Marimekko - Growth rate slowed down as expected
Marimekko delivered solid Q3 figures. Net sales came in with single-digit growth and relative profitability was on a robust level.
- Group result: Marimekko’s net sales came in slightly below expectations and grew by 4% y/y to EUR 44.1m (45.0/45.3m Evli/cons.). The growth was driven by both Int’l sales and retail sales in Finland. Adj. EBIT was clearly below our expectations and amounted to EUR 11.1m (25.2% margin) (13.0/12.3m Evli/cons.). Profitability was negatively affected by elevated fixed costs (increased IT-investments and personnel costs) and weaker gross margin (increased logistics costs and elevated discounts). In turn, the profitability was supported by favorable sales-mix and pricing. EPS amounted to EUR 0.22 (0.25/0.24 Evli/cons.).
- Finland declined by 7% y/y to EUR 26.7m (Evli: 29.1m) due to weaker wholesale deliveries which the company was already guided. However, retail sales saw solid 10% growth.
- Int’l grew strongly by 28% y/y to EUR 17.4m and came in above our expectations (Evli: 15.9m). The growth was supported by retail and wholesale sales in the APAC region as well as abnormal wholesale deliveries compared to Q3’21. The growth was also strong in Scandinavia and EMEA region.
- 2022 outlook: Domestic sales are expected to grow, but wholesale deliveries to be below that of the comparison period. The APAC region and international sales are expected to increase clearly on the comparison period. In total, net sales are expected to grow, but the growth pace to slow down in H2’22. Licensing income is expected to be above comparison period.
- FY22 guidance intact: expecting net sales to grow and an EBIT margin between 17-20%.
- Analyst comment: Although the result came in below our expectations, the rate of int’l sales growth surprised us positively which we see crucial for Marimekko’s long-term success.