Good morning, everyone. I am Susanne Ehnbåge, CEO of Lindex Group, and I would like to warmly welcome you to our webcast. Today, we will walk you through the key highlights of our financial performance of the period April to June, and I'm joined by our CFO, Henrik Henriksson. Let's begin with taking a look at today's agenda. We will start with the highlights of the second quarter, business updates for our two divisions, and then look at the financials more closely. We will finish with an update on our way forward, and after our presentation, we will have time for your questions. Let's begin, our business update for the Lindex Group on the next page. We will start by looking at the consumer confidence indicator, followed by the key messages for the quarter.
On the consumer confidence on the next page, we can see that the second quarter performance was shaped by a continued challenging market environment. Economic uncertainty remained high, driven by geopolitical tensions and risks of global trade disruptions. This kept consumer confidence low across our key markets, despite some signs of recovery towards the end of the quarter. As shown on this page, the consumer confidence indicator declined slightly in Finland, while in Sweden and in Norway, it showed early signs of improvement. In Sweden, confidence dropped sharply in April, but gradually recovered. Consumers were slightly less pessimistic about the economy, though concerns about household finances and unemployment remained. In Finland, confidence stayed weak throughout the quarter, influenced by inflation and job insecurity. In Norway, sentiment remained low, but improved steadily through the quarter, while concerns about personal finances persisted. Consumers became more open to make larger purchases.
In summary, consumer behavior remained cautious, but we saw encouraging signs of improvement in Sweden and Norway by the end of the quarter. Continuing with our key messages, the fashion market remained volatile throughout the quarter, impacting both divisions. A delayed and cold start to summer weakened the demand for seasonal fashion. Despite this, both Lindex and Stockmann outperformed the overall fashion market in our main markets. Lindex delivered positive revenue growth with strong momentum towards the end of the quarter. I am pleased to report continued profit development for the Stockmann division. This marks the fifth consecutive quarter of improved results. Operational and organizational efficiency measures are clearly paying off. The rolling 12-month adjusted operating result is now at -EUR 1 million, showing that we are moving in the right direction.
While the year started off challenging, we're seeing gradual improvement in consumer confidence and continue to stand by our full-year guidance. The ramp-up of Lindex's new omnichannel distribution center is progressing well. The next step is to handle e-commerce orders through the new warehouse. In June, we settled the last remaining dispute with LähiTapiola, which enabled us to move forward with ending the restructuring program. At the end of June, the Helsinki district court approved this step. Yesterday, as you might have seen, we announced a directed share issue in accordance with the restructuring program and also filed a listing application related to the settlement with LähiTapiola. Once all agreed actions between the parties have been implemented, the program supervisor will prepare a final report, officially concluding the restructuring. We currently expect the report to be completed during this quarter.
Finally, our strategic assessment to refocus the group's business on Lindex is ongoing. As communicated in June, we continue to explore strategic alternatives for the Stockmann department store business, with the goal of completing the assessment during the second half of 2025. We can now move on to the next page. To sum up our Q2 performance, Lindex Group's revenue for the second quarter was EUR 251.6 million, up by 0.2% in local currencies and by 0.9% in euros, as shown here in the graph. Both divisions were affected by the lower consumer confidence and fashion market volatility, and also a cold start to the summer that dampened seasonal demand. Lindex division revenue was EUR 172.3 million, up by 1.5% in euros and 0.4% in local currencies, with a strong growth towards the end of the quarter and especially in the digital channels. Stockmann division held steady year- over- year.
Fashion declined slightly, with home and food that performed well, and for beauty, we could see a small decrease. The group's adjusted operating result decreased to EUR 22.2 million. Lindex result declined mainly due to a lower gross margin, and Stockmann result improved to EUR 0.2 million, thanks to successful cost efficiency measures. Let's move on to the Lindex division. At the start of the quarter, the ramp-up of our new omnichannel warehouse impacted stock availability and logistic costs. However, revenue improved significantly towards the end of the quarter, and Lindex outperformed the overall market development. We saw strong digital growth, with online sales up +11.6%. Growth was seen across all categories, with lingerie leading the way. Our focus on marketplaces also delivered strong results, and the digital share rose to 20.3%. In total sales, kids' wear remained our top-performing category, closely followed by women's wear.
