect customer behaviour and shift demand across product categories. Additionally, macroeconomic uncertainties may influence asset valuations, and interest rate fluctuations may impact the discount rates used in impairment testing. 

Exchange rate fluctuations
Lindex Group’s revenue, earnings, and balance sheet are influenced by changes in exchange rates, particularly between the euro (the Group’s reporting currency) and other key currencies such as the Swedish krona, Norwegian krone, and U.S. dollar. Currency volatility may impact financial performance, and the Group’s limited ability to fully hedge transactional risks leaves it exposed to potential currency fluctuations. 

Seasonality and customer demand
Seasonal variations are an inherent characteristic of the retail industry and significantly impact Lindex Group’s revenue and profitability. Typically, revenue is lower in the first quarter, while the second and fourth quarters experience higher sales activity. Fashion, which accounts for approximately 80% of the Group’s revenue, is particularly sensitive to seasonal trends and weather conditions. Additionally, the timing of the Stockmann division’s Crazy Days campaign has a significant impact on quarterly revenue and operating results, as the campaign drives a surge in consumer activity during the period it is held. 

Supply chain and logistics
The global value chain in the retail sector is inherently complex, involving multiple stages from sourcing to final delivery. Unexpected disruptions in the supply chain, such as delays in shipments or production stoppages, may increase operational costs. Given the Group’s reliance on a global supply network, unexpected logistics issues could lead to higher freight costs and longer lead times, potentially affecting inventory availability and customer satisfaction. The Group anticipates increasing protectionism and potentially rising trade barriers, which may present additional challenges for global supply chain and logistics operations. 

Sustainability risks
Sustainability-related risks continue to be significant for Lindex Group, with climate change specifically identified as an economic risk for the company. These risks concern the Group’s ability to manage environmental impacts and adapt to changing regulations and expectations regarding sustainability efforts and reporting. 

Information security and cyber risks
The risk of cyberattacks and IT disruptions remains elevated as cybercrime becomes increasingly sophisticated. A successful cyberattack could compromise data privacy, disrupt operations, and negatively affect the Group’s reputation. Continuous investment in robust cybersecurity measures is essential. Talent and organisational risks
Attracting and retaining skilled personnel remains critical for operational continuity and strategic execution. High competition for talent and elevated turnover risk could hinder progress on key initiatives. 

Risk management in the lindex Group

The goal of risk management is to secure the Group’s earnings development and to ensure that the company operates without any disturbances by controlling risks in a cost efficient and systematic manner in all divisions.

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