@henrielo has written an article about Lindex (and Nokian Renkaat). 
Inderes forecasts earnings per share of EUR 0.22 for Lindex and OP EUR 0.23 for 2025. This would result in a P/E ratio of 13 at the current share price and next year’s earnings forecast. The company may return to paying dividends if it completes its corporate restructuring program.
Results coming in a couple of days on Fri Oct 25, perhaps some information about that last open dispute case with LähiTapiola (LocalTapiola).
Our forecast is below the midpoint of the guidance range
Lindex’s guidance expects the 2024 revenue change to be +/- 2% in local currencies and the adj. operating profit to be EUR 70–90 million. Our forecast is slightly below the midpoint, as our revenue forecast is slightly negative and the adj. operating profit forecast is EUR 74 million. We expect the company to reiterate its revenue guidance, but regarding the operating profit, it might, for example, lower the upper end of the range.Regarding the restructuring process, the company has had only one disputed case remaining for about half a year now. This dispute with LähiTapiola is, to our understanding, in court proceedings and a decision should be reached soon. We believe the dispute will be settled later this year, after which the restructuring process can be concluded. This also enables the possible structural change (i.e., the sale of the Stockmann division) to proceed. If Lindex had news regarding these matters, we believe they should be announced separately and not in connection with the earnings report. It may be that the company still has nothing new to report regarding these in connection with the Q3 report. We wrote more specifically about the company’s situation in our recent update.
Ahead of Lindex’s report this Friday, there are currently 11 estimates from private investors. Submit your own expectations and view the consensus on the company page! 
Lindex Group - Inderes
The report is out: https://www.lindex-group.com/wp-content/uploads/sites/5/2024/10/Lindex-Group-Interim-Report-Q3-2024-FIN.pdf
At first glance, it seems that estimates were missed in both revenue and earnings.
The 2024 guidance was lowered at the upper end of the range: 70-80 m (previously 70-90).
We’ll probably dip this morning; quite a weak result, although there are quite a lot of one-off items in there.
The district court decision is coming in the afternoon, so we might be in for a rollercoaster ride today, depending on whether Lindex provides a separate update on the decision later today.
Edit: thanks @Sijoittaja-alokas, this originally went to the wrong thread.
Lindex Group’s Q3 result fell clearly short of our expectations and the comparison period, as the Lindex segment’s sales suffered from logistical problems and its gross margin was also weaker than we expected. The company also lowered the upper ends of its full-year guidance and now expects adj. operating profit to be 70-80 MEUR. The weak Q3 naturally puts downward pressure on forecasts, and in our view, work remains to reach even the lower end of the guidance in Q4. Regarding the restructuring process and the strategic review of the department stores, the company had no new information in the report, but we still expect news on these during the rest of the year.
This result is indeed very weak. Let’s hope that we owners also get justice from the court.
Briefly, I picked up from the stream that according to Susanne’s estimate, 60% of the revenue slowdown was due to logistical reasons and 40% due to the market situation. Regarding logistics, the situation looks better in Q4 (inventory levels). That should therefore be temporary, and the new warehouse is also coming into use.
As a shareholder myself, I am still positive because:
Here is the results webinar presentation
Regarding the speculation about market shares,
Lindex’s profitability unfortunately “tanked,” and a downward trend has been present for a while now.
Department stores’ profitability has unfortunately leveled off in the negative, staying in the -5…-10 million EUR range for three years already. In other words, there haven’t been measures that have been effective enough to offset the leaking ship…
Apologies if I’m asking the obvious, I haven’t read the whole thread, but where does the information come from that the decision is coming today? I couldn’t find confirmation anywhere at first glance.
The district court has told me as much, at least; let’s see if it stays on schedule.
It was stated in the webcast that the hearing is today and that “we are curious” … “no speculating in advance”
If I understood those sources correctly, HUI’s data covers the entire Swedish retail sector. I would assume it includes, for example, clothing sales in supermarkets too. Swedbank’s data, on the other hand, is based on the merchant’s Merchant Category Code, of which a company can only have one. This means it would only include those Swedbank client companies whose primary line of business is fashion, or whatever Lindex’s code happens to be.
