Marimekko - Q1 result topped our estimates
Marimekko came in strong with Q1 net sales as well as EBIT growing rapidly. The company’s resilience to weakened consumer confidence was stronger than we were expecting.
• Q1 group result: topline increased by 24% y/y to EUR 36.0m (EUR 30.4m/32.4m Evli/cons.) beating our and consensus estimates. Net sales growth was driven by solid development of wholesale and retail sales in Finland as well as good performance of int’l sales. Adj. EBIT improved to EUR 6.6m (EUR 3.9m/3.9m Evli/cons.), being 18.4% of revenue. Weakened relative profitability was driven by increased material and fixed costs. On the other hand, EBIT was supported by topline growth and lower D&A. EPS amounted to EUR 0.12 (EUR 0.08/0.08 Evli/cons.).
• Finland: net sales grew by 27% y/y to EUR 18.5m (Evli: EUR 15.2m). The growth was driven by both retail (+18% y/y) and wholesale sales (+41% y/y).
• Int’l: revenue saw an increase of 20% y/y, amounting to EUR 17.5m (Evli: EUR 15.2m). Good sales development was driven by all market segments. Topline grew strongly in the EMEA region (+34% y/y), North America (+26% y/y), and Scandinavia (+23% y/y) while the growth in the APAC region was more moderate with an increase of 10% y/y.
• 2022 guidance reiterated: Topline is expected to be above that of the comparison period (2021: EUR 152.2m) and adj. EBIT margin to be between 17-20% (2021: 20.5%).
• Outlook: although consumer confidence has been in a trend of decline, it seems that Marimekko has enjoyed still solid demand in Q1. The company expects retail, license, and wholesale sales to grow in 2022. In percentage terms, Marimekko estimates the net sales growth to be stronger at the beginning of 2022 than in H2.
• Finland: net sales grew by 27% y/y to EUR 18.5m (Evli: EUR 15.2m). The growth was driven by both retail (+18% y/y) and wholesale sales (+41% y/y).
• Int’l: revenue saw an increase of 20% y/y, amounting to EUR 17.5m (Evli: EUR 15.2m). Good sales development was driven by all market segments. Topline grew strongly in the EMEA region (+34% y/y), North America (+26% y/y), and Scandinavia (+23% y/y) while the growth in the APAC region was more moderate with an increase of 10% y/y.
• 2022 guidance reiterated: Topline is expected to be above that of the comparison period (2021: EUR 152.2m) and adj. EBIT margin to be between 17-20% (2021: 20.5%).
• Outlook: although consumer confidence has been in a trend of decline, it seems that Marimekko has enjoyed still solid demand in Q1. The company expects retail, license, and wholesale sales to grow in 2022. In percentage terms, Marimekko estimates the net sales growth to be stronger at the beginning of 2022 than in H2.