Lindex to cut costs and jobs as Q2 revenues drop
Stockmann-owned fashion retailer Lindex is to cut costs and shed jobs as it works to overcome the negative effect of the pandemic on its business.
The company this week said revenues declined by around 18% in Q2, and while sales returned to growth towards the end of the quarter, the firm will fall short of its full-year target.
The company has therefore launched a programme to cut €14.5 million in costs from the business, mainly from 2021 onwards.
The savings will be achieved by optimising the store network and restructuring its head office operations. It aims to cut fixed costs related to its business premises, and also to streamline its overall operations. It didn’t detail how many jobs would be lost.
It hasn’t been all bad news for the company in recent periods as last month it said that e-tail had grown by 102% in Q2.
But the need for the latest measures will come as a huge disappointment to management as Lindex had looked to be getting back on track in recent periods, unlike Stockmann itself. In January, the group was expecting overall improved results on the back of the Lindex recovery.
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