Marimekko - Another solid year in the books
Marimekko’s Q4 net sales and adj. EBIT missed our estimates slightly yet the story continued to develop favorably with strong intl. growth and solid margins.
- Group result: driven by strong wholesale development especially in APAC and NA, Q4 net sales grew by 5% to EUR 50.6m (52.9/53.6m Evli/cons.), slightly lower than out estimates. Domestic retail was surprisingly strong with growth of 3% y/y, on the other hand domestic wholesale missed our estimates as the sales declined by 2%. Gross margin came in lower than expected as on the other hand, it was supported by higher licensing income and lower transport cots as expected while higher discounts affected it negatively. Adj. EBIT amounted to EUR 8.3m (9.0/8.7m Evli/cons.), reflecting a margin of 16.4%. Adj. EPS came in at EUR 0.15 (0.18/0.17 Evli/cons.).
- Finland: topline grew 2% to EUR 30.5m (Evli est. EUR 31.9m) supported by retail sales while wholesale sales decreased 2%.
- Int’l: growth was strong at 10% y/y yet slightly below our estimate. Growth was supported by wholesale especially in APAC and NA.
- 24 market outlook: Sales in Finland in 2024 are impacted by the weak general economy and low consumer confidence as well as the development of purchasing power and behavior. Despite the weak market situation, net sales in Finland are expected to be approximately at the level of the previous year. International sales are estimated to grow in 2024. Marimekko aims to open roughly 10-15 new Marimekko stores and shop-in-shops, most of the planned openings will be in Asia (19 openings in 23, of which 17 in Asia).
- 24 guidance: Net sales to grow and adj. EBIT margin between 16-19%.
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