Lindex announced yesterday that it is continuing to investigate strategic alternatives for its department store business, which was initiated in the fall of 2023, and expects this to be finalized during H1'25.

The Länsi-Uusimaa District Court on Friday upheld an earlier arbitration court ruling that the company should pay 16 MEUR "additional compensation" to LähiTapiola in the last outstanding restructuring dispute.

We expect a lot of news flow from Lindex in the near future, as the results of the strategic review of the department store business should be published later this year, the latest restructuring dispute will be decided by the court and, on top of that, the company's guidance is, in our view, susceptible to a profit warning.

Lindex's Q3 results were weak as logistical challenges and a weak market environment weighed on earnings. The upper end of the guidance was lowered and the company now expects full-year adjusted EBIT to be in the range of 70-80 MEUR. Our forecast is 68 MEUR.