Hello and good morning everyone, and welcome to our Media and Analyst webcast, where we will present Stockmann Group's result for October to December and also for the full year of 2023. I'm Susanne Ehnbåge, CEO, and with me I have Annelie Forsberg, CFO of the Stockmann Group. Let's continue to today's agenda. At first, we will look into a business update for both divisions, Lindex and Stockmann, followed by the presentation of our financial development. We will also take a look at the division's strategies and our key strategic actions in 2024. After our presentation, we will have a Q&A session where we will answer your questions. We can move on to the next page. We will begin with a business update with focus on the full year performance, so let's first look at the group's highlights for 2023.
In 2023, the Stockmann Group focused on systematically building a solid and sustainable foundation for both its divisions, Lindex and Stockmann. Despite a challenging market environment characterized by sustained high inflation, elevated interest rates, and geopolitical uncertainties, the Stockmann Group achieved enhanced profitability. The group's adjusted operating result improved to EUR 80 million, with significant improvement in local currencies. The foreign exchange rates had a negative impact of EUR 5.7 million on the adjusted operating result. The Stockmann Group's underlying business is developing in the right direction, and in 2023, the financial position improved further in terms of free cash flow, financing, and equity. In November, we hosted a Capital Markets Day where we announced updated strategies and also financial targets for the divisions.
With these strategies, we have clear plans to accelerate value creation, and we will come back to the strategies and also the financial targets later on in this webcast. In 2023, we also took an important step in the climate change mitigation as we submitted our new climate targets to the Science Based Targets initiative, and also defined our roadmap for both of our divisions to reach the target. The group target is to reduce climate emissions by 42% by 2030 compared to 2022. We expect to have validated science-based climate targets during 2024. In September, we also announced that the Stockmann Group was commencing a strategic assessment to crystallize shareholder value by refocusing the group's business on Lindex. As part of the strategic assessment, Stockmann plc is considering a name change to Lindex Group and will investigate strategic alternatives for the Stockmann department store business.
The assessment is ongoing and is expected to be finalized during 2024. In 2023, we also saw good progress in the restructuring program. At the moment, we only have two remaining disputed claims totaling EUR 29.1 million. The latest settlement agreement was reached a few days ago, and we aim to end the restructuring process as soon as possible. Now let's take a look at the key figures for 2023. Stockmann Group's revenue decreased to EUR 951.7 million, but increased by 1.6% in local currencies. The Lindex division continued its sales growth by 2.7% in local currencies, and the revenue increased in all main markets, both in physical and in digital channels. The Stockmann division's revenue decreased slightly, mainly due to the reduced size of the Stockmann Itis department store.
As I already mentioned, the group's adjusted operating result improved to EUR 80 million and also improved significantly in local currencies. The Lindex division's result improved significantly in local currencies, with an adjusted operating result of EUR 90.3 million, driven by higher sales, improved gross margins, and also effective cost efficiency. The currency impact was EUR 5.7 million. The Stockmann division's adjusted operating result weakened due to the lower sales, gross margins, and also higher depreciations for leases. However, the Stockmann division implemented successful cost-saving actions to mitigate that decline. The Stockmann division also improved its result during the second half of the year compared to the previous year. In 2023, we also saw a significant improvement in free cash flow. Let's move on to the next slide. Here you can see the Stockmann Group's revenue split by division, markets, and also categories.
Here you can see that Lindex stands for two-thirds of the revenue. Sweden and Finland are the two biggest markets, standing also for two-thirds of the revenue. The third chart tells clearly that fashion is our key category, and it generates 8% of the group's revenue. Where we have beauty, that is the second biggest category, with an 8% share of the revenue. If we continue, we can see the Stockmann Group has a strong market position in the Nordics and the Baltics, as well as global partnerships. In 2023, the number of Lindex stores grew by three stores, to 439 stores. During the year, Lindex has expanded and launched with new partners. Here we have Manor and John Lewis in both new and existing markets. The Stockmann division has eight department stores in Finland, Estonia, and Latvia.
