Fiskars Group’s Q4 pre-silent newsletter is now out: Fiskars Group Q4 2024 pre-silent newsletter. In this IR newsletter, you will find a summary of the quarter’s key themes and highlights.
You can also subscribe to the newsletters by email at: IR Newsletter - Fiskars Group .
Fiskars Group’s silent period begins on January 7, and we will publish our financial statement release on February 6.
I was on holiday at the beginning of the year and returned to work today. I thought I had already written something about tariffs, but it seems it had remained in my head 
@Noora_Huttula already provided some information from the company’s side.
The USA is indeed Fiskars’ clearly largest single country and an important market, accounting for about one-third of its revenue. Fiskars sources about half of its production through subcontracting, of which about half comes from China, meaning 25% of the total. Thus, a significant amount of goods goes from China to the USA (this figure has not been directly stated), and larger tariff increases would, in my opinion, impact profitability in the short term. However, competitors are largely in the same situation, so prices would probably, over time, at least partially compensate for the tariffs’ effect, and of course, the company’s own actions would also play a role. Both price increases and shifting sourcing elsewhere are slow processes, so I believe a tariff hike brings negative risk to the outlook for the coming year’s results.
As for Fiskars, there is still suspense as to whether the company will reach last year’s guidance, but the result will in any case remain close to the 2023 level (the guidance is “slightly better” and our forecast is at the 2023 level).
Here is Nordea’s analysis of Fiskars.
While awaiting Fiskars’ Q4 report, expectations have been slightly raised, and the company is expected to reach the lower end of its guidance.
Q4 sales are still expected to decline compared to the previous year, but improved gross margins support future volume recovery. For 2025, cautious growth is anticipated in the first half of the year and positive EBIT guidance. Dividends are expected to rise!
There are no walls.
Juvan Rauli provided pre-comments, as Fiskars reported its Q4 results already on Thursday.
In our opinion, Fiskars’ guidance was on a knife-edge for the entire year-end. We expected the full-year adjusted EBIT to be at last year’s level or slightly below, while the company had guided for a slightly better result. Since no profit warning has been issued, Fiskars appears to be able to meet its guidance. We have slightly raised our forecast in connection with this comment and now expect a result just barely better than last year. For the coming year, we expect an improvement in results and believe the guidance will reflect this.
Fiskars’ garden segment peer Husqvarna reported its Q4 results today, which had already been warned about in advance, as I commented above.
The relevant peer for Fiskars, i.e., the Gardena division, reported an organic net sales decrease of as much as 8% and weakening profitability. The company states that sales of robotic lawnmowers and watering products, in particular, decreased (which Fiskars does not have), while sales of hand tools increased (which Fiskars does have). Consequently, Fiskars has likely performed better than Gardena. For the entire Fiskars division, our expectation is a comparable level to the reference period for both net sales and operating profit. Fiskars reports tomorrow, and disappointment can practically no longer occur, as an earnings warning was avoided, as I wrote in the preliminary comment above. Regarding this year’s outlook, Husqvarna does not talk much about it in the report, at least not in the typical Swedish manner.
Here is Husqvarna’s report.
202502042173-1.pdf
Fiskars’ Q4, let @Rauli_Juva break it down: Fiskars Corporation: Fiskars Oyj Abp:n tilinpäätöstiedote 2024 - Inderes
October-December 2024 in brief:
January-December 2024 in brief:
Proposal for dividend distribution
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.84 per share be paid for the financial year ended December 31, 2024. The dividend will be paid in two installments of EUR 0.42 each.
Outlook for 2025
Fiskars Corporation expects comparable EBIT to improve from the 2024 level (2024: EUR 111.4 million).
Rauli was very much on the ball regarding the result. This year 2024 was definitely a good performance in a difficult consumer market, and since the guidance for the coming year is, as expected, on the positive side, it’s good to wait for the consumer market to pick up with Fiskars. @Rauli_Juva, can you estimate if the omission of the word “slightly” from the guidance has any practical indicative value when compared to Fiskars’ previous communication policy?
In the 2024 guidance, “slightly” turned out to be one million euros, so is this “improving” EBIT now ten million? 
You commented on Husqvarna earlier, and even though the product range is in many ways a bit different, Fiskars’ performance compared to its Western neighbor is really good. Husqvarna’s toboggan run doesn’t seem to be showing any signs of turning around yet. There are, of course, quite a few question marks there, perhaps also regarding the competitiveness of the product portfolio, and in my opinion, this is not a relevant threat for Fiskars’ brands at the moment. I guess orange scissors, camping axes, and Moomin mugs are still the number one product as long as the buyer has the money 
“Slightly” was generally interpreted as an improvement range of about 0-10%, so perhaps that improvement without the word “slightly” then means that the company’s expectation is rather at the 10% level or above. That is completely in line with forecasts. But I suppose, in principle, the guidance could still result in a smaller improvement, as the company’s use of the word “slightly” has not been systematic in any way. It will need to be clarified with the company during the year if necessary.
Here are some quick comments from Raul on this morning’s results.
Fiskars’ Q4 figures were close to expectations, although revenue was again slightly weaker than expected, with earnings, however, slightly exceeding forecasts. The full-year adjusted operating profit ended up at EUR 111.4 million, while the company had guided for “slightly” better than the 2023 level (EUR 110.3 million). For this year, Fiskars expects improved results, as anticipated, even though the demand environment remains subdued.
And a new report is out, although @Rauli_Juva came in second this time, because already at 4:04 PM a flash news from Kauppalehti: SEB raises Fiskars’ target price to 16.50 euros (previously 16.00 eur), ‘hold’ recommendation unchanged
Nordeakin tehnyt johtopäätöksensä, yllättäen vielä hieman pessimistisemmän kuin Rauli: Fiskars: Solid Q4 despite challenging market - Nordea - Inderes
Fiskars’ Q4 results were in line with expectations and the company issued positive guidance for 2025, despite the challenging operating environment. Cash flow has recovered to normal seasonality and shareholder remuneration continues to increase. Fiskars completed its new organisation structure ahead of schedule and it is making a EUR 12m growth investment in Vita, backed by EUR 10m in cost savings. Continuing improvements in its gross margin will be clearly supportive when market demand recovers. We derive a lower fair value range of EUR 13.6-14.9 (14.6-18.1). Marketing material commissioned by Fiskars.
Fiskars Group is strengthening its direct-to-consumer sales by transitioning from its own digital platform to SaaS-based services. This will enable Fiskars Group to streamline and scale its direct-to-consumer sales more efficiently in the long term. It also enhances digital capabilities by enabling access to the latest technical features.
As part of the transition, the company will impair internally generated intangible assets by EUR 27 million. These intangible assets are related to direct-to-consumer sales software, covering both digital and physical channels. The impairment will be reported as items affecting comparability in the first quarter of 2025, and it will not impact the company’s comparable EBIT or cash flow, nor will it have a material impact on its