Marimekko - Clear estimates beat
Marimekko’s Q1 result was very strong and it clearly outpaced the expectations. Net sales increased by 17% and were EUR 29.1m vs. EUR 27.7m/27.6m Evli/cons. Sales were driven by good wholesale sales development in APAC region, Finland and Scandinavia as well as increased licensing income in EMEA. Adj. EBIT was EUR 5.6m vs. EUR 2.4m/2.3m Evli/cons.
- Finland: revenue was EUR 14.5m vs. EUR 14.0m Evli view. Revenue increased by 7% y/y and was driven by good wholesale sales development. Nonrecurring promotional deliveries in particular contributed to an increase in wholesale sales in Finland.
- International: revenue increased by 29% y/y and was EUR 14.6m vs. EUR 13.7m Evli view. Sales were driven by good wholesale sales development in APAC region and Scandinavia as well as increased licensing income in EMEA. Sales growth in APAC region was partly due to the transfer of some of the wholesale deliveries for Q4’20 to Q1’21.
- Q1 adj. EBIT was clearly above expectations at EUR 5.6m (19.3% margin) vs. EUR 2.4m/2.3m (8.7%/8.3% margin) Evli/cons. Profitability was boosted by increased sales, improved relative sales margin as well as reduced fixed costs.
- Q1 adj. EPS was EUR 0.55 vs. EUR 0.21/0.18 Evli/cons.
- 2021E guidance: net sales are expected to increase from last year. Adj. EBIT margin is expected to be approx. on a par with last year or higher.