Then if we continue and look into the Lindex division, here we have many things to be proud of. We reached all-time high sales levels in local currencies for both the Q4 and also the full year of 2023. We report new record results for the full year, now for the third year in a row. During the full year, we reached an adjusted operating margin of 14.3%, and this is a fantastic development under challenging market conditions, where we have managed to grow both sustainably and profitably. We have outperformed the average market growth during the year, and our sales increased by 2.7% in local currencies. We report strong growth in both our physical stores and in our digital channels, in all of our main markets. Lingerie was the best-performing category.
As said on the previous slide as well, we have expanded and launched with new partners in both new and existing markets during 2023. Another highlight during the year is the progress with our authentic brand, Female Engineering, which now offers a holistic product offering for women in different stages of life. Here we can also expect more products to come. Throughout the year, we have also continued to drive our digital transformation with important ongoing investments. We have continued our sustainability and circular transformation, where the integration of innovative solutions and partnerships is key. Our new long-term agreement with Infinited Fiber Company that we signed during the Q4 is one significant step into this journey. Another highlight is that we continue to grow with both new and active customers, and that we now have over 6 million registered customers.
The number of new customers has increased by 1 million during 2023. This is a nice proof of strength that our offer is appreciated and that we continue to strengthen the Lindex brand. Last but not least, we have, in line with Lindex's high purpose to empower and inspire women everywhere, been supporting the important Pink Ribbon campaign for 20 years. Since the start, we have, together with our customers, raised EUR 2.9 million to cancer research, thanks to the fantastic commitment from both our customers and employees. Our employee engagement at Lindex is really a unique strength. We can see that through our engagement survey tool, that we continue to remain our employee Net Promoter Score as extremely strong at 64, which is then among top 5% in the consumer industry in the world.
Lindex's successful development during 2023 is really a direct connection to our strong culture and high engagement within the company. If we continue to the Stockmann division, our key was to prioritize the strategic must-win areas to build foundation for profitability and future growth. Without the negative impact of the reduced size of the Stockmann Itis department store, the division would have improved its performance versus previous year. The Stockmann division improved its result during the second half of the year compared to the previous year. The Stockmann division also implemented successful cost savings in all areas. The savings totaled EUR 7.7 million and helped to improve also the free cash flow. We will continue with good cost control to secure profitability improvement going forward.
We managed to improve the Stockmann division's free cash flow by almost EUR 9 million to minus EUR 12 million, mainly due to lower net working capital. Our target is to reach positive free cash flow in the mid-term, and this year proved that we are on the right course. Focus on premium and luxury is one of the Stockmann division's strategic focus areas. We further elevated the offering by introducing new premium and luxury brands, such as Stella McCartney. We currently have over 150 brands in our assortment that have a very limited distribution. In the spring 2023, we were also happy to welcome Riviera Maison in our Helsinki flagship department store. The Stockmann division also succeeded its strategic target to grow and leverage the loyalty base. The division's loyalty program showed a good development in key KPIs for 2023.
The share of revenue from loyal customers increased, and loyal customer average purchase grew. In addition, the number of active loyal customers also grew. In Q4, we got the first result of the RFID project implementation. RFID is now in use in the fashion categories in Finland. It has already improved significantly the stock accuracy and also the process efficiency. RFID will now be rolled out in all fashion categories in all markets during this year. Stockmann is expanding also its revenue streams. As an example, we launched Stockmann Pro, which is a modern online platform for corporate and public sector customers in December. Stockmann Pro offers a one-stop destination for personalized corporate gifts, and it provides self-service options and tailored solutions by the Stockmann business-to-business sales team. Now I will hand over to Annelie, and she will present our financial development.
