Marimekko - Profitability way above expectations
Marimekko reported Q2 results above expectations. Q2 net sales came in line with our estimates while profitability topped our expectations. 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 Int’l development, Q2 net sales grew by 6% to EUR 40.3m (40.6/39.0m Evli/cons.), roughly in line with our expectations. Domestic sales however came in soft with decreased demand for wholesale sales. Improved gross margin was supported by lower logistics costs and increased licensing sales. Despite increased fixed costs, higher volumes and improved gross margin boosted adj. EBIT above the comparison period and our expectations. Adj. EBIT amounted to EUR 6.6m (4.9/5.0m Evli/cons.), reflecting a margin of 16.8%. Adj. EPS accounted for EUR 0.12 (0.09/0.10 Evli/cons.), which could have been better without decreased net financials.
- Finland: topline decreased by 3% to EUR 22.2m, which was below our estimates (Evli: 24.2m). The growth was driven by solid retail sales while wholesale and licensing sales decreased by some 20%.
- Int’l: net sales came in very strong and above our expectations. Topline grew by 21% to EUR 18.1m (Evli: 16.4m). The increase was supported by strong APAC and EMEA regions as well as North America. In total, Int’l wholesale sales increased by 18% y/y.
- 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. Licensing sales are expected to increase.
- 23 guidance intact: Net sales to grow and adj. EBIT margin between 16-19%.