The decision is in, Lindex won 100-0, meaning compensation was awarded according to the restructuring program.
Bad news because now Lähtiapiola can easily appeal.
3.4 million is the correct compensation according to the district court.
I need to read the entire ruling through carefully, but from a quick scan, it seems like a very thorough decision. It will likely be appealed, but the ruling itself could also influence the reaching of a settlement. I don’t believe this will change in the Court of Appeal.
That “negotiation path” feels a bit strange to me. As I understand it, negotiations have already taken place without result. The court’s latest decision is in accordance with the restructuring program. It was equitable towards all creditors at the time. If a new amount is then negotiated, that would also require a court decision and an amendment to the restructuring program. Now a decision has been reached on the correct compensation. Presumably, this will lead to a round of appeals.
The stock price was not pleased with the decision, or rather, it turned slightly further into the red.
So presumably, a right of appeal was granted in connection with the judgment, and why wouldn’t it be.
The appeal must be made within 7 days, including the grounds, etc. Well, that’s not the slightest problem for lawyers.
The matter can be settled between the parties, and now that there is
Even though large sums of money are involved, neither party likely has a particular interest in continuing to hash out the matter. Both parties’ interests lie in managing their own businesses, which also involve the tenant relationship of Stockmann in Tapiola. This legal proceeding alone cost 0.5 million EUR in legal fees, judging by the fact that Lähi-Tapiola was ordered to pay Lindex 250 kEUR in legal costs.
Perhaps the decision opens the door wider for a settlement as well, because since the arbitration court’s decision was apparently unlawful, one can of course wonder if it was even possible to close a deal on that basis. Well, I’m not a lawyer, who knows. Now, however, there is a solid foundation from which to compromise while respecting legal principles, of course.
The District Court announces in connection with the delivery of the judgment whether the decision can be appealed.
The appellant must first declare their dissatisfaction with the District Court’s decision, on pain of forfeiture of the right to be heard, within seven days of the date on which the District Court’s decision was pronounced or given.
The petition of appeal is addressed to the appellate court and must be delivered to the District Court’s registry within the time limit. The petition of appeal must state, among other things, which parts of the District Court’s decision are being appealed and what changes are requested, as well as the grounds on which the appeal is sought and the evidence to be relied upon. If leave to appeal (continued consideration permit) is required in the case, the petition of appeal must state the grounds for granting the leave to appeal and the reasons why the appellant considers the grounds to exist.
In civil cases where settlement is permitted, the parties may agree in writing that none of them will appeal the matter. Such a matter may concern, for example, a monetary debt.
This doesn’t bring any new information to this thread, but I’ll post it here anyway.
LINDEX GROUP plc, Inside information 25.10.2024 at 16.45 EEST
Helsinki District Court decision on the dispute between LähiTapiola Keskustakiinteistöt Ky and Stockmann AS
The Helsinki District Court has today issued a judgment in the dispute between LähiTapiola Keskustakiinteistöt Ky and Stockmann AS regarding the amount of damages for the termination of the lease of Stockmann’s Tapiola department store in connection with the restructuring proceedings.
In its judgment, the Helsinki District Court confirmed that the compensation due to LähiTapiola Keskustakiinteistöt Ky is in accordance with the restructuring programme and amounts to EUR 3,452,017. The compensation has already been paid to LähiTapiola Keskustakiinteistöt Ky. The paid compensation was restructuring debt of Lindex Group plc.
The judgment is not final.
Only one dispute with LähiTapiola Keskustakiinteistöt Ky remains in Lindex Group plc’s restructuring process.
No, there is now 7 days to express dissatisfaction with the decision, and then a 30-day period begins during which the appeal to the Court of Appeal (HO) must be filed.
I’ll probably write a bit more extensively about the next steps over the weekend.