Thank you, Susanne, and good morning, everyone. So let's take a closer look on the Stockmann Group's financial performance during the Q4 and full year for 2023. Starting with Lindex in Q4 , there was a good sales growth of 2.8% in local currencies, despite a challenging market. Growth came from all main markets, and Lindex gained market shares. However, currency rate fluctuations resulted in a 2.3% decline in reported euro revenue. Both new and existing customers increased purchases, particularly in kids' wear and women's wear, with growth seen in both physical stores and online. Lindex's adjusted operating result slightly improved in local currencies during the quarter, thanks to higher sales and an improved gross margin. This improvement was explained by efficient sourcing and price increases, which together mitigated the impact of the stronger US dollar, which is the main purchasing currency for Lindex.
Costs increased due to inflation and strategic investments, but it was still a positive quarter for Lindex in local currencies, despite a decrease when translated to euros. Summarizing the full year for Lindex, the revenue increased by 2.7% in local currencies, which outperformed the market growth. Translated to euro, the revenue although declined. Throughout the full year, Lindex's underlying business experienced growth, most digitally but also physically, and the digital share of the revenue increased. The full year adjusted operating result for Lindex reached a new record, where the result grew with more than 6% in local currencies. The strong profitability is explained by higher sales, improved gross margin, and effective cost control, which partly compensated the effects of the strategic investments and high inflation. In summary, a good quarterly and full year result for Lindex, although impacted by reporting currency to euro.
We can continue with Stockmann division on next page. The division increased revenue by 5.7% during the Q4 . The timing of the Crazy Days campaign was the main reason for the increase, while the reduced store area of the Itis department store partly impacted sales negatively. The quarterly adjusted operating result for the Stockmann division improved to EUR 9 million, where the increase was explained by Crazy Days timing combined with strong cost savings during Q4 . Summarizing the full year for Stockmann division, the revenue slightly decreased as a result of the reduced store area of Itis, where revenue otherwise would have increased. The adjusted operating result for the full year declined to -EUR 6.3 million, explained by higher clearance sales, reduced sales area for Itis, and higher depreciations that all impacted negatively.
Although important to note is that we see good result from cost savings over the last six months that has improved the result when compared to previous year's six months. So in summary, an improved quarter for the Stockmann division, where we continue to see good development. So then let's continue to next slide, and we can see how it looks when we combine the divisions and include the group costs. In the Q4 , there was a good performance for the group. Total revenue increased by 3.9% in local currencies, where the increase is due to the timing of Crazy Days and higher sales in Lindex. The adjusted operating result rose to EUR 30.2 million, driven by the timing of Crazy Days, effective cost savings within the Stockmann division, and the underlying good performance of Lindex.
Summarizing the full year, the group's revenue increased by 1.6% in local currencies, but decreased in euros. The group's adjusted operating result improved slightly to EUR 80 million, and without currency impact, the result would have been EUR 5.7 million higher, thanks to Lindex performance. The operating result for 2023 decreased to EUR 76.5 million, as the previous year's figures included capital gains from the sale of real estate in Helsinki and Riga, as well as provision for one of the lease disputes in the restructuring program. So then turning to next page. Looking at the profitability of the divisions, it's evident that Lindex continues to perform well. The adjusted operating result has more than doubled compared to pre-pandemic results. If we were to look further back, the improvement would have been even higher.
Here, it's important to note that the currency from SEK and NOK to euro has had a negative effect on Lindex reporting figures. The Stockmann division has also made significant improvements in profitability compared to 2020 and 2021, although still reporting negative numbers. Between the quarters, the timing of the Crazy Days event has influenced the figures, especially for quarter three 2023. Then we can turn to next page, please. The operating free cash flow remained positive throughout the year, with both divisions showing improvements. When excluding the OCDC investments, Lindex generated a cash flow of EUR 87 million compared to the previous year's EUR 65 million. The Stockmann division improved its cash flow from -EUR 21 million to -EUR 12 million over the year. These improvements in both divisions are primarily driven by enhancements in working capital.
