A very warm welcome to our webcast today, where we will walk you through the key highlights of our financial performance for the period July to September 2025. I'm joined here today by our CFO, Henrik Henriksson.
Good morning.
Let's begin by looking at today's agenda. As always, we will start with the highlights from the third quarter, followed by the business updates from both our divisions. After that, we will take a closer look at the financials. Finally, we will share an update on the way forward for each division. We will also have time at the end for your questions. Let's move to the next slide. We will begin with our business update. We will start by looking at the consumer confidence indicator, followed by the key messages at the group level for the quarter. As you can see on this page, the consumer confidence indicator has started to improve in Sweden and also in Finland, while in Norway, we saw a slight decline during the third quarter.
Although sentiment remains below pre-pandemic levels, the upward trend in some markets may support a gradual recovery in consumer spending going forward. If we continue to the key highlights, Lindex Group delivered improvements in both revenue and also adjusted operating result during the third quarter. We also saw the first signs of recovery in the fashion market, which also supported our performance. That said, the financial performance of both our divisions in the first half of the year was impacted by subdued consumer demand and continued market volatility. In the third quarter, our results were further affected by supply limitations and lower product availability across all Lindex divisions' sales channels. Therefore, we have now specified our full-year guidance. As a result, we have decided, which I will also come back to regarding this guidance update.
I'm also pleased to report continued profit improvement in the Stockmann division, thanks to successful operational and organizational efficiency measures. Stockmann has now delivered six consecutive quarters of improved results. Notably, the rolling 12-month adjusted operating result turned positive, reaching €0.9 million for the first time in many years. This is a clear sign that we are moving in the right direction. The ramp-up of Lindex division's new omnichannel distribution center also continued to progress during the quarter. I will come back to that later in this presentation. Regarding our restructuring program, I am pleased to share that it was completed in August 2025. All agreed actions between the parties were implemented during the summer, and a final report was presented, officially concluding the program. With this behind us, we are now well-positioned to focus on our long-term business development and sustainable growth.
Finally, our strategic assessment aimed at crystallizing shareholder value by refocusing the group's business on Lindex is ongoing. As communicated in June, the Board continues to evaluate strategic alternatives for the Stockmann department store business. The outcome of this assessment will be communicated during the fourth quarter. If we continue to the financial summary, Lindex Group's revenue for the quarter totaled €227.6 million, compared to previous year €222.1 million, which is an increase of 2.5%. In local currencies, the revenue increased by 0.5%. The Lindex division reported a revenue of €165.4 million, up by 3.8% from last year. In local currencies, the increase was 1%. The performance was clearly impacted by lower stock availability during the quarter. The Stockmann division generated a revenue of €62.4 million, which was in line with the previous year.
However, when adjusting for the closure of the department store ETIS that happened in June, and also the transfer of the furniture category to our new partner, Bepselainen, in September, the comparable revenue actually showed a clear increase. Looking at profitability, the group's adjusted operating result improved to €16.6 million, up from last year's €15.8 million. For the Lindex division, the adjusted operating result declined to €20.2 million, mainly due to lower gross margin, increased operating costs, and also higher depreciations, all of which were impacted by the temporary supply limitations. The Stockmann division continued its positive trajectory, improving its adjusted operating result to €-2.6 million. This reflects the impact of our ongoing operational and cost efficiency measures. If we go into the Lindex division highlights, our financial results were impacted by the temporary technical issue that happened in August at our new omnichannel distribution center.
This led to longer supply lead times and also lower product availability across all sales channels, with the main impact occurring in late August and in September. The operations are now stabilizing, and we are returning to normal levels. Despite these challenges, the revenue increased by 3.8% and by 1% in local currencies. The revenue from the physical stores increased by 1.6% compared to last year. In terms of product categories, lingerie was our best-performing category this quarter. This was driven by the successful launch of our refined lace collection, Delicate Lingerie, with a strong focus on design, fit, and comfort, and a presentation that empowers women. We attracted new customers and also strengthened our brand connection. Kids' wear also performed strongly, supported by our Back to School campaign and also well-received autumn assortment. These initiatives helped reinforce our brand relevance and contributed to growth in this key strategic category.
The ramp-up of our new omnichannel distribution center has continued at full pace. All central stock garments are now handled at the new facility, and the old warehouse that was located in Patteille has been closed. The transfer of e-commerce orders handling is progressing well, where we now have approximately 20% of the weekly e-com orders that are now being picked and packed and shipped from the new center. The volumes are also increasing week by week. We have also made solid progress in our circular transformation. We have begun scaling up product traceability as part of our work on the digital product passport. We're also taking a leading role in the upcoming extended producer responsibility legislation and are proud to be one of the co-founders of Textile Pro in Norway.
