Marimekko - Well in line with expectations
Marimekko reported Q3 results well in line with our estimates. Both revenue and profitability were fairly in line while the margin was touch above our estimate. The guidance for 2023 was reiterated and the market outlook implies growth to continue in all of Marimekko’s main markets.
- Group result: driven by strong wholesale development globally, Q3 net sales grew by 9% to EUR 47.9m (48.5/49.3m Evli/cons.), roughly in line with our expectations. Finnish sales were supported by non-recurring promotional deliveries as expected while domestic retail declined by 1% y/y. Gross margin improved slightly supported by lower transport costs. Despite increased fixed costs, higher volumes and improved gross margin boosted adj. EBIT above the comparison period. Adj. EBIT amounted to EUR 13.1m (6/12.8m Evli/cons.), reflecting a margin of 27.4%. Adj. EPS came in at EUR 0.26 (0.25/0.24 Evli/cons.).
- Finland: topline increased by 6% to EUR 28.2m, which was a touch below our estimates (Evli: 29.5m). The growth was driven by non-recurring promotional wholesale deliveries as expected while domestic retail declined by 1% y/y.
- Int’l: net sales came in strong, slightly above our expectations. Topline grew by 13% to EUR 19.7m (Evli: 19.1m). The growth was supported by strong wholesale growth across the globe.
- 23 market outlook: Marimekko expects its domestic sales to grow, and one-off wholesale deliveries to support Finnish sales development in H2. The APAC region and Int’l net sales are expected to grow. The aim is to open roughly 15-20 new Marimekko stores and shop-in-shops in 2023, and most of the planned openings will be in Asia.
- 23 guidance intact: Net sales to grow and adj. EBIT margin between 16-19%.