Buy Or Sell Opportunity • Jul 19
Now 29% overvalued Over the last 90 days, the stock has fallen 1.5% to €2.32. The fair value is estimated to be €1.80, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 37%. Revenue is forecast to grow by 4.1% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Announcement • Jul 17
Lindex Group Oyj Reaffirms Earnings Guidance for 2026 Lindex Group Oyj reaffirmed earnings guidance for 2026. In 2026, Lindex Group expects its revenue to grow in local currencies compared to 2025. The company maintains its full-year guidance and remain well positioned to continue executing strategy and delivering long-term value. Reported Earnings • Apr 30
First quarter 2026 earnings released: €0.12 loss per share (vs €0.13 loss in 1Q 2025) First quarter 2026 results: €0.12 loss per share (improved from €0.13 loss in 1Q 2025). Revenue: €193.0m (up 3.8% from 1Q 2025). Net loss: €19.7m (loss narrowed 2.5% from 1Q 2025). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Announcement • Apr 29
Lindex Group Oyj Provides Revenue Guidance for the Full Year 2026 Lindex Group Oyj provided revenue guidance for the full year 2026. For the period, the company expects its revenue to grow in local currencies compared to 2025. Announcement • Mar 26
Lindex Group plc Announces Board and Committee Changes Lindex Group plc at its Annual General Meeting held on March 26, 2026, elected Matti Piri as a new member of the Board of Directors. The term of office of the member of the Board of Directors will continue until the end of the next Annual General Meeting. The Board of Directors convened after the Annual General Meeting and elected Sari Pohjonen as Chair and Roland Neuwald as Vice Chair. The Board of Directors has assessed the independence of its members in accordance with recommendation 10 of the Finnish Corporate Governance Code 2025 and assessed that all seven members of the Board of Directors are considered to be independent of the company. Six Board members are independent of significant shareholders (Andrea Collesei, Roland Neuwald, Matti Piri, Sari Pohjonen, Tracy Stone and Harriet Williams). Stefan Björkman is not considered to be independent of a significant shareholder of the company due to his position as Chair of the Board of Nordic Retail Partners JV LP. The Board of Directors decided to establish an Audit Committee and a People and Remuneration Committee from among its members. Matti Piri was elected as Chair of the Audit Committee and Roland Neuwald and Sari Pohjonen were elected as other members of the committee. Stefan Björkman was re-elected Chair of the People and Remuneration Committee and Sari Pohjonen, Tracy Stone and Harriet Williams were elected as other members of the committee. Reported Earnings • Feb 11
Full year 2025 earnings released: EPS: €0.16 (vs €0.082 in FY 2024) Full year 2025 results: EPS: €0.16 (up from €0.082 in FY 2024). Revenue: €952.3m (up 1.3% from FY 2024). Net income: €26.2m (up 99% from FY 2024). Profit margin: 2.8% (up from 1.4% in FY 2024). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Announcement • Feb 07
Lindex Group Oyj Provides Earnings Guidance for the Year 2026 Lindex Group Oyj provided earnings guidance for the year 2026. In 2026, Lindex Group expects the revenue in local currencies to grow compared to 2025. Buy Or Sell Opportunity • Jan 22
Now 23% overvalued Over the last 90 days, the stock has fallen 8.2% to €2.48. The fair value is estimated to be €2.01, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 87%. Buy Or Sell Opportunity • Dec 30
Now 22% overvalued Over the last 90 days, the stock has fallen 9.5% to €2.47. The fair value is estimated to be €2.02, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 87%. Reported Earnings • Oct 26
Third quarter 2025 earnings released: EPS: €0.012 (vs €0.012 in 3Q 2024) Third quarter 2025 results: EPS: €0.012 (in line with 3Q 2024). Revenue: €227.6m (up 2.5% from 3Q 2024). Net income: €1.90m (flat on 3Q 2024). Profit margin: 0.8% (down from 0.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Announcement • Oct 25