Additionally, we have been recognized as a leader in Textile Exchange global benchmark, reflecting our strong performance in sourcing preferred materials and integrating sustainability across climate, circularity, and biodiversity. This places us among the top-performing companies globally in sustainable material sourcing. We have also continued to grow the number of active Lindex customers during the quarter, which is a key indicator of our brand strength and also customer engagement. Finally, just after the reporting period on October 2, we opened our first owned store in Denmark. I had the pleasure of attending the opening, and it was fantastic to see the interest from the Danish customers. The response to our assortment and in-store experience was very positive, confirming that our offering resonates well in the Danish market. The opening marks an important step in strengthening our physical presence and brand visibility in the Nordics.
Let's now move on to the Stockmann division, where we focused our efforts on strategic priorities that now continued to pay off. The third quarter marked the sixth consecutive quarter of improving the results, driven by our ongoing efficiency measures. The consistent progress led to a significant milestone that Stockmann's rolling 12-month adjusted operating result reached a plus of €0.9 million, marking the first positive result on a rolling 12-month basis in many years. Looking at the category performance, fashion, food, and home all contributed positively to the revenue development. Our main category, fashion, performed in line with the overall fashion market. We continue to differentiate through our curated offering, launching exciting new brands, collections, and also strategic partnerships. We also saw strong results from our omnichannel capabilities. The digital sales grew by 14%, supporting our strategic goal of enhancing digital commerce as a key driver of omnichannel performance.
Sales development steps were taken during the quarter, including the expansion of our parcel locker service, both in Finland and also the Baltics. This has improved cost efficiency and also enhanced the customer experience and supported growth. A key strategic move was the launch of our partnership with Bepselainen, a premium furniture and home decoration company. Their offering is now available in several department stores as well as online, elevating both our assortment and customer experience. We have also, during the quarter, completed successful renovations in our Turku and Riga department stores, further strengthening our premium omnichannel experience. Customer engagement continued to grow, with a clear increase in the number of active and new loyal customers, as well as the share of revenue. Finally, after the reporting period, we held our Crazy Days campaign, which performed better than the previous year. We can now move on to the guidance.
We have specified our guidance for the full year 2025. We expect the revenue in local currencies to be in the range of 0% to 2% compared to 2024, and that the group's adjusted operating result is estimated to be between €70 million to €80 million. It is important to note that foreign exchange rate fluctuation may have a significant impact on the adjusted operating result. With that, I would like to hand over to Henrik, who will take us through the financial update in more detail.
Great. Thank you so much, Susanne. I will now take you through more closely the third quarter. We will start by looking into the Lindex division's revenue and adjusted operating result for the quarter. The Lindex division ended up on revenue of €165.4 million versus €159.3 million previous year. That's an increase of 3.8%. This is despite the temporary supply limitation that Susanne previously mentioned. In local currency, the revenue increased by approximately 1%. Looking into the revenue from our physical stores, it is also increasing from previous year by 1.6%, while the revenue from our digital channels had a minor drop of 0.6%. The Lindex division's revenue was clearly impacted by the supply delays during the third quarter. Gross margin declined to 62.7% compared to 63.3%. This is mainly due to increased promotional activities through the quarter.
Our comparable operating cost increased slightly to €64.6 million compared to €63.5 million. This was mainly impacted by goods handling cost. Our operating result decreased to €20.2 million compared to previous year €21.1 million. This is due to the decrease in gross margin, increased operating cost, and higher depreciations. If we then jump to our next division, that's the Stockmann division. Here, we're also trying to visualize our division's revenue and operating result for the third quarter. The Stockmann's revenue ended up on €62.4 million compared to €62.9 million, being more or less on par with the previous year. If we look at comparable revenue, excluding the impact of the ETIS department store that we closed in June, and the transfer of the furniture category to the Stockmann division's new partner, Bepselainen, in September, it grew clearly compared to the previous period.
