Marimekko - Expected guidance improvement
Marimekko specified its outlook for FY 2021, now expecting adj. EBIT margin to be above that of the comparison period (2020: 16.3%). Revenue guidance remains intact and is expected to grow from the previous year (2020: EUR 123.6m). Our estimates were already in line with the new guidance; we make no changes to our estimates or recommendation.
- Marimekko specified its guidance today, now expecting the comparable operating profit margin to be higher than in the previous year (2020: 16.3%). The company previously expected the comparable operating profit margin to be on par with or above the comparison period. Marimekko expects revenue to exceed the comparison period (2020: EUR 123.6m). The uncertainties related to the pandemic situation concerning the rest of the year have been reduced from previous expectations, thus contributing to the guidance improvement.
- Based on the guidance revisions we see no need for changes to our estimates. Our estimates already reflected growth and margin improvement, expecting the company to grow by 16% and reach an adjusted EBIT margin of 17.1% in FY 2021, and as such remain in line with the company’s new outlook.
- As our estimates remain intact and our expectations for the H2 outlook already were quite positive we retain our target price of EUR 84 and BUY-rating. Valuation remains at a higher level compared with both peers and the company’s own historic multiples, which is justifiable by the good outlook and higher profitability levels.