To expand our lingerie offering, we introduced Delicate Laundry, a refined lace collection combining design, comfort, and fit. The transition to our new omnichannel distribution center continued at full speed. All fashion items are now handled through the new warehouse, and e-commerce ramp-up is progressing steadily. We are also advancing our digital and circular transformation, key to our growth and relevance. The digital store program is in its final phase, with all stores upgraded to the new point-of-sales system, except for our new store in Denmark and stores in Slovakia and Latvia, which will be completed during the early fall. On the sustainability front, we are focused on transparency and traceability in our supply chain to prepare for the digital product passport and strengthen responsible sourcing. We also made progress in circularity. 75% of all Lindex products now contain partly recycled fibers, up from 55% last year.
Empowering women remains central to our mission. This quarter we highlighted menstrual health through partnership and initiatives like Lindex Award, presented to skier Ebba Andersson for her openness about menstruation in sports. We have also partnered with WaterAid to bring this topic into the spotlight at Almedalen, emphasizing its importance for gender equality and development. Positively, Lindex continues to be ranked number one in women empowerment across all key markets. Finally, we are pleased to report continued growth in the number of active customers during the quarter. Let's move on to the Stockmann division. Despite a challenging market, especially in fashion, Stockmann improved its result for the fifth consecutive quarter, thanks to continued efficiency measures. Notably, Q2 was the first positive second quarter in many years for Stockmann. Stockmann's fashion category outperformed the overall market, which saw a clear decline in our home markets.
Additional proof points of improved competitiveness include continued digital sales growth and revenue growth in the Baltics. A highlight this quarter was the exclusive launch of Chanel Beauty in Stockmann Finnish e-commerce, making us the only omnichannel retailer for Chanel Beauty in Finland, a move well received by our customers. In May, Stockmann's Crazy Days e-com was recognized as one of the top three online stores in Finland at the e-com summit and awards in Helsinki. In line with our strategy, we continue to strengthen the Helsinki flagship store as an inspiring retail destination. For example, artist Averagekidluke created and streamed music live from our shop windows, attracting Gen Z audiences. We also partnered with MET and Chanel for a high-end champagne tasting in the same space. In May, we launched Movement's 80th anniversary celebrations with exhibitions, family events, and product collaborations, driving increased footfall.
We continue to differentiate through curated offerings, including new categories like men's jewelry featuring brands such as Skultuna and Tom Wood. We're pleased to see a clear increase in both active and new loyal customers. Despite the tough market, the Crazy Days campaign in April performed on par with last year. Finally, as previously communicated, the Stockmann EastEast department store in Helsinki closed at the end of June. The closure has no material impact on profitability or the group's financial position. The personnel impact was minimal, with many employees continuing in other locations. Looking at the next page, we keep our guidance for 2025. We expect the revenue in local currencies to be in the range of 0% to + 4% compared to 2024. The group's adjusted operating result is estimated to be between EUR 70 million - EUR 90 million. As said before, foreign exchange rate fluctuations may have a significant effect on the adjusted operating result. With these words, I would like to hand over to Henrik, and we will move on to the financial update.
Great, thank you, Susanne. Now, let's look more closely into the second quarter. The current slide that you see in front of you presents the Lindex division revenue and adjusted operating result for the second quarter 2025. If we start by the Lindex division, the revenue came in at EUR 172.3 million versus EUR 169.7 million previous year. In local currency, the revenue increased approximately by 0.4%. Revenue from physical stores declined from previous year by 2.1%, while digital channels showed a strong increase of 11.6%. The share of business now, digital revenue accounted for 20.3% versus 18.2% previous year. Looking into the quarter, as Susanne already mentioned, it was impacted by fashion market volatility and cautious consumer sentiment.