The fashion, food, and home categories contributed well to the division's revenue development. The main category, fashion, performed in line with the overall fashion market that experienced growth in the division's home markets. We're very happy with the digital sales that grew plus 14% and accounted for 9.2% of the total revenue during the quarter. Gross margin improved to 45.5% compared to 45.3% previous year. This is mainly due to improved clearance and promotional sales margins. The adjusted operating result improved to minus 2.6% compared to previous year minus 4.5%, which marked the sixth consecutive quarter of Stockmann's result improvements. If we then look into the next slide, here we're trying to visualize how the division level changes and the impact on the group's revenue and adjusted operating result during the quarter. The left-hand side shows the revenue, which ended up in an increase compared to previous year.
Lindex division increased by €6.1 million despite that the quarter was impacted by the supply delays. The Stockmann division decreased by €0.5 million, and that was impacted by the ETIS department store closure and the transfer of the furniture category, Bepselainen, in September. On the right-hand side, you can see the adjusted operating result. We are reporting an increase to €16.6 million on group level. Lindex division result declined by €0.9 million, and this was explained by lower gross margin, increased operating cost, and higher depreciation, while the Stockmann division operating result increased by €1.9 million. This is explained by successful efficiency measures during the quarter. Looking into the group key figures for the third quarter, we can state that we have a revenue increase of approximately 2.5% compared to previous year. We are reporting an improvement in operating result by €0.9 million.
Looking into our operating result, it ended up on €15.1 million. The net result increased to €1.9 million, and the group's gross margin stood at 58% compared to 58.2% previous year. Earnings per share ended up on €0.01. Let's review the profitability from a more historical perspective. Here we can actually visualize our profitability per division. The decrease in revenue and higher operating costs have caused a slight decrease in the Lindex division adjusted operating result. However, in the long term, Lindex adjusted operating result has doubled compared to pre-pandemic levels. If we look even further back, the improvement would be even higher. The Stockmann division has made significant improvements in profitability compared to previous year, which we are very happy about. The Stockmann division's rolling 12-month adjusted operating result ended up at €0.9 million, which was the first positive rolling 12-month result in many, many years.
Stockmann's focused efforts on the division's strategic priorities continue to pay off as operational and cost-efficient measures improve our profitability. Next, let's spend a few minutes reviewing our cash flow performance and how our capital expenditures played out during the quarter. In the third quarter, Lindex Group's operating free cash flow, excluding the investment in Lindex omnichannel distribution center, improved to -35.5% versus previous year -40.5%. This is impacted mainly by the decrease in working capital as inventories were lower than the previous period. Specifically looking into the inventories at the end of the quarter, the group had €193.9 million in inventories compared to €198.6 million previous year. We are seeing a small increase in inventory when it comes to the Lindex division, mainly driven by the omnichannel distribution center ramp-up. The Stockmann division inventories declined due to good inventory management.
The planned transfer of the Stockmann furniture assortment to the division's new partner, Bepselainen, also contributed to the result on inventory. During the reporting period, capital expenditure ended up at €23.3 million versus €25.2 million. This was mainly used for digitalization and omnichannel development for both divisions. By the end of September, approximately €102 million of the total omnichannel distribution center investment of €110 million has been used. If we then turn to the next page, on this slide, we would like to visualize the changes in our cash position. It shows the cash position per item from the beginning of the year to end of September in relation to the previous period. Cash and cash equivalents total €53.6 million compared to €65.9 million at the end of September previous year. Lease payments increased slightly, while we can see that investments decreased.
The third quarter generated a total cash flow of approximately -31.4% versus -37.2% in the comparison period. If we jump to the next page, here we are illustrating how the Lindex Group's financial position has improved during the latest year, which has and will enable our future growth. Here you can see the net debt has remained on a good level, excluding the IFRS 16 lease liabilities. The interest-bearing net debt was €30.5 million versus €7.2 million previous year. The equity ratio improved further and reached 64.3%, excluding IFRS items, and 31.8%, including IFRS items. The lease liabilities under the IFRS 16 reporting standard landed at €579 million. In the Lindex division, the lease liabilities decreased by €21.6 million. In the Stockmann division, the lease liabilities decreased by €11 million. The lease liabilities related to the Lindex division were €267.9 million. For the Stockmann division, the lease liabilities were 311.7%.
Our interest-bearing liabilities stood at €84.1 million. We can summarize Q3 with a positive revenue development for Lindex and result improvement for the Stockmann division. We're not satisfied with our financial result except for the Stockmann division's improved adjusted operating result. We are taking firm measures to lead our performance towards our target. With that, I hand over to Susanne, who will pave our way forward. Thank you so much for your attention.
