Good morning, and welcome to our 2020 release of our annual accounts. With me today presenting is our CEO for Lindex, Susanne Ehnbåge, and our CFO, Pekka Vähähyyppä. Also, for the Q&A part, our chairman of the board, Lauri Ratia, is able to give you answers if related to Lauri. As released today, our full year 2020 has been a challenging year. COVID-19 has had a big impact on our operations. Despite the revenue decline, we've been able to keep our gross margin at the previous year's level. The group's Adjusted Operating Result was positive, close to EUR 5 million. Most important is our cash balance, EUR 152.3 million at the end of December last year. We did earlier this year EUR 250 million in impairment to Lindex goodwill, write-down reported as an adjustment.
You could say we did a quantum leap last year with our e-com sales, and our e-com share of the total revenue in the group increased from 6.3% to 16%. As I said, our cash amounted to EUR 152 million. Lindex revenue was down close to 12%, EUR 507 million, and growth on the online sales was 102.6%. Lindex was doing great job in managing our operating cost, and it was down by EUR 40.6 million. Our operating result was EUR 38.6 million, and here we are with the par with the previous years, and this is a fantastic result in a very turbulent year. The adjusted operating result for Lindex was EUR 39.4 million. In division Stockmann, the revenue was down by 26%, and it was EUR 283 million. On the Stockmann side, the online store growth was 106.9%.
Stockmann also managed the operating cost down close to EUR 27 million, Still the operating result declined EUR 33 million, from EUR 33.7 million to EUR 30.8 million. The Adjusted Operating Result was -EUR 31 million. This is the full year. If we now have a closer look to the last quarter of 2020, the challenging full year ended with the profitable adjusted Q4. The group revenue was EUR 232 million, down still by 18.1% on comparable rates, currency rates. As said, the Lindex impairment EUR 250 million write-down reported as an adjustment. The cash amounted to EUR 152 million at the end of the year. Lindex revenue was down 12.6% in Q4 . It was EUR 140 million. Growth in the online sales was 144.6%.
Operating cost in the Q4 for Lindex was EUR 11 million down. The results declined, basically reached the same level as last year to EUR 15.1 million. Stockmann revenue was down to 6%-7%, EUR 92.24 million. Growth on the online store was close to 100%. Operating costs were down EUR 1.8 million. The result declined by EUR 13.7 million to be 0 in the last quarter. The Adjusted Operating Result was EUR -0.2 million. As you all know, we went through also the corporate restructuring program last year. 9th of February, the District Court of Helsinki approved our restructuring program. This means Stockmann PLC's restructuring proceedings ended. The program implementation started from the February 9th this year.
The program is based on the continuation of Stockmann's department store operations and the sale and the lease back of the department store properties located in Helsinki, Tallinn, and Riga, and the continuation of Lindex business operations as a fixed part of Stockmann Group. The duration of this program is eight years. According to the program, as said, we will sell the properties in Helsinki, Tallinn, and Riga, and we'll lease back the same properties with the aim to repay the secured restructuring debt. The 20% of the unsecured restructuring debt will be cut or converted to equity. The remaining unsecured restructuring debt will be paid during 2022-2028, or it can be converted to a new secured five-year bullet bond. Half of the hybrid bond will be cut. The remaining half will be converted to equity or cut.
The program includes also that the company's A and B shares will be combined. Each one, A share will entitle to receive 1.1 billion shares. More information about the restructuring program can you find in Stockmann Stock Exchange release. I'm moving into Stockmann Division. Last year was a challenging year due to the COVID. With this graph, I want to describe to you the changes we went through in last year's different quarters. In Q1 , there was a sharp decline in revenue, started in February. Q2 was partial bounce back during the end of the Q2, and as you can see, Q3 we were facing a roller coaster, how customers were coming back and then again, acting differently.
Q4 in Stockmann Division, we had to try the Crazy Days only in web, it did well in web store, the total campaign was below 2019 results. Christmas period performed close to normal, customer behavior when it comes to Christmas is following the practices we're used to. If I summarize the year, the total revenue decreased by 26%. The revenue in brick-and-mortar declined due to the lack of visitors, at the same time, our online revenue increased by 107%, the share of online revenue grew up to 16% last year versus 6% in 2019. Here again, Stockmann did, in one year's time, a quantum leap to be part of the online business. If we look Stockmann's full-year results, I said already the revenue was EUR 283 million.
