In late September 2023, the firm’s board of directors decided to commence a strategic assessment to increase shareholder value.
The proposed name change would better reflect the Lindex division’s role in the business. It will not impact the branding or daily business of the department stores.
Lindex reported a total revenue of €661m ($701.89m) in 2022, which accounted for more than two-thirds of Stockmann’s revenues.
It also delivered an operating profit of €90m, making Lindex the main profit contributor within Stockmann.
The company is considering options including splitting Stockmann’s department stores into separate businesses within the group, or divesting them.
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The company could also continue to operate the business under the current structure.
Stockmann board of directors chair Sari Pohjonen stated: “Lindex has had a fundamental role in improving the performance of the Group over the years. The launch of the strategic assessment of considering a name change and evaluating strategic alternatives for the department store business is a natural next step in our strategy and reflects Lindex’s growing importance within the group.
“The strategic assessment will not impact the Stockmann department store’s iconic brand or daily business.”
Stockmann expects the strategic assessment to be completed in 2024.
The company confirmed that it “will provide an update on the strategic assessment if, and when, appropriate”.