Despite this and the challenges posed by a late and cold start of the summer, the Lindex division revenue improved towards the end of the quarter, and the division revenue grew from previous year by 1.5%. Gross margin declined to 64.5% compared to previous year at 67.5%, and this was due to increased promotional activities responding both to the price-driven competition landscape and the higher inventory levels the division has. Looking into our comparable operating cost, it increased slightly to 69.6% compared to last year, 68.8%, so an increase of 1.3%. This is mainly impacted by an increase in goods handling cost, partly supported by the growth from the division's digital channels. Our adjusted operating result decreased significantly to EUR 22.8 million compared to EUR 30.8 million, and this is mainly due to the decrease in gross margin.
Jumping over and looking into the Stockmann division, this slide presents the division's revenue and adjusted operating result for the second quarter. Stockmann division's revenue came in at EUR 81.7 million compared to last year's EUR 81.9 million, and it was on par with the comparison period. The quarter was also here impacted by the fashion market volatility and cautious consumer sentiment. We can state that the food and home categories contributed well to the division's revenue development, whereas the fashion category declined slightly due to the lower demand affected by the late and cold start of the summer season. However, Stockmann's fashion category overperformed to the overall fashion market that experienced a clear decline in the division's home markets. The digital sales grew by 3.5% and accounted for 15.9% of the total revenue compared to 15.3% previous year.
Gross margin for the period ended up at 44.2% compared to previous year 44.4%, and it was impacted by the increase of promotional activities responding to the cost-conscious consumer sentiment and the price-driven competition landscape. Adjusted operating result improved to EUR 0.2 million, which marked the fifth consecutive quarter of Stockmann's result improvement and the first positive second quarter in many, many years. It continued successful efficiency measures contributed to this development. Jumping over to the next slide, we would like to visualize the division-level changes and their impact on the group revenue and adjusted operating result during the second quarter. The left-hand side shows the changes in revenue, which ended up on an increase compared to the comparison period on group level. Here, Lindex division contributed by EUR 2.6 million. Looking into Stockmann, they decreased slightly with EUR 0.1 million, and this is driven by the overall decline in the fashion market.
Adjusted operating result came in at EUR 22.5 million on group level, and here we can see that the Lindex division contributed with a decline of EUR 8 million, and this was mainly due to the declining gross margin, while the Stockmann division contributed with an increase of EUR 0.8 million. This is explained by the successful efficiency measures that the division has carried out during the quarter. If we look at the group key figures for the second quarter 2025, we can now state that the revenue increased by 0.9% compared to the comparison period and that the adjusted operating result decreased by EUR 7.3 million. The operating result came in at EUR 25.5 million, and the result was positively impacted by the partial release of the restructuring program related to the provision made in 2022. The net result for the group came in at EUR 13.1 million compared to EUR 7 million previous year.
The group's gross margin declined significantly to 58% compared to 60% in the comparison period, and earnings per share increased to EUR 0.08. Looking into the profitability of the division, also over time, the decrease in revenue and higher operating costs have caused a slight decrease in the Lindex division adjusted operating profit. However, in the long term, the Lindex division adjusted operating result has more than doubled compared to pre-pandemic levels. If we were to look further back, the improvement would have been even, even better. Stockmann division have made significant improvements in profitability compared to previous year, which we are very happy about. We have to go back to the beginning of 2020 to find similar 12-month rolling adjusted operating result for Stockmann. Let's spend a few minutes reviewing our operating free cash flow development and capital expenditures for the first six months.