The online sales increased by 107%, and the share of sales was 16.7%. Our operating results are negative and disappointing, but as part of the restructuring, we will be focusing on delivering the results this year. Successful launch of our new web store in October was one of the reasons that the Q4 increased on online really heavily. I will come back to that in the next slide. Despite COVID, despite the restructuring, we kept renewing according to our strategy. Renewal in women's third floor, natural cosmetic departments in Helsinki flagship, but also renewals in Tapiola, Tampere, and Jumbo. We launched several services, gift services, virtual fashion services, and beauty advisors during the difficult COVID times. Same time we launched over 70 new designer brands and brought to the market two new collections, as an example, Essentiel by Stockmann.
The Q4 in Stockmann, the revenue was EUR 94 million. It was down by 26%-27%, the key reason for the decline was the ongoing coronavirus situation. The online growth in Q4 was close to 100%, the share of online was 21.5% for the Q4 versus 2019, it was 8%. This is very much thanks to our new web store that was launched in October. We were able to keep our gross margin at the same level as previous year. The small decline is affected mostly from the rental incomes from the tenants. The operating costs in this quarter were down by close to EUR 2 million, it was lower personal cost in group functions and so on. The operating result was slightly negative, but clearly below last year.
How do we see the future and moving forward in Stockmann? We will continue developing and taking actions to drive our customer centricity, delivering the financial commitments. We will be focusing on a successful execution of this restructuring program according to the program. As I said, the implementation has started. We will focus on our strategic investments, digital development. We will be working on our customer loyalty and inspirational environment. The strengthening of the omni-channel capabilities and to ensure the seamless service across channels is crucial for this year. We will keep developing the inspirational and sustainable premium offering, continuing newness and services in all channels, and we just announced the cooperation with Relove that will be visible in Helsinki flagship later this spring. We will continue implementing our cost efficiency measures as part of the restructuring program. Now I would like to hand over to Susanne. Susanne, please.
Thank you, Jari. I would like to start to show you this graph that gives you a good picture of Lindex development during the year. We started the year with continued strong sales growth and a strengthened result in both January and February, met unforeseen challenges and the situation quickly changed. COVID-19 really challenged our industry with several restrictions impacting our production and supply chain, reduced store traffic, and closed stores in the majority of our sales markets. At one point, 15 out of 18 markets were closed. We quickly implemented fast and effective cost saving actions to meet the COVID-19 effects already during the spring and in order to future-proof a resilient Lindex with a lower cost structure, we also launched a cost reduction program in Q3.
During the Q3, the sales improved, but at the end of the quarter, the second wave of corona was a fact. During the Q4, several of our markets had to lock down again. As we all know, the situation is still challenging. Overall, the total sales decreased by 10.9% in comparable currency rates. If we then take a look at the full year instead, we managed with the right priorities, effective actions, and hard work and commitment from everyone to pare the situation in a really good way. We reached the same operating result for 2020 as the previous year. It amounted to EUR 38.6 million compared to EUR 38.2 million for 2019.
We also managed to keep and even strengthen our margins and our operating costs decreased. In many ways, I would like to describe 2020 as a successful year. Despite all the challenges, we accomplished so many things, for example, our total sales did decrease, though our online sales more than double. In total, our digital sales accounted for 15.6% of Lindex total sales in 2020 compared to 6.6% in 2019. We had a better sales development than the market for all of our Nordic safe countries. Our strongest business areas were kidswear, which almost was on par with previous year, and our more sustainable baby assortment had a successful sales growth. We adjusted quickly to meet the changed customer behavior and to support our strong online growth.
We had a strong growth both in our own channels and also in collaboration with partners. We expanded to China in March by launching our baby assortment on Tmall, we also launched on Zalando in June, added a collaboration with Next in December. During 2020, the situation made us do a lot of actions. We also adapted our order situation, reprioritized and postponed costs and investments, implemented short-term layoffs in all markets according to local labor laws. We initiated immediate rental negotiations with landlords and renegotiated supplier agreements. However, the rental negotiations was not at expense of longer rental agreements. On the other hand, our current average lease contract is now just about two years on average.
During the year, we managed to keep a well-balanced stock. At the end of the year, we had a stock decrease of 9% in value. The pandemic has reshaped how we do a lot of things. To find new solutions and ways of working, being even more flexible and fast-paced, as well as continue challenging ourselves has been crucial for us. We have tested and implemented new sales opportunities and solutions, for example, inspiring live shopping events for our customers as well as outlet stores. Since the start of the pandemic, it has been important for us to continue to be a reliable business partner that we have been during all years.
Instead of canceling orders due to changed customer demands, we started to redesign products, and a good example of a business-minded and creative action to also take care of the liability left over fabrics due to already placed orders. For example, lingerie and kids wool, fabrics was redesigned into premium loungewear, which was exactly what the changed market demands asked for. In this way, we both used the bought material in a smart and sustainable way, but also secure wages and work opportunities for workers in the production. Also this year, we launched Closely, a Swedish underwear and sportswear brand.