Lindex Group Oyj Revises Earnings Guidance for the Year 2025 Lindex Group Oyj revised earnings guidance for the year 2025. In 2025, Lindex Group expects its revenue to increase by 0%-2% in local currencies compared to 2024 against previous guidance for 2025 (published on 7 February 2025): revenue to increase by 0%-4% in local currencies compared to 2024. The macroeconomic situation in Lindex Group's main markets has been volatile throughout the year as continuing geopolitical uncertainty, together with the risks for global trade disturbances, have slowed down the economic recovery. Despite lower interest rates and decreased inflation, GDP (Gross Domestic Product) growth forecasts for 2025 have remained very cautious. However, consumer confidence shows some signs of gradual improvement, which, together with increasing household purchasing power, may support a more favourable development in consumer demand during the remaining part of the year. The situation may still vary across the Group's different markets, and disruptions in supply chains and international logistics during the year cannot be excluded. Reported Earnings • Jul 20
Second quarter 2025 earnings released: EPS: €0.068 (vs €0.044 in 2Q 2024) Second quarter 2025 results: EPS: €0.068 (up from €0.044 in 2Q 2024). Revenue: €253.9m (flat on 2Q 2024). Net income: €13.1m (up 87% from 2Q 2024). Profit margin: 5.2% (up from 2.8% in 2Q 2024). Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Announcement • Jul 18
Lindex Group Oyj Maintains Earnings Guidance for the Full Year 2025 Lindex Group Oyj maintained earnings guidance for the full year 2025. For the year, the company expected its revenue to increase by 0%-4% in local currencies compared to 2024. Announcement • Jun 29
Helsinki District Court Approves Lindex Group Plc's Application for the Amendment of the Restructuring Programme - the Group's Strategic Assessment Continues On 9 June 2025, Lindex Group plc announced the settlement of the last dispute related to its restructuring programme. This enabled the Group to seek an amendment to the restructuring programme in the Helsinki District Court in accordance with the settlement, and to commence the process to end the restructuring programme. The District Court has now approved the amendment to the restructuring programme. Lindex Group will therefore proceed to fulfil the obligations agreed in the settlement agreement and the restructuring programme. The supervisor of Lindex Group’s restructuring programme is expected to thereafter prepare a final report on the implementation of the programme, which will end the restructuring programme when all the actions agreed between the parties have been implemented. Lindex Group currently expects this to occur during the third quarter of 2025. Lindex Group’s Board of Directors continues to fully focus on the strategic assessment in order to evaluate the best long-term alternative for the Stockmann department store business from the perspectives of all of the company’s stakeholders. Lindex Group plc will provide an update on the assessment when appropriate. Buy Or Sell Opportunity • Jun 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.9% to €2.86. The fair value is estimated to be €3.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 77%. For the next 3 years, revenue is forecast to grow by 1.2% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Announcement • Jun 10
Lindex Group Settles the Last Dispute Related to the Restructuring Process and Will Seek to End the Restructuring Programme Lindex Group plc settled the remaining dispute related to its restructuring process with LähiTapiola Keskustakiinteistöt Ky. The dispute comprised two separate claims between Lindex Group plc and its subsidiaries and LähiTapiola Keskustakiinteistöt Ky and related to the amount of damages to be paid for the termination of the lease agreement for Stockmann's department store in Tapiola. The compensation to be paid is considered as restructuring debt. Lindex Group has in 2022 made a provision of EUR 15.9 million of the disputed claims in question. The settlement of the disputes will not impact Lindex Group's adjusted operating result but will have a positive impact on Lindex Group's operating result. After the settlement, all undisputed debts, confirmed in their final amounts, will be duly paid as part of the restructuring process. The settlement enables Lindex Group plc to seek ending the restructuring programme. This process will be started in cooperation with the supervisor of the restructuring programme by preparing an application to amend the restructuring programme as soon as possible. The restructuring debts will be paid after Helsinki District Court's decision concerning the amendments to the restructuring programme is final. The supervisor has informed Lindex Group that after the restructuring debts have been paid a final report on the implementation of the programme, ending the restructuring, will be presented. Following the settlement between Lindex Group and LähiTapiola Keskustakiinteistöt Ky, Lindex Group's Board of Directors will review the impact it will have on the Group's strategic assessment, which the Board previously announced in September 2023. Lindex Group will provide an update on the assessment when appropriate. Announcement • Jun 05