In total, including group costs, this results in an operating free cash flow of EUR 71 million, a significant increase from the comparison year's EUR 40 million. This cash flow has mainly been allocated to the financing of the new omnichannel distribution center for Lindex, with a total investment of EUR 43 million made during 2023 and EUR 82 million since the start. Looking ahead, there are still approximately EUR 28 million in investment left for the OCDC. Inventories are currently at a balanced level and have decreased compared to the previous year. Stockmann's inventory value remained the same as last year, while Lindex has seen a reduction in inventories, thanks to lower freight days and improved supply chain. Then we can turn to next page, please. The financial position has shown significant improvement in recent years, with a current positive net debt and net cash position of EUR 66 million.
In this calculation, lease liabilities are excluded. To explain the lease liabilities further, they consist of more than 400 rental agreements for all Lindex stores, Stockmann department stores, warehouses, etc. According to IFRS accounting standard, these are shown as liabilities, but actually, they don't consist of any interest-bearing components since the leases are annually fixed in the agreements with inflation as a variable. But to be transparent, we show the interest-bearing liabilities, both including and excluding the leases. As mentioned during the Q3 report, we secured a revolving credit facility of EUR 40 million during Q3 , which will further enhance our financial strength. Given the high seasonality in cash flow that is typical for retail companies, having an RCF in place will be highly beneficial for us in the future. Stockmann Group has an improved financial situation, which is also evident turning into the next slide.
Here, it is illustrated how the equity ratio has improved in recent years and now reaches 60.6% excluding IFRS 16 leases. This improvement can be attributed to more profitable business operations, as well as progress made in fulfilling the restructuring program. When including the leases, the equity still shows improvement, now reaching almost 30%. We can turn into next page. In November 2023, we announced financial targets for both divisions, where we will track the progress on these targets annually. Looking at the performance in 2022 and 2023, we can conclude the following. Lindex has set a growth target aiming for an annual revenue increase of 3%-5% in the midterm, with a clear objective of reaching SEK 10 billion in revenue by 2030. Lindex achieved a growth rate of 10.9% in 2022, followed by a 2.7% growth in 2023.
The digital share of revenue is targeted to reach 30% in the midterm. In 2023, Lindex achieved a digital share of 19%, which is an improvement from 2022. The target for the adjusted operating margin is to reach 15% in the long term, where Lindex reached an operating margin of 14.3% in 2023 and 13.6% in 2022. So overall, Lindex is progressing towards its financial targets. Then continuing with Stockmann division targets on next slide, please. The midterm focus for Stockmann division is on achieving growth aligned with market trends in fashion, beauty, and home categories across Finland, Latvia, and Estonia. Market statistics indicate a growth rate of 2.7% in 2023 and 7% in 2022, where the division's growth rates were 10% in 2022 and -0.6% in 2023.
Regarding cash flow, the aim is to achieve positive free cash flow and improve profitability to a 5% adjusted operating margin in the midterm. The division improved its free cash flow from -EUR 20.9 million in 2022 to -EUR 12 million in 2023. The profitability during 2023 was impacted by a lower result in the first six months, resulting in a -2% adjusted operating margin for 2023. Continuing to next page. To summarize the financial highlights in 2023, we can conclude that both divisions and the group are going in the right direction. We have set ambitious financial targets and have started the journey to reach them. Some highlights to remember for 2023 then. Lindex achieved a record-breaking adjusted operating result with a continued strong growth in local currencies.
Stockmann division successfully implemented cost-saving measures during the latest six months and achieved a significant improvement in operating free cash flow. The Stockmann Group strengthened its financial position with an improved equity ratio and good progress in the restructuring program, where currently only two disputes remain. Although since Stockmann Oyj is still in the restructuring program, the board proposes no dividend to be paid for the financial year of 2023. That was the financial update, and I'll hand over to you again, Susanne.