By the end of the year, our portfolio consisted of 458 stores in 18 countries, of which 38 was franchising compared to 464 stores previous year. If we take a quick look at the Q4, the revenue was EUR 140 million, down by 11.2% in comparable currency rates. The growth in the online sales was 144%, and the share was 21.9%. Our gross margin increased to 66.1%, and operating costs decreased by EUR 10.7 million, and the operating result was almost in line with previous year. Looking at our way forward, our focus remains on development and actions enabling a strong performance and a resilient Lindex.
We will proceed with our cost reduction program, which will re-reach a full effect by the end of this year. As I talked about last time, this program, in short, is about continue adapting our organization being more agile, flexible, and innovative while securing a lower cost structure. The saving target is to reach SEK 150 million . We will continue our strong digital focus and to grow our e-com sales, focusing on strengthening our omni-channel setup and a new DC set up to enable future growth, looking into new sustainable business models, a continued optimization of our store portfolio, where we have a flexibility to renegotiate and adapt our store network with almost 50% of the stores yearly. Regarding innovation, we will continue developing the Lindex brand and focus on our offerings on our core strengths and heritage.
The successful work regarding our online partnerships continues. We will also now expand to a new market, Malta, which will be a franchise market, and the first store will open later on this month. We are launching a new assortment strategy for our womenswear assortment. It is a more distinct offering for increased clarity and even more online-centric, supporting our e-com growth. We will broaden the assortment with new inclusive activewear, which really complement the comfy wardrobe, seamless super comfy tights and tops. We know the future will bring continued challenges, but also new opportunities and everything at a rapidly changing pace. We have proven that we can challenge ourselves being flexible and fast-paced, and this will become even more important forward and for our continued rebound to be the company handling this ongoing situation in the best possible way. Thank you for listening. Now Pekka will continue. Thank you.
Thank you. Thank you, Ehnbåge. Before going to the figures, I would like to explain some of the changes and other issues which took place last year. One important is that like Jari also explained, Stockmann filed for corporate restructuring in April. In February this year, the restructuring plan was approved by the court, and now we are in the process of implementing the program. When looking at our figures, it's good to remember and take into the consideration that we changed the way how we present our properties.
Earlier, we had presented our properties using estimated market value, and now, in this closing of the books, we present our properties using the historical book value. This change has a big impact on the value of the properties or the presented value of the properties, which went down by roughly EUR 400 million. It has also impact on equity, which went down by some EUR 330 million. When we look at the properties as, sorry, as part of the restructuring program is that, we are going to sell and lease the properties back. In this closing of the books, we are presenting the properties as assets for sale.
The value of the properties, the book value of the properties is roughly EUR 250 million. Like Jari also explained earlier, we did make an impairment of the Lindex goodwill with the amount of EUR 250 million. The remaining value of Lindex in Stockmann consolidated figures is some EUR 370 million. Last year, we also renegotiated in Stockmann division the lease agreements. In connection with that, the value of lease liabilities went down by nearly EUR 160 million, 30%. End of last year, the value of lease liabilities was EUR 370 million.
Looking at the figures, total revenue, like Jari said, last year was EUR 791 million. A bit more than 1/3 of that is coming from Stockmann. Nearly two thirds is coming from Lindex. Geographically, Finland is the largest single market, a bit more than 1/3 , consolidated, Sweden and Norway are nearly 1/2, Baltic and other countries represent 16% of our revenue. We are a fashion company. Nearly 80% of our business is fashion. Cosmetics is important, home represents 7%, home during last year grew. Food, which we have in the Baltics, represents 5% of our total revenue.
Consolidated, looking at the figures, our top line declined by roughly EUR 170 million, down to EUR 791 million. Our gross margin remained strong, 56.1%. If we consider that in euros, our gross margin declined by roughly EUR 95 million because our top line declined this EUR 170 million. We were able to rationalize and save our costs by EUR 62 million, and that helped us to mitigate the impact of result. We ended up with the Adjusted Operating Result, which was EUR 5 million. Last year, it was EUR 40 million, so our profit declined to EUR 35 million.
Considering the fact that our top line declined EUR 170 million, I think we can be quite happy about this result though. Important thing is that our group cash was end of last year EUR 152 million, up EUR 125 million during the year. Looking at key figures, lot of numbers, I'm not going to through them all, begin from the total balance sheet. We have EUR 1.4 billion money tied in our business. Less, it went down from previous years, which when it was EUR 1.7 billion.