Lindex Group Oyj Appoints Niklas Lindholm as Chief People Officer and A Member of the Group Management Team Lindex Group plc appointed Niklas Lindholm, Ph.D. (Econ), as the company's new Chief People Officer and a member of the Group Management Team. In addition to his role as Group Chief People Officer, Lindholm will also act as the Lindex division's Chief People and Communications Officer. He will take up his new position during the fourth quarter in 2025, reporting to the Group CEO Susanne Ehnbåge and will be based in Gothenburg, Sweden. Prior to Lindex Group, Lindholm has acted as HR executive for over 25 years. He has extensive international experience in human resources across various sectors, including consumer goods, food and beverage, pharmaceuticals, and technology. Most recently Lindholm worked as CPO at Oriola Corporation, earlier CPO at Fiskars Group, SVP HR at Paulig Group and earlier at Nokia. Reported Earnings • Apr 29
First quarter 2025 earnings released: €0.13 loss per share (vs €0.097 loss in 1Q 2024) First quarter 2025 results: €0.13 loss per share (further deteriorated from €0.097 loss in 1Q 2024). Revenue: €186.0m (down 3.5% from 1Q 2024). Net loss: €20.2m (loss widened 31% from 1Q 2024). Revenue is forecast to grow 1.9% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Apr 24
Now 21% undervalued Over the last 90 days, the stock has risen 8.1% to €2.93. The fair value is estimated to be €3.71, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 60%. Buy Or Sell Opportunity • Apr 03
Now 21% undervalued Over the last 90 days, the stock has risen 7.0% to €2.91. The fair value is estimated to be €3.69, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 60%. For the next 3 years, revenue is forecast to grow by 1.0% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Apr 02
Lindex Group plc Elects Andrea Collesei as New Member of the Board of Director Lindex Group plc announced that at its AGM held on 2 April 2025, the shareholders approved election of Andrea Collesei as a new member of the Board of Directors. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. Independent Director Timo Karppinen was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: €0.082 (vs €0.33 in FY 2023) Full year 2024 results: EPS: €0.082 (down from €0.33 in FY 2023). Revenue: €940.2m (down 1.2% from FY 2023). Net income: €13.2m (down 75% from FY 2023). Profit margin: 1.4% (down from 5.4% in FY 2023). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Reported Earnings • Feb 11
Full year 2024 earnings released: EPS: €0.082 (vs €0.33 in FY 2023) Full year 2024 results: EPS: €0.082 (down from €0.33 in FY 2023). Revenue: €940.1m (down 1.2% from FY 2023). Net income: €13.2m (down 75% from FY 2023). Profit margin: 1.4% (down from 5.4% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Nov 29
The District Court of Western Uusimaa Passes Its Decision in Dispute Between Lindex Group plc and Lähitapiola Keskustakiinteistöt Ky The District Court of Western Uusimaa has on November 29, 2024 given a decision in the case between Lindex Group plc and LähiTapiola Keskustakiinteistöt Ky. Lindex Group plc had requested that the District Court declare null and void or set aside the arbitral award issued on 31 August 2021 in a dispute between the same parties regarding the amount of damages to be paid for the termination of the lease agreement for Stockmann's department store in Tapiola. The arbitral award had determined that the amount of compensation to be paid to LähiTapiola Keskustakiinteistöt Ky is EUR 19.3 million. The compensation is Lindex Group plc's restructuring debt. Lindex Group plc has already paid EUR 3.5 million of the compensation. The District Court of Western Uusimaa dismissed Lindex Group plc's claim. It is possible to appeal the District Court's decision to the Court of Appeal. Lindex Group plc will look into the decision and is considering further action in the matter. Announcement • Nov 07