If we start by looking into the second quarter, the Lindex Group's operating free cash flow, excluding the investment in our omnichannel distribution center, was EUR 40.1 million compared to EUR 27.7 million previous year. This is driven by a decrease in working capital due to our accounts payable and lower inventories. Despite the improvements in Q2 compared to previous quarter, inventories at the end of the quarter are still higher than previous year. It ended up on EUR 183 million versus EUR 173.8 million. The elevated inventory level for the Lindex division is mainly driven by this omnichannel distribution center ramp-up effects that we have had during the first six months, combined with lower demand due to the late start of the summer season. In regards to the Stockmann division, inventories declined, and that's due to good inventory management.
During the reporting period, capital expenditure ended up at EUR 15.9 million versus last year EUR 16.9 million. This was mainly used for digitalization projects and omnichannel developments in both divisions. By the end of June, approximately EUR 99.5 million of the total omnichannel distribution center investment of EUR 110 million has been paid. Let's look into a closer look at the cash position for the group. This slide and graph present the changes in the cash position per item from the beginning of the year to the end of June in relation to the comparison period previous year. Cash and cash equivalents ended up at EUR 85 million compared to EUR 103.1 million at the end of June previous year. Change in net working capital had a negative impact on cash flow with approximately EUR 11 million, mainly due to the increase in inventories within the Lindex division.
Lease payments also increased slightly compared to previous year, while investments remained on previous year's level. Looking into specifically the second quarter, it generated a total cash flow of EUR 32.5 million versus last year EUR 19.4 million, while the first six months generated a minus of EUR 29.7 million compared to EUR 34.4 million previous year. We can go to the next page, and here we try to illustrate how the Lindex Group's financial position has improved during the latest year, which it has and will continue to enable future growth. In the graph, you can see the net debt has remained on a good level, excluding the IFRS lease liabilities. The interest-bearing net debt was positive at EUR 1.1 million compared to EUR 30 million. Equity ratio improved further and reached 62.2% excluding IFRS items and 30.3% including IFRS items. The lease liabilities under the IFRS 16 reporting standard ended up at EUR 598.3 million.
The Lindex division's lease liabilities decreased by EUR 6.5 million, and the Stockmann division decreased by EUR 9.3 million. The lease liabilities related to Lindex division were at EUR 280 million versus EUR 286 million last year, and the Stockmann division were at EUR 318 million versus EUR 327.3 million previous year. Interest-bearing liabilities stood at EUR 83.8 million. To summarize Q2, we can say that revenue development from the Lindex division and the result improvement for the Stockmann division in a challenging market environment, we cannot be satisfied with our financial result except the Stockmann division's improved adjusted operating result. We continue our determined work to serve our customers in the best possible way with a fantastic spring and summer collection. At the same time, we'll secure a good progress of our strategic projects, including our new omnichannel distribution center facility, gearing our operations for future and improved profitability. With that, I'd say thank you and hand over to Susanne, who will pave our way forward.
Thank you so much, Henrik. Now let's take a look at our way forward, as Henrik said, starting with Lindex. For the Lindex division, we focus on accelerating on the next page, please. We're focusing on accelerating both organic and new growth while continuing our transformation into a more sustainable business and decoupling costs from growth by continuously improving efficiency. On the next page, looking ahead, our top priority is to accelerate global growth efficiently. Our key focus is the continued ramp-up of our new highly automated facility in Alingsås, bringing it into full operation and also unlocking the benefits of having our unified omnichannel warehouse. We aim to drive growth in existing markets while also expanding into new markets and partnerships. As earlier mentioned, we will finalize the digital store program and point-of-sales rollout and continue digitalizing our supply chain.
Most of our key suppliers are now working in our new PLM system. While integration and upskilling are ongoing, we are confident that this will enhance both efficiency and transparency. We will also remain committed to our sustainability transformation, and our focus is on reducing CO2 emissions, advancing material transformation, and also strengthening women's position in the supply chain through our women empowerment program. Looking at the Stockmann division's strategy, our key target is to ensure profitability and future growth. The Stockmann division has four strategic areas, which are to elevate offering by increasing focus on premium and luxury, grow and leverage loyal customer base, and also optimize omnichannel performance and improve operational efficiencies. All these contribute to both profitability and growth. Looking ahead on the next page for Stockmann, we remain focused on profitability improvement as a key part of our strategy execution.