One re-reduction, which is, which I already mentioned, happened in lease liabilities. Currently, lease liabilities were EUR 370 million, when it last year was EUR 530 million. We also did impairment and in Lindex, which we explained, and other depreciations, which amounted EUR 380 million. When we consider that our CapEx was also down by EUR 15 million, and the amount was EUR 20 million, it's evident that the balance sheet amount of money in our balance sheet goes down.
Here, I think it's good to highlight also that cash and cash equivalents were EUR 152 million, and also the cash flow from operating activities improved and was nearly EUR 150 million. There were some. We want to present also our pro forma balance sheet items which in which we have included the impact of this restructuring program. First, is that we will convert 20% of the unsecured debt into shares. That will improve our equity with EUR 24 million and correspondingly reduce our liabilities. Hybrid bond, like Jari explained, will be partly cut and partly converted to equity.
It will in group figures, it will not have any impact on our equity, because according to IFRS, it has been already reported within equity. We have also, in the closing of the books, presented all our liabilities as short-term. Now, when the restructuring program is confirmed, the non-secured lease non-secured liabilities will be presented as non-current liabilities. Last but not least, we have negotiated one more lease agreement during January. That will be presented in Q1 figures, but that will also reduce our non-current lease liabilities.
This we wanted to share with you, and this will be visible in the Q1 figures in due course. Now moving on, we see that the uncertainty in the global economy is expected to persist throughout this year, and the COVID-19 pandemic will have significant impact on the economy across the world. Until the virus situation is in better control. In our retail market, it is expected to remain challenging due to the changes in consumer behavior and confidence, which are also affected by the virus situation. In Stockmann division, we will begin to execute the restructuring program this year, and Lindex will continue to drive efficiencies and explore new growth opportunities.
Considering guidance, due to the reasons which we explained, the outlook is still unclear, and we will provide new guidance when the market, the visibility improves during this year. With this, I would like to open the area for questions and answers. Thank you.
Hi. Yes, and the first question's from Morten from Storm Capital. When can we expect that the hybrid will be converted to Stockmann equity?
We are working on that. I think within this quarter, we pretty soon the conversion will take place. It will require the prospectus, and it will take place after the annual general meeting will be held in say April, early April. We are working on that, but we'll come back to that when we have a precise timetable on that.
A question from Anni Lassila, "How have sales developed during the Q1 this year?
Q1 this year.
Could you repeat?
How have the sales developed during the Q1 this year?
Well, as we all know, we are currently coming in Finland to a situation where partial lockdown with the restaurants is happening. It is clear that we will see a similar path as we saw last year. When it comes to Lindex, would you like to, Susanne, give an update of the Q1 lockdowns in Lindex markets?
Sure. Yes, as Jari said, we have lockdowns in some of our markets. It's currently about 5, 6 markets that we have stores that we cannot have open, but we also can see that we have restriction in the other markets as well, and of course, that is impacting the customer traffic to our stores. On the other hand, the online sales are improving in a very good way.
Is growing very fast. Adjusting to the situation, it varies, customers, they are visiting more than in the worst times, the stores, but clearly focus is now on online sales.
To Susanne, you were congratulating to Lindex on strong results during this year. Can you say what has been the situation with store closures due to the lockdowns during Q1 , which we already answered partially? How do you see Lindex store network developing during 2021?
Yes. As I said during the presentation, we do have the flexibility to act when needed, and the current lease contract is about 2.1 years on average. What we expect to happen is that we will continue to have a nice but also tough dialogue with our landlords, depending on that outcome, that will, of course, can have an impact on the store network. I do not believe that we will see any major changes during 2021.
A question from Jutta Rahikainen to Pekka maybe. Is the EUR 3,071 million now a new normal level for lease liabilities in 2021, or do you still have lease discussions ongoing with property owners?
No, we have renegotiated the Stockmann division's leases. This is, this is say current situation. Like, like Susanne explained, Lindex is also developing network, but no material changes. However, when we divest these and sell and lease back these properties, this will have a impact on the lease liabilities in Stockmann division. At this point, the existing leases we have been renegotiating.
Yes, Lauri we are continuing, can you say anything about how the property divestments are proceeding?
Proceeding as planned.
Pirkko Tammilehto, Kauppalehti, have you already found buyer to your premises? Can you tell anything about the timetable?
Like I said, it's proceeding as planned. There has been interested parties contacting, but proceeding as planned. We will come back, when we have something practical to say.
That was the last question so far. Maybe we wait a couple of seconds if some new questions will arise.
If no more questions, we would like to thank you for participating this event, of course, we welcome to our stores, both online and brick-and-mortar. Please keep shopping with us. Have a good day.