Thanks, Henrik. Let's now take a look at our way forward, starting with the Lindex on the next slide here. Here you can see that the Lindex division, we are focusing on accelerating our business growth while continuing our transformation into a more sustainable business and at the same time decoupling costs from growth by continuously improving efficiency. Looking ahead on the next page, our key priority in accelerating our growth journey is bringing our new omnichannel distribution center into full operations. We are making steady progress to ensure stable supply capabilities during the important Christmas sales period. We have therefore decided to complete the final transfer of our e-commerce warehouse operations during the first half of 2026. Our growth strategy remains focused on expanding in both our existing and new markets.
A key priority going forward is to strengthen our presence in Denmark, where we are now active with a localized e-commerce platform, a newly opened owned store, and also a strong partnership with Magasin du Nord. As part of our digital transformation, we are in the final stages of rolling out our digital store program, including the new point-of-sales system. The last two markets, Slovakia and Latvia, will go live at the beginning of next year. This marks a significant milestone in our transformation journey, enabling scalable growth, improved efficiency, and also stronger customer engagement. We have also continued digitalizing our supply chain and also deepened our collaborations with our suppliers. A majority of our key suppliers have now adopted our product lifecycle management system, the PLM.
While integration work is still ongoing, particularly around capability building, we are confident that this will lead to greater efficiency and also transparency across our operations. In terms of sustainability, we remain fully committed to our ambitious goals. This includes reducing CO2 emissions, advancing material innovation, and also empowering women throughout our supply chain via our dedicated women empowering program. On the next page, we have the Stockmann division's strategy, where 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 efficiency. Looking ahead for the Stockmann division on the next page, we remain focusing on delivering consistent performance improvements.
Stockmann continues its dedicated and systematic work on cost and operational efficiency, which is essential to secure a positive profitability trajectory. To support this, the team is further developing the organization to enable efficient and also agile commercial operations, with a strong focus on excellent retail execution and delivering a customer experience that creates lasting impressions. Digital commerce remains a key strategic driver. The team has already delivered strong results, strengthening Stockmann's omnichannel competitiveness. This work, of course, continues to be a top priority. Next week, Stockmann will step into one of the most important retail moments of the fourth quarter, the unveiling of the iconic fairytale window, a cherished tradition that draws visitors of all ages. In parallel, inspirational Christmas shops have been opened across all department stores with an elevated offering that reflects the festive season.
In line with its strategy, Stockmann continues to enhance its curated offering and also omnichannel experience, aiming to exceed the expectations of loyal customers while also improving competitiveness. A key part of this is maintaining an active dialogue with customers, supported by increased personalization and automation through my Stockmann loyalty program. On the next page, before we jump into the Q&A, let's sum it up. I'm very pleased with the continued progress with the Stockmann division. It is encouraging to see that the Lindex division increased its revenue in the third quarter, despite the challenges that we experienced related to the stock availability. The ramp-up of our new omnichannel distribution center will be a key enabler for future growth. We are well-positioned to expand into new markets, such as Denmark. Overall, I'm confident that we are building strong and resilient operations in both divisions.
With that, we now open up for your questions.
Yes, we have a question related to the revenue of the Stockmann division. Question to Susanne, how did the closure of the ETIS department store and the transfer of the furniture category to Bepselainen impact Stockmann's revenue?
Yes. The ETIS department store closing has had an impact on the revenue, but it has not had any material impact on the profitability. We are very happy and pleased that we have managed to cover the reduced sales from the ETIS department store by sales growth in other channels. The comparable revenue, excluding the impact of ETIS that happened in June, and then also the transfer that we now had for the furniture assortment to our new partner, Bepselainen, that happened in September, we can see that we clearly grew our revenue compared to the comparison period if we then exclude these two parts.
Thank you, Susanne. Regarding the group cash flow and liquidity situation, a question to Henrik. How is your cash flow and liquidity situation now? How do you anticipate that to develop?
I think that's an excellent question. I would like to start by saying that seasonality plays an important role in our industry and the impact on cash flow. We're happy to state that we are seeing improvements during the quarter. If we look specifically at the Lindex operating free cash, the group's cash flow, excluding the investment in the Lindex omnichannel, it's improved to -18.3% compared to previous year, -€24.7 million. It's affected mainly by the decrease in working capital, as we talked about in the presentation. Investments affected the operating free cash flow, which was around -€5.9 million versus last year, -€8.4 million. We continue to invest, of course, to drive improved customer offerings and digital solutions and supply chain enhancement. That's totally in line with our growth strategy.
These investments, together with the successful implementation of the new distribution center, will positively impact our efficiency and our liquidity performance compared to previous year.