Lindex Group Oyj Appoints Riku Lyly as Chief Operating Officer of Lindex Group Plc's Stockmann Division and Member of the Group Management Team Riku Lyly, b.1984(M.Sc.) has been appointed Chief Operating Officer (COO) of the Lindex Group plc's Stockmann division and member of the Lindex Group Management Team as of 6 November 2024. Riku Lyly has worked as Stockmann division's interim Chief Operating Officer (COO) from 15 August 2024. Prior to this, he held the position of Chief Offering and Experience Officer of the Stockmann division. Riku Lyly has been with Lindex Group since 2021. Previously, he held leadership roles at Adidas in the Nordics and commercial roles in the XXL Sports & Outdoor eCommerce organisation. Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: €0.011 (vs €0.056 in 3Q 2023) Third quarter 2024 results: EPS: €0.011 (down from €0.056 in 3Q 2023). Revenue: €226.6m (flat on 3Q 2023). Net income: €1.90m (down 78% from 3Q 2023). Profit margin: 0.8% (down from 3.8% in 3Q 2023). Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 22
Second quarter 2024 earnings released: EPS: €0.04 (vs €0.085 in 2Q 2023) Second quarter 2024 results: EPS: €0.04 (down from €0.085 in 2Q 2023). Revenue: €256.1m (up 1.7% from 2Q 2023). Net income: €7.00m (down 49% from 2Q 2023). Profit margin: 2.7% (down from 5.5% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jul 17
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.5% to €3.03. The fair value is estimated to be €3.92, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.5% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 1.2% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Jul 15
Lindex Group Oyj Provides Revenue Guidance for the Year 2024 Lindex Group Oyj provided revenue guidance for the year 2024. In 2024, the company expects its revenue in local currencies to be in the range of -2% to +2% compared to 2023. Announcement • Jul 04
Lindex Group plc Announces Chief Financial Officer Changes Lindex Group plc appointed Henrik Henriksson, M.B.A., Finance and General Management, as the company's new Chief Financial Officer (CFO) and a member of the Group Management Team. In addition to his role as Group CFO, Henriksson will also act as the Lindex division's CFO. He will take up his new position on 1 September 2024, reporting to the Group CEO Susanne Ehnbåge and will be based in Sweden. Prior to Lindex Group, Henriksson has worked as CFO of Eton Shirts AB and in several financial leadership positions in H&M Group in Sweden, the UK and the US. In his previous roles Henriksson has gained proven and broad experience in driving profitable growth and omnichannel expansion. In a financial career of almost 25 years, he has held senior leadership positions for about 20 years. Lindex Group's current CFO Annelie Forsberg will continue working at the Group until the end of August 2024. Announcement • Jun 19
Lindex Group plc Appoints Riku Lyly as Interim Chief Operating Officer, Effective 15 August 2024 Lindex Group plc announced Riku Lyly, M.Sc., born 1984, has been appointed as interim Chief Operating Officer (COO) of the company's Stockmann division. He will start in this position on 15 August 2024. As announced on 14 May 2024, current COO Tove Westermarck is leaving the company to join a new employer. She will support Lyly to secure a smooth transition. Riku Lyly has worked with the Stockmann division since 2021, currently as Chief Offering and Experience Officer. Prior to Lindex Group, Lyly has held marketing director roles at Adidas Nordics and commercial leadership roles in the XXL Sports & Outdoor eCommerce organization. Announcement • May 15
Lindex Group Oyj Announces Resignation of Tove Westermarck as Chief Operating Officer (COO) Lindex Group Oyj announced that Chief Operating Officer (COO) of Lindex Group plc’s Stockmann division and member of the Group Management Team Tove Westermarck will join a new employer. She will continue in her role in the Lindex Group until autumn 2024. The recruitment process for a new COO has been initiated. Reported Earnings • Apr 26
First quarter 2024 earnings released: €0.10 loss per share (vs €0.13 profit in 1Q 2023) First quarter 2024 results: €0.10 loss per share (down from €0.13 profit in 1Q 2023). Revenue: €197.3m (flat on 1Q 2023). Net loss: €15.4m (down 179% from profit in 1Q 2023). Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Announcement • Mar 22
Stockmann Oyj Abp Decides to Establish an Audit Committee and People and Remuneration Committee Stockmann Oyj Abp announced that at its Annual General Meeting held on 21 March 2024, the Board of Directors decided to establish an Audit Committee and a People and Remuneration Committee among its members. Timo Karppinen was elected as Chair of the Audit Committee, and Roland Neuwald and Sari Pohjonen were elected as the other members of the committee. Stefan Björkman was elected as Chair of the People and Remuneration Committee and Sari Pohjonen, Tracy Stone and Harriet Williams as the other members of the committee. Reported Earnings • Mar 04