Thank you. We have, as Annelie said, set high goals to continue our sustainable and profitable growth with a clear strategy and a plan ahead in how to accomplish what we strive for. We published our updated strategies for our divisions in November at our Capital Markets Day. For the Lindex division, we have three must-win areas, which focus to accelerate both organic and new growth, continue to transform into a sustainable business, and decouple costs from growth by continuing to improve efficiency. Over the past few years. We can take the next page, please. We have made a lot of preparations, and 2024 is now the year of important launches. A year where we will continue to invest to deliver important strategic initiatives as part of our transformation and to be able to accelerate our global growth in an efficient way with a multi-channel setup.
During 2024, we will launch our new highly automated omnichannel distribution center. This is a critical enabler and a step for fulfilling our growth and profitability plan, and the establishment is progressing according to plan. During the year, we will also continue implementing our digital store program. We are driving a range of exciting initiatives where implementing our new point of sale system and RFID into all of our stores is on top of the agenda. Our strong digital platform will improve the customer experience further. We are ready to scale up and drive growth with our e-commerce and external marketplaces. Another important strategic focus for us is to explore and enable growth within new sales channels, especially within B2B. Here, we will onboard, launch, and develop new partners.
In addition to this, we will continue to identify requirements for the development of new sales channels and investigate potentials with new partners. During 2024, we will also focus on continuing to enhance our efficiency by digitalizing our supply chain. To increase flexibility and to reduce lead times, our focus during the year will be on supplier collaborations and 3D design. To reach our sustainability promise and also our high-set goals, we will proceed with our sustainability transformation. Our focus for 2024 will be to continue to work on reducing our CO2 emissions, and we will also launch a roadmap and direction adjusted to reach our science-based climate target.
We will accelerate renewable energy in the supply chain, and we will also focus on increasing our circular assortment through design and material transformation to deliver on our goals towards, for example, to make sure that our entire assortment will be designed for circularity and longevity by 2025. We will also continue to strengthen women in the supply chain, and within our We Women umbrella, we launch our Women Empowerment program now also in China. We have already rolled out the program in Bangladesh, India, Turkey. So with China, we have introduced it to all of our main production markets. Our goal is that by 2025, Lindex suppliers, who stand for 80% of our production, will have completed our Women Empowerment program and also actively work with gender equality and creating fair and equal workplaces.
So 2024 will really be the year of important launches and where we will deliver many big milestones for our continued successful journey. Looking at the Stockmann division strategy on the next page, our key target is to ensure profitability and future growth. Also for Stockmann, we have defined three must-win areas where we put our focus. The must-win areas are to elevate offering, grow and leverage a loyal customer base, and ensure a seamless omnichannel experience. In addition, the Stockmann division has two focus areas which support profitability and improvement. These are to further improve operational efficiency and expand revenue horizons. Let's then take a look at the Stockmann division's strategy implementation in 2024. In the Stockmann division, our key focus is regaining profitability and to be back in black numbers in 2024. We are driving profitability by systematically implementing the strategy.
We continue to elevate the offering by launching new luxury and premium brands, which we will announce later during the year. The Stockmann division's omnichannel offering is unique since no other player on the market offers a wide offering with a clear focus on premium and luxury, complemented with value-adding services and related partner offering. As I mentioned before, the Stockmann's loyalty program developed positively in 2023, and we will continue to leverage the loyal customer base. The division has initiated a customer segmentation project which will enable us to personalize offering and communication. The Stockmann division will also continue its strong focus on cost efficiency. The division is investing in digitalization to improve both customer satisfaction and process efficiency. The RFID project has already produced good results, and will be implemented in the Baltics and also in new categories during the year.
As we saw in 2023, the Crazy Days campaign timing has a significant impact on the division's revenue and also operating result. In 2024, we will also see that the campaign's impact between the quarters. The spring Crazy Days will be organized in Q2, while last year it was partly in Q1. This means that the Q1 in 2024 will be negatively impacted by the Crazy Days timing. In the autumn, there will be no timing impact for the quarters, and the Crazy Days will be organized in Q3 similarly as it was in 2023. Let's then take a look at the market outlook and also the guidance, Annelie.