Regarding guidance, Susanne could take this one. You are guiding a slight improvement in both sales and earnings compared to what we have seen so far this year. What is this based on? Do you see a recovery in the market?
Thank you. Looking ahead, we expect a gradual improvement in consumer confidence and also signs of economic recovery, although we are aware that this may vary across the markets. In addition to this, we are entering the peak season with stronger stock availability and also a more stable logistic flow. We also see growing customer appreciation for our assortment. Therefore, we have a positive view. Maida, are you still with us?
Sorry. Has your new warehouse had a negative impact on the revenue for Q3? Has it had any impacts on the guidance?
While the change and the ramp-up have been progressing and we now have all garments in the central stock that have now been handled through the new facility, the dual operations of both having the new and old e-commerce warehouses has, of course, affected the efficiency of our operations. This was also something that we anticipated and were aware would happen in this project. From a revenue perspective, the revenue improved as expected in the beginning of this quarter. Unfortunately, the temporary technical issue that I explained happened in August led to longer lead times, which negatively impacted the product availability across all sales channels that we have at Lindex. As a result, our revenue for the third quarter fell short of expectations. Partly due to this, we also specified our guidance.
Yes, thank you, Susanne. We have a question regarding the restructuring program. Could you please tell us about the positive effects of ending the restructuring program?
A company that is under a corporate restructuring program faces several legal and, I would say, operational restrictions. These have now been removed once the restructuring has ended. We can see that the degree of, I would say, autonomy and decision-making has then increased. This would allow us to focus even more and fully on the future development of our business.
Yes, thank you. We go to the Stockmann division and the Crazy Days that we just had. Please elaborate on the Crazy Days campaign outcome of fall 2025.
Of course, we are very pleased with the interest that the campaign raised among our customers in our home markets, Finland, Estonia, and Latvia. The campaign, which is actually now turning 40 years next year, was once again a well-received, well-awaited event. Our Crazy Days campaign performed better than last year. As the campaign was run after the reporting period, we will provide more information about this in the Q4 report. Please come back to that report, and you will get more information.
Thank you. We have still a question about the omnichannel distribution center and the costs of it. This would, I think, go then to Henrik. What was the cost impact from the new distribution center this quarter? When are the $10 million annual savings expected to materialize comparing to Q3? I think partly Susanne has commented on the omnichannel distribution center, but you can complement, Henrik, if you want to elaborate a bit on the cost.
Yes, of course. We have additional direct costs during the ramp-up, which was also expected. The financial effects for the quarter have been within the normal range of financial impacts that are typical for this size of project and operational transformation. However, the technical issue that we experienced in August had a clear impact on the revenue. As earlier communicated, we expect the savings of approximately €10 million to come from improvements connected to OCDC when the OCDC is fully up and running.
Yes, thank you, Henrik. We could then stay with Henrik here. Regarding the currencies, has the weakening US dollar given tailwind, or will it happen in Q4 2025?
Also a very valid question. I would like to say that we have experienced swings in the gross margin throughout the quarter, driven from changes in the U.S. dollar. To understand the implication or impact on us, we have approximately 7 to 10 months before we actually start to see effects connected to the U.S. dollar to show in our financial numbers. We have noticed a positive development towards the end of the quarter. Currency rates also, of course, had an impact on Lindex Group's adjusted operating result in Q4. For the Lindex—sorry, thank you so much, Q3. For the Lindex division, the revenue was positively impacted and operating costs negatively when we do the consolidation on group level.
Maybe just to reflect here, I think what we're talking about in the U.S. dollar, you have, as Henrik says, a postponed impact. We can see for the quarter, it was in this quarter negatively, but at the end, going to a more positive one. Overall, it was negative for the third quarter. The other comment Henrik had was regarding the Eurotech implications when we report on a group level.
Thank you for the clarification, Susanne.
OK. We have a question regarding Lindex and expansion in Denmark. Are you planning to open more new stores in Denmark, Susanne?
First of all, we are super happy that we have opened our first store, that we are getting more localized, and even understanding the Danish customer even more. We are looking forward to future expansion here. It is an important step in our continued growth journey to strengthen our position in Denmark and also in the Nordic region. Yes.
We have a question regarding dividends. Maybe this goes to Susanne. Is the dividend policy of at least half of the earnings still valid now when restructuring has ended and dividend payments are possible again? Maybe taking this first.
The dividend is something that the board of directors may propose. It is always at the general meeting that decides such matters. At this point, I cannot speculate on this topic.