Full year 2023 earnings released: EPS: €0.33 (vs €0.66 in FY 2022) Full year 2023 results: EPS: €0.33 (down from €0.66 in FY 2022). Revenue: €951.7m (down 3.1% from FY 2022). Net income: €51.7m (down 49% from FY 2022). Profit margin: 5.4% (down from 10% in FY 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Announcement • Feb 09
Stockmann Oyj Abp Provides Revenue Guidance for the Year 2024 Stockmann Oyj Abp provides revenue guidance for the year 2024. For the period, the company expects its revenue to increase by 1-3% in local currencies compared to 2023. New Risk • Jan 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 17% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.3% net profit margin). Shareholders have been diluted in the past year (2.0% increase in shares outstanding). Announcement • Nov 12
Stockmann Oyj Abp Revises Revenue Guidance for the Year of 2023 Stockmann Oyj Abp revised revenue guidance for the year of 2023. For the year, Group expects its revenue to be in the range of EUR 940 million – EUR 970 million against previously guidance of EUR 940 million – EUR 1,000 million. Reported Earnings • Oct 30
Third quarter 2023 earnings released: EPS: €0.056 (vs €0.058 in 3Q 2022) Third quarter 2023 results: EPS: €0.056 (down from €0.058 in 3Q 2022). Revenue: €227.5m (down 12% from 3Q 2022). Net income: €8.70m (down 4.4% from 3Q 2022). Profit margin: 3.8% (up from 3.5% in 3Q 2022). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • Oct 27
Stockmann Oyj Abp Provides Revenue Guidance for 2023 Stockmann Oyj Abp provided revenue guidance for 2023. In 2023, the company expects the Group's revenue to be in the range of EUR 940-1 000 million. Announcement • Sep 28
Stockmann Oyj Abp to Report Q3, 2023 Results on Oct 27, 2023 Stockmann Oyj Abp announced that they will report Q3, 2023 results on Oct 27, 2023 Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €2.42, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Multiline Retail industry in Europe. Total returns to shareholders of 197% over the past three years. Announcement • Sep 09
Stockmann Oyj Abp Appoints Members of Nomination Board Stockmann Oyj Abp announced that the following persons have been appointed as their representatives to Stockmann's shareholders' Nomination Board: Stefan Björkman, Chair of the Board of Directors, Nordic Retail Partners JV LPFabian Chrobog, Chief Investment Officer, North Wall Capital LLP; Markus Aho,Chief Investment Officer, Varma Mutual Pension Insurance Company; and Björn Teir, CEO, The Society of Swedish Literature in Finland. In addition, Chair of the Board Sari Pohjonen will join the Nomination Board as an expert member. Buying Opportunity • Aug 03
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be €2.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.7% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.9% per annum. Earnings is forecast to decline by 15% per annum over the same time period. New Risk • Jul 23
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.3% Last year net profit margin: 14% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.3% net profit margin). Reported Earnings • Jul 21
Second quarter 2023 earnings released: EPS: €0.085 (vs €0.48 in 2Q 2022) Second quarter 2023 results: EPS: €0.085 (down from €0.48 in 2Q 2022). Revenue: €251.9m (down 6.4% from 2Q 2022). Net income: €13.8m (down 83% from 2Q 2022). Profit margin: 5.5% (down from 30% in 2Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 12% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Announcement • Jul 18
Stockmann Group Revises Earnings Guidance for the Year 2023 Stockmann Group revised earnings guidance for the year 2023. The group lowers its 2023 guidance for the revenue due to the exchange rate impacts. The group expects revenue to be in the range of EUR 940 million to EUR 1,000 million against previous guidance of EUR 960 million to EUR 1,020 million. The change in revenue is related to the impact of the fluctuation of exchange rates that have a significant impact on Stockmann's performance. Especially the weak Swedish krona and the Norwegian krone have had an adverse impact on revenue and result. New Risk • Jun 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 36% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Minor Risk Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: €0.13 (vs €0.02 in 1Q 2022) First quarter 2023 results: EPS: €0.13 (up from €0.02 in 1Q 2022). Revenue: €198.5m (up 1.2% from 1Q 2022). Net income: €19.5m (up €16.7m from 1Q 2022). Profit margin: 9.8% (up from 1.4% in 1Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 13% growth forecast for the Multiline Retail industry in Europe. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: €0.65 (vs €0.42 in FY 2021) Full year 2022 results: EPS: €0.65 (up from €0.42 in FY 2021). Revenue: €1.08b (up 20% from FY 2021). Net income: €101.6m (up 112% from FY 2021). Profit margin: 9.4% (up from 5.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Multiline Retail industry in Europe are expected to grow by 5.4%. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 15% share price gain to €2.15, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 12x in the Multiline Retail industry in Europe. Total returns to shareholders of 7.9% over the past year. Board Change • Nov 16
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. No highly experienced directors. Independent Director Tracy Stone is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 16% share price gain to €2.35, the stock trades at a trailing P/E ratio of 2.6x. Average trailing P/E is 10x in the Multiline Retail industry in Europe. Total returns to shareholders of 41% over the past year. Reported Earnings • Jul 22
First quarter 2022 earnings released: EPS: €0.02 (vs €0.39 loss in 1Q 2021) First quarter 2022 results: EPS: €0.02 (up from €0.39 loss in 1Q 2021). Revenue: €196.1m (up 26% from 1Q 2021). Net income: €2.80m (up €32.2m from 1Q 2021). Profit margin: 1.4% (up from net loss in 1Q 2021). Buying Opportunity • Jul 22
Now 20% undervalued Over the last 90 days, the stock is up 43%. The fair value is estimated to be €3.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.4% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 20% share price gain to €2.42, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 11x in the Multiline Retail industry in Europe. Total returns to shareholders of 79% over the past year. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improved over the past week After last week's 27% share price gain to €2.21, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 11x in the Multiline Retail industry in Europe. Total returns to shareholders of 4.3% over the past three years. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. No highly experienced directors. Independent Director Tracy Stone is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 18% share price decline to €1.54, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 17x in the Multiline Retail industry in Europe. Total loss to shareholders of 35% over the past three years. Reported Earnings • Mar 01
Full year 2021 earnings: Revenues exceed analyst expectations Full year 2021 results: Revenue: €930.9m (up 18% from FY 2020). Net income: €47.9m (up €339.5m from FY 2020). Profit margin: 5.1% (up from net loss in FY 2020). The move to profitability was primarily driven by lower expenses. Revenue exceeded analyst estimates by 13%. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS €0.07 (vs €0.018 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €244.0m (up 18% from 3Q 2020). Net income: €23.3m (up €22.1m from 3Q 2020). Profit margin: 9.5% (up from 0.6% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Board Change • Sep 23
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 6 new directors. 3 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Vice Chairman Leena Niemisto is the most experienced director on the board, commencing their role in 2016. Independent Director Tracy Stone was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Jul 24
Second quarter 2021 earnings released: EPS €0.24 (vs €0.17 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €228.0m (up 25% from 2Q 2020). Net income: €19.1m (up €31.9m from 2Q 2020). Profit margin: 8.4% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 36% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 06
Full year 2020 earnings released: €4.05 loss per share (vs €0.84 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: €800.4m (down 17% from FY 2019). Net loss: €291.6m (loss widened 380% from FY 2019). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue beats expectations Revenue exceeded analyst estimates by 13%. Over the next year, revenue is forecast to stay flat compared to a 8.6% growth forecast for the Multiline Retail industry in the United Kingdom. 