Yes. So looking into the 2024 market environment, it is expected to remain challenging due to ongoing geopolitical instability, high interest rates, and inflation. These factors may hinder economic growth and could lead to lower consumer demand in the retail sector. Forecasts suggest stagnant or slow GDP growth in key markets, with inflation expected to decline gradually. Supply chain disruptions and international logistics changes may also occur throughout the year. Based on this market outlook, we have published our guidance for 2024, where we expect the revenue to increase by 1%-3% in local currencies compared to 2023, and that the adjusted operating result will be within the range of EUR 70 million-EUR 90 million. Here, it's important to note that foreign exchange rate fluctuations may have a significant effect on the adjusted operating result.
The key currencies that impact the Stockmann Group result are SEK, NOK, US dollar, and euro. Then we can turn to the next page where we have time for questions.
Now, let's see. Can we hear you, Magda, perhaps?
Yes, thank you. We have received several questions here, and the first one goes then to Lindex regarding the operating cost increases. So how much of Lindex's operating cost increases in Q4 are related to costs around investments in future growth?
Yes.
Yes.
Should I take, yeah? I can start, perhaps. We can see that we have costs during the quarter four that are primarily attributed to strategic initiatives, and that is to achieve our three must-win areas. And what we have done here is that we have invested in new technology and expanded human capital to enable and support the strategic objectives. We can see that these parts of the cost are quite significant, without telling the exact numbers.
Okay. Then we go to our strategic assessment, which is ongoing at the moment. So here we have questions that: Have you already started negotiations with any potential department store buyers? Are there any inquiries? And is it possible that Stockmann department stores will be listed as a spin-off? And then there is one follow-up question, but maybe we start with this if this goes to Susanne.
Yes, thank you. As we have stated before, the strategic assessment is ongoing, and we are looking for strategic alternatives for the Stockmann department store business. At this point, we don't comment the process in more detail, but we will, of course, provide an update on the strategic assessment if and when appropriate. Otherwise, we don't want to speculate on possible consolidation of the European department stores.
Yes, there was a follow-up question. That's how then whether there could be some consolidation seen in the department stores in Europe level in between 5-10 years. So then no comments on that. Then we go to a more specific question regarding Stockmann and to the Helsinki flagship store. You indicated earlier that your flagship department store, Stockmann in Helsinki, is profitable and doing well. In Helsinki, many people still believe that it is loss-making, and there are not that many visitors anymore. As part of the story or urban legend that the city center has lost its attractiveness in Helsinki. Could you please tell how Stockmann in Helsinki is doing? What kind of trends there are? Numbers of visitors or profitability, if you can comment them.
Would you like to start, Susanne?
No, you can take that one, Annelie.
Well, we don't disclose the details regarding our department stores, so we can't really answer that question in detail. Although we know that Helsinki flagship store has a very central part in the central Helsinki here. So it's an important department store for us.
Very good. Then we stay in Stockmann division then. Could you please clarify if there are more cost-saving measures to be made in Stockmann division, and what could these relate to? And will there be more efficiencies to be made with regards to central administration?
I can take that question then. Yes, we can see now in the Q3 and the Q4 , the positive cost savings we have done have been actually all over the company and the division. And here we can see that we see still good potential in the different parts here. And of course, we always look into how we can make even more efficiency regarding the costs.
Yes, thank you. And then there's one more question about the strategic assessment. When do you expect the strategic assessment process to be ending? I think Susanne partly responded to that. Are you planning to wait for cases to be solved, or are you also looking into other options to end the process faster?
Yeah, as I said before, I cannot comment this further, but our ambition is to finalize this during 2024. Regarding these disputes, of course, we do everything we can to finalize those as fast as possible also.
There is one question connected to the strategic assessment or when we communicated that the name change, potential name change in connection to the strategic assessment. What are the remaining considerations to complete the name change to Lindex Group? When might a name change take place?