Yes, thank you, Susanne. We go back to the omnichannel distribution center. What happens to the old distribution center? Are you going to sell it, or what will happen with that? We are now speaking here about Partille and Borås.
I can take that then, maybe. We don't own these properties. It is not something for us to sell. We are ending the lease contracts for those two warehouses.
Yes, thank you. We are still staying in the same topic regarding the technical issue that took place in August. Can you provide further details on the technical issue? Do you feel comfortable that this will not happen again during the Christmas period?
I take it. Otherwise, let us know, Magda, who you want us who should answer. I can start at least. I don't want to go too deep into this technical issue. What we had is we used mini load cranes to take in the products into the facility. It was these cranes that we then found a defect. We were not able to use them for approximately two weeks. That then led to this added lead time before we were fully up and running as well. That is why it also took some time before we got the impact on the product availability, which we could see in all the sales channels in the later part of August and also in September. The positive is that we are now more in normal business with the product availability again.
Yes, thank you. Related to the Lindex division and promotional activities. This would go then to Susanne. Why is Lindex having to increase promotional activities?
I would say that we can see that it is a market that is very promotion-driven at the moment, which also drives us to put more promotion activities. That is a good reason for this. I would also say that it is balancing also the stock. That has also been improving during the third quarter if you look at the total stock for the Lindex division.
Yes, thank you. We have a question regarding the omnichannel distribution center and possible sale and leaseback. What is the status of sale and leaseback of Lindex's new logistics center? Is this still in planning?
May I take that? I would like by stating that we have not made any decisions in regards to this yet. Different options are being evaluated further ahead. It will be treated as any other major business decision. Our full focus now is to get the OCDC up and running at full capacity.
Yes. If we then stay still with you, Henrik, there is another question regarding the omnichannel distribution center and possible cost increases due to the postponement of the warehouse transfer. Will the postponement in warehouse change create extra costs? I understood the old warehouse was supposed to close end of 2025.
I think we have touched upon it in the previous answer. What I can say is that while the ramp-up was progressing and all garments in our central stock have been handled through the new facility that took place here in Q3, dual operations for both the new and old e-commerce warehouses has affected the efficiency of operations. That is something that we have anticipated. From a revenue perspective, the revenue improved as expected in the beginning of the quarter. Unfortunately, this temporary technical issue in August led to longer supply lead times, which impacted product availability across all channels for the division. As a result, our revenue for the third quarter fell short of our expectation. Due to this, we also specified our guidance to reflect this impact of these operational challenges.
Thank you. We have a question related to AI. How do you expect the new way of shopping with ChatGPT to affect the industry in general? Does it impact Lindex? It seems to be a huge change for the whole retail industry when customers buy the products recommended by AI. Would this be something that you would like to elaborate a bit on, Susanne? Any kind of personal view on this or Lindex view?
Maybe I would avoid the personal view. I think that AI is impacting all industries and all companies and also all people. We have to be really open-minded, be curious on what's happening, and how can we use that meeting the customers and improving the customer experience and supporting her when shopping at Lindex or our customers shopping at Stockmann. For sure. I also think that there are so many things going on here within the AI. We need to also prioritize right to really get hold of the improvements or the efficiency. That is something that we are discussing a lot internally.
Yes, thank you. I think, unfortunately, we are time-wise coming to the end of our Q&A session. I think we can take one more question. I know that you need to move on. Henrik, we have a question regarding the depreciation. Why would Lindex's depreciation increase notably?
The Lindex depreciation is expected to increase. This is due to the heightened investment activity within the group, particularly when it comes to store expansion. It's about investment in digital infrastructure and for the Lindex division, specifically the new omnichannel distribution center, which is the biggest investment in the division's history. This will, of course, impact the depreciation. We have started with depreciation on the omnichannel distribution center during the reporting period.
Yes, thank you, Henrik. These were now the questions that we were able to tackle during this Q&A session. I think we had a couple more, but they related to the topics that you, Susanne, and Henrik have mainly touched upon. In case there was something that you didn't get an answer to, please don't hesitate to contact us via the email address that you will see on the next page. Thank you.
Thank you, Magda. Thanks, everyone, for both listening in and showing interest for Lindex Group and your thoughtful questions. Also, as Magda here said, if there is anything that comes up later, you can always reach out to us via our investor relations email. We will be publishing our financial calendar for 2026 later on this year. We look forward to seeing you again at the beginning of next year. Thank you, everyone. I wish you all a great.