Marimekko - Q3 result outpaced expectations
Marimekko’s Q3 result outpaced the expectations. Net sales were EUR 38.0m (10% y/y) vs. EUR 36.0m/35.3m Evli/cons. Adj. EBIT was EUR 10.5m vs. EUR 9.1m/8.4m Evli/cons. Marimekko expects 20E net sales to be lower than in the previous year and comparable operating profit is estimated to be approx. at the same level or lower than in the previous year.
- Finland: revenue was EUR 23.0m vs. EUR 21.7m Evli view. Revenue increased by 17% y/y. Revenue was boosted by increased wholesale sales. The increase in wholesale sales was partly due to nonrecurring promotional deliveries.
- International: revenue increased by 2% y/y and was EUR 15.0m vs. EUR 14.3m Evli view. Wholesale sales developed well also in EMEA.
- Q3 adj. EBIT was EUR 10.5m (27.7% margin) vs. EUR 9.1m/8.4m (25.3%/23.8% margin) Evli/cons. Profitability was boosted by increased sales and decreased fixed costs. Fixed costs were also reduced by subsidies granted in various countries to mitigate the negative business impacts of the coronavirus pandemic. On the other hand, relative sales margin declined.
- Q3 EPS was EUR 0.98 vs. EUR 0.86/0.81 Evli/cons.
- 2020E guidance: group net sales are expected to be lower than in the previous year and comparable operating profit is estimated to be approx. at the same level or lower than in the previous year.