Marimekko - International growth slower than expected
Marimekko's net sales in Q2 were in line while profitability surpassed our estimates slightly. Although total net sales were close to what we anticipated, domestic wholesale sales were significantly higher than expected, while international growth was more subdued.
- Group result: net sales were roughly in line with our estimate at EUR 44.5m (EUR 45.0/45.8m Evli/cons.). Although total net sales were in line with our forecast, our estimate for sales in Finland was overly cautious, whereas we were too optimistic regarding the international growth.
- Adj. EBIT amounted to EUR 6.5m (EUR 6.2/6.8m Evli/cons.), reflecting a margin of 14.6%. Profitability surpassed our estimates driven by a very strong gross margin despite the headwind from lower licensing.
- Finland: topline grew 3% y/y to EUR 25.2m (Evli est. EUR 23.6m). Retail grew in line with our estimates yet wholesale sales held remarkably well despite the timing of the promotional deliveries.
- Int’l: Marimekko’s international sales grew 1% y/y, while we estimated growth of over 12% y/y. APAC net sales did not achieve the strong growth we had anticipated. While the expected decrease in licensing occurred, wholesale sales—driven by the loose franchise business model—remained flat throughout the quarter.
- Adj. EPS EUR 0.11 per share (EUR 0.12/0.13 per share Evli/cons.), while EBIT surpassed, net financial expenses were higher than we had estimated.
- Financial guidance 2025 (unchanged): net sales expected to grow from the previous year, comparable EBIT margin to be some 16-19%.