Marimekko - Great figures
Marimekko’s Q2 results came in above our and consensus’ estimates. Top line was driven by 61% growth in Finland and gross margin was also some 120bps above our estimate. Marimekko thus reached high absolute and relative profitability. The company however left its guidance intact, which moderates H2 estimates.
- Q2 revenue grew by 40% y/y to EUR 32.7m, compared to the EUR 29.3m/29.3m Evli/consensus estimates. Finland came in at EUR 18.4m vs the EUR 15.1m/14.9m Evli/consensus estimates, helped by a favorable trend in retail and wholesale revenue. Total Retail revenue was EUR 15.1m vs our EUR 13.9m estimate while Wholesale amounted to EUR 17.1m vs our EUR 15.2m estimate.
- Gross profit amounted to EUR 20.4m vs our EUR 17.9m estimate. Gross margin was 62.3% vs our 61.1% estimate.
- Adjusted EBITDA was EUR 8.5m, compared to our EUR 6.2m estimate. Adjusted EBIT was EUR 5.5m vs the EUR 2.9m/4.0m Evli/consensus estimates. Strong growth and gross margin helped profitability, while an increase in fixed costs had a weakening impact on earnings.
- Marimekko left its guidance unchanged and expects 2021 revenue to be higher than previous year and adjusted EBIT margin to be approximately on a par with or higher than in the previous year. In our opinion the guidance now appears a bit on the cautious side, especially considering Marimekko has indicated the majority of its revenue and earnings this year will be generated in H2.