First of all, such a decision has not been taken yet. So there is a manner of doing this. And if this would be taken, it would be then on the annual meeting that we plan to have in March. But we will need to come back with that and also an agenda for that meeting. And this we will do later on in February.
Thank you, Susanne. Then there is a question going to Annelie. Both financial items and taxes looked abnormally high in Q4. Can you open what was behind these, and what kind of levels should we expect on those in 2024?
Regarding the financial costs, it's impacted by the IFRS 16 calculations, where the interest part of that plays a role. That's why the financial costs are a bit higher. It's also related to that we also have this new RCF in place. Looking into the tax side, we can see that we have a deferred tax that's impacting quite heavily in the tax. That belongs to the Estonian part. That's the reason why.
Yes, thank you. Then we have a guidance-related question. Your guidance indicates flat EBIT midpoint, while you said you aim to improve Stockmann's positive EBIT. Does this indicate that you see Lindex earnings going slightly down in 2024?
Maybe I can take that one. As we have stated in the market outlook, it is a rather difficult situation. We think that it will continue to remain challenging also for 2024, related to high interest rates, inflation that also are holding back economic growth. The retail sector might also be affected by lower consumer demand. We have had a careful look at this. We believe that the guidance that we have set is appropriate of what the beliefs are then for 2024.
Yes, thank you. Then we have: Could you see that Stockmann division can be profitable after rental costs in the medium term?
I can take that, yes. Yes, that is our financial target as well in midterm, yes.
Okay. Then related to the timing of our Crazy Days, you said autumn Crazy Days in 2024 will be in Q3 as in 2023. But wasn't it in Q4 in 2023, as you just said, that it supported the Q4 figures?
Yes. I'm sorry about that. Yes, it should, of course, be. It was in 2020. It was in Q4 2023, and we plan to have it in Q4 2024 as well.
Yes, so clarification on that. And then we only have three more questions. So speaking about Lindex's new sales channels, so do you see TikTok as an important channel contributing to sales?
I wouldn't say that maybe that is on the first top of the agenda for making sure that we have the growth that we have in our plan for 2024, but we are looking into several channels here. And that is related, as I also said, more to the business-to-business setup as well.
Yes, thank you. Then we have a follow-up question on the earlier one. Is IFRS 16 depreciation part of lower if they are up in financials? That is a continuing question to Annelie's earlier.
Yes. Well, the IFRS bookings, it's affected by quite many different things. So it's both how long the lease terms are and also the interest-bearing element within this. But if compared to last year, we can see if we compare the exactly same, yes, that would have been the case in that case if all lease liabilities would have been as long as it was during last year. So yes.
Good. Thank you, Annelie. And then we have one final question, and this then goes to Susanne. Share price has risen over three times under your regime. So congratulations. What is the main reason or secret of your success?
Okay. Thank you for that question. I think that it is always a team effort of what we have achieved so far. Hopefully, what I believe and what I think maybe the market is appreciating is that we have a clear strategy, but also that we have proven and been driving results both in terms of revenue increase and that we have been able to improve the profitability over the last couple of years.
Thank you, Susanne. Then we have got one more. So traffic to Lindex.com has decreased during 2023 year-on-year. What were the reasons for this, and how are you planning to increase traffic to meet your goals regarding digital sales?
Well, I cannot really comment the traffic, the exact numbers here, but what we have seen during 2023 is that our sales have increased for our own e-com as well, so the Lindex.com. We have had a positive development. We have seen, even though we got a really strong development during the pandemic, as so many others also had, that also after the pandemic, we have continued to increase our revenue in our digital channels, including then our own e-com year by year. We have a positive trend. Of course, this we will continue to drive. That is also part of our plan.
Thank you, Susanne. These were the questions at the moment. Are we having any more from the audience? Okay, no more questions coming here. So thank you for this part, for the Q&A session.
Great. Thank you, everyone, that have listened in. Very appreciated. We will publish our Q1 result on the 26th of April. We will see you in April at the latest. Thank you, and we wish you a nice day.