Marimekko - Solid margin and international growth
Marimekko's first quarter beat our estimates on both revenue and profitability, driven by an improved relative sales margin and stronger-than-expected international growth outside APAC, which came in as flagged. Domestic net sales were flat as wholesale promotional deliveries exceeded our estimate, offsetting weaker retail.
- Group result: Net sales were higher than we estimated at EUR 41.4m (EUR 40.1/40.2m Evli/cons.). Growth of 5% y/y was driven by international markets (+9% y/y), while net sales in Finland were flat. Globally, retail sales grew 3% and wholesale sales grew 5%.
- Adj. EBIT amounted to EUR 5.3m (EUR 4.2/4.1m Evli/cons.), reflecting a margin of 12.7% (Evli est. 10.4%, cons. 10.2%). The beat was driven by improved relative sales margin (supported by unrealized FX differences) and higher net sales, although higher discounts compared to the comparison period weighed on the sales margin. Fixed costs grew as anticipated, particularly marketing (EUR 2.5m vs. Q1’25: EUR 1.8m). Management noted fixed cost growth will be significantly stronger in Q2 than Q1.
- Finland: topline was flat y/y at EUR 18.8m (Evli est. EUR 18.3m). Retail sales declined 4% y/y (Evli est. -3%) reflecting the continued tactical operating environment, while wholesale sales grew 8% y/y (Evli est. -2%) as non-recurring promotional deliveries increased.
- Int'l: Marimekko's international sales grew 9% y/y to EUR 22.6m (Evli est. EUR 21.8m), with retail expanding across all market areas (+20% y/y). The key APAC region was flat y/y at EUR 10.0m, in line with our estimate, with retail +13% y/y offsetting wholesale -4% y/y (timing-driven as guided). North America surprised positively at +20% y/y (Evli est. +2%), while Scandinavia (+19% y/y) and Europe (+11% y/y) continued their positive momentum and grew stronger than estimated.
- Financial guidance 2026 (unchanged): net sales expected to grow from the previous year, comparable EBIT margin to be some 16-19%.
- Management additionally flagged that the ongoing war in Iran may significantly increase logistics costs if prolonged.