Marimekko - Earnings fell short of estimates
Marimekko's fourth quarter revenue missed our estimates slightly, weighed down by wholesale weakness outside APAC. However, the important APAC region performed well and above our expectations. The company's profitability fell clearly short of estimates due to elevated fixed costs, despite an improvement in relative sales margin.
- Group result: Q4 net sales of EUR 54.7m missed estimates (EUR 57.2/57.1m Evli/cons.), with APAC being the bright spot as both retail and wholesale grew strongly.
- Adj. EBIT: Q4 comparable operating profit of EUR 8.8m (EUR 10.3/10.1m Evli/cons.) represented a 16.1% margin. Elevated fixed costs weighed clearly on profitability, though this was partially offset by better-than-expected relative sales margin improvement.
- Finland: Domestic sales declined 1% to EUR 30.8m (Evli est. EUR 32.4m), underperforming expectations.
- Int’l: Sales grew 5% y/y, below our 9% estimate. APAC outperformed with 10% growth (Evli: 7%), while Scandinavia and Europe disappointed mainly due to wholesale weakness. Wholesale sales declined across all other regions in international markets, while retail sales grew.
- 2026 outlook: Finland and APAC both expected to grow for the full year, though Q1 will be muted in both regions due to timing effects.
- Macro backdrop: Operating environment remains challenging with geopolitical tensions, tariff pressures, and weak consumer confidence continuing to weigh on the outlook.
- FY2026 guidance: Net sales expected to grow y/y with comparable EBIT margin of 16-19% (FY2025: 17.1%).
- Dividend: Board proposes EUR 0.42 per share (Evli: EUR 0.41).