This will be achieved through systematic progress in operational and cost efficiency, while continuing to invest in competitiveness with the further potential in digitalization, technology adoption, and enhancing organizational and process efficiency. Stockmann will continue to differentiate through a curated offering of customer favorites and exciting new brands, while improving profitability through active inventory and supplier management. We will also accelerate marketing automation and personalization to further engage our loyal customer base. Our efforts to strengthen e-commerce and omnichannel growth will continue, with a strong focus on improving the customer's experience across all channels. Renovation in the Turku and Riga department stores are progressing well and will be completed in the second half of this year, reinforcing Stockmann's position as a premium retail destination. We're also launching new strategic partnerships to boost customer excitement and also profitability.
We have Vepsäläinen, a premium furniture and home decor brand that will join us at multiple locations and online, and also a new Crème de la Crème luxury perfume department that will open in Tallinn, following the successful launch that we have had in Riga. By that, we are now opening up for questions.
Thank you, Susanne and Henrik. We have got plenty of good questions, so let's get started. Susanne, considering the revenue development in Q2 and the first half year, do you expect to meet your guidance?
Yes, in our 2025 outlook, we have already taken into account the expected challenging and also uncertain market environment that we have also seen, particularly then during the first half of the year, which have had a continued effect on the consumer sentiment. Looking ahead to the second half, we expect a gradual improvement in consumer confidence and also economic recovery. Though this may, of course, vary across our markets, this in combination that we internally will have a smoother logistic flow as our new omnichannel distribution center becomes fully operational, and also that we believe that we will have a growing customer interest in our new and exciting autumn and winter collection across both divisions that will also contribute to our growth.
Thank you. We have a question regarding the LähiTapiola settlement. This could go to Henrik. How did the LähiTapiola settlement impact the Q2 financial results?
First of all, we don't disclose any specific details of the agreement. However, the group's operating result increased to 25.5% versus EUR 20.3 million. Of course, this improvement was impacted by this release of a partial restructuring program related to the provision May 2022. The compensation agreed upon in the settlement was treated as a restructuring debt and did not affect the group's adjusted operating result. During the quarter, no material changes in lease liabilities were reported. That's how the impact was on our Q2 financials.
Thank you. We have two questions related to the fashion market, and we combine that with the revenue development of our divisions. The first part of the question is, how did the fashion market develop in Q2 and were there differences between the markets, for example, Sweden, Finland, Norway? If you, Susanne, can then elaborate also on Lindex division's revenue growth versus the fashion market development.
All right, I will try to do that. What we can see from this second quarter is that if we start with Finland, Finland experienced mainly a negative development, where we could see, especially in May, April, and June, we were at almost par with the previous year. Then May faced a strong decline of - 11%. Looking at Swedish data, we have a - 8.3% going from that level up to actually + 10.2% here in June. In Norway, we only have data for April and May at this point, and both these months had negative development in the market, in between - 2% to - 6%. As we have informed here in the report, we have seen a positive development in local currencies.
Therefore, we can say that we have been able to improve a little bit better than we have seen the market develop during these three months. I think we can say that all this market has been negatively impacted by the colder weather, especially in May, and also what we have seen in the consumer sentiment over the last couple of months.
We have a question regarding the strategic assessment to Susanne. Is there any real progress in figuring out the Stockmann department store's future yet? What kind of progress? How would you comment that?
Being able to leave this lengthy restructuring program behind us in the near future is a positive milestone, as it has impacted both the group's business operations and also the ongoing strategic assessment. The Board of Directors of Lindex Group has been carrying out an extensive investigation of the strategic alternatives for the Stockmann department store business. As you know, the strategic assessment is ongoing. As communicated earlier, we are looking into strategic alternatives for the Stockmann department stores, and we will provide an update on this assessment when we can.
Thank you. We have a trade-related question about the U.S. tariffs. Susanne, please provide an update on potential impacts of U.S. tariffs on our business.
What we can say here, we don't see yet any direct impact on our business for that reason. Of course, indirectly, it could lead to impacts impacting consumers in other ways and therefore their ability to spend. For now, we don't have any direct impacts on our business.
Thank you. We have several questions related to the omnichannel distribution center. First, when are you expecting to be complete with the ramp-up of the new warehouse so that all e-com is also running through that?
We are currently now entering that stage. First of all, looking at the new omnichannel distribution center, we now have all the fashion garments located in Alingsås, which is a great step. We have now started to send the first orders for e-com to test that. That now will increase after the summer with that both test. The idea is that we will be in full operations also with the e-com during 2025. We expect to see the savings that we want to have from this new warehouse and also the efficiency and the improved customer offering that will come with that. That will then happen from 2026 and onwards.
Okay, we continue related to the omnichannel distribution center. How much of the expected annual cost savings from the new omnichannel distribution center has been achieved to date?
I mean, to date, we don't have any savings that we can really see for now. I would rather say that we have been working now with, again, several warehouses at the same time, needed to have our personnel in more locations than earlier. This also comes with a project like this. That was something that we expected would come. The improvement will come later. Of course, there could be a gradual increase in those during the end of this year. As we have stated before, we expect a full improvement to come in 2026.
Please provide an update on whether the temporary supply delays related to the ramp-up of the new omnichannel distribution center have persisted this quarter in Q3.
Yes, I can take that one. As we said in Q1, we experienced this. We also had impacts of that in the beginning of Q2 that we had a lower stock availability. I would say it was especially impacting our stores. When we were able to push it out to our stores, they also received a lot of garments to handle at the same time. Yes, we have had impacts, I would say, impacting to some extent the revenue, but also leading to a bit of a higher cost handling these goods.
A bit related to this and then to the inventories of the Lindex division, were the inventories in Lindex normalized by end Q2, or is there a pressure for continued promotions in early Q3?
In Q2, the Lindex division faced continuing, I would say, high inventory levels caused by both cautious consumer behavior in combination with this omnichannel distribution center ramp-up effects. We can see that the stock level for Lindex division was slightly lower than we had in Q1. It's moving in the right directions. We have taken now active measures also to manage our inventory levels, and we expect the inventory levels to normalize by the end of this year for Lindex. A gradual approach to this.
Very good. We stay still in Lindex and related to the promotions. Were the promotions in Lindex mainly a reaction to the weak spring-summer start, or was there elevated promotions throughout the quarter?
I think mainly it was related to the weak spring and summer start, and added to that, the demand from the consumers was a bit lower than we expected from this quarter, and also that we have had these impacts from the omnichannel distribution center ramp-up. All this together led to that we increased our promotional activities during Q2. We can also say that, of course, the competition and many other fashion players did the same.
Yes, thank you. We still stay in the Lindex division, and a question related to our in-store revenue and digital revenue development. Why do you think there was a divergence in the growth of Lindex division's in-store revenue compared to the digital revenue?
What we can see a difference here between the channels for this quarter is that the impact of this stock availability was impacted more here in our stores compared to our e-com, where we had a higher stock availability during some parts of this second quarter. Those were, I would say, the differences from a Lindex perspective internally. Of course, we can also have an external point of view of this that maybe more customers are choosing digital channels at the moment. That could also be a reason for this.
Yes, and then still about the Lindex division sales, do you see sales moving from Q2 to Q3 because of late summer?
I think it's hard to say, but I think you could hear from the saying in the report, we could see a strong delivery in June where the revenue really took off. I think that is giving a good hope and view that that revenue will also continue for the coming months here during the summer as well.
Thank you. Let's go to the financial targets of both divisions. What is your assessment on how both divisions are trending towards the financial targets set at the 2023 Capital Markets Day?
All right, maybe I should take that one as well. For Stockmann division, just to remind ourselves what the targets are, that we want to grow in line with the market growth in the mid-term. I think here Stockmann is fairly on top of that target. We also want to reach a positive free cash flow in the mid-term. As I said in today's presentation, we are getting close to having a rolling 12-month positive result. We are now at - EUR 1 million. We are heading in the right direction. At the same time, we're also saying then a 5% adjusted operating margin in the mid-term. Of course, first step is to reach a plus margin, and then the next step is to then head for the 5%. As for Lindex, we have a target to reach 3% - 5% annual local currency revenue growth in the mid-term.
This has been slightly lower, as we can see now in the beginning of this year, but we expect a bit more from the coming six months this year. The digital share of revenue growth, we have a target to reach 30%. We are increasing that, I would say, quarter -by -quarter. In the long term, that is then more in the future, we want to reach the 15% adjusted operating margin. This then leads both the revenue growth that we are expecting and that we will also have the, for example, new omnichannel distribution center and all these digital programs in place that will support growth and also efficiency.
There is another question that relates to this topic. Regarding possible cost adjustments, have you done or have you started any cost adjustment measures for this year, given the weak first half year, but at the same time unchanged full-year guidance?
Naturally, when the revenue is not as strong as we expected, of course, we have taken cost adjustment measures in both divisions. Here, looking also at the comparable cost situation for the group, it is at the same level as the previous year. Yes, we are working on those as well.
A question to Henrik regarding lease costs. Please explain why lease costs continue to increase and whether these are expected to stabilize at some future point of time.
Yes, lease payments increased slightly compared to the previous year, and this is quite normal due to lease indexations. It's also, especially in the Lindex division, we also have an FX impact to consider. I think it's worth to mention, you have two components that really impact this. This is if it's fixed leases or if it is turnover-based leases. Of course, we can expect changes in lease payments going forward, depending on how the indexation turns out and also how our revenue performs going forward.
Thank you. We have two questions regarding Lindex. How is market entry into U.K. stores performing, Susanne?
Yes, good question. We have recently opened new stores there, and we're super pleased that we have expanded our presence with secondhand, as the second kids' wear store in the U.K., located in Battersea Power Station. That is our newest store. Here we see a strong and growing demand, really, that the customers are appreciating our kids' wear merch. We see great potential in the U.K. market and really look forward to our expansion here. We continue to evaluate new opportunities to strengthen our presence and meet customer demand also in this market.
We stay still in the Lindex division. There's a question if the majority of digital growth is coming from Lindex division's own platforms or from third-party platforms.
I would say the majority of our digital sales is still from our own channels, but we can see that the partnerships are growing really fast.
Henrik, are you expecting any support from the weakened U.S. dollar to your gross margin during the second half of the year?
It is correct that there has been a positive development on the U.S. dollar for us. That effect we expect towards the end of this year and contribute also to the beginning of 2026.
Yes, thank you. I think we stay also here with Henrik. Will ending the restructuring during the third quarter mean that you will also redeem the outstanding senior secured bond in Q3 this year? If so, how would you fund the redemption?
If I understand the question correctly, first of all, I think we would like to say that we're very happy that we are now seeing the end of the restructuring process. That will lead to possible refinancing going forward during the autumn. I think the bond that we're talking about has maturity next summer, and we will come back to how we're going to address that situation when we have more news to share.
Thank you, Henrik. This was now the last question that we have received to the chat. Do we have anything else from the audience you would like to ask, Susanne or Henrik? No further questions coming here.
All right. Thanks a lot for your very good questions. As always, you can always be in touch with our investor relations via email if something comes up later. We will publish our Q3 results on the 24th of October. By that, I would like to thank you, and I wish you all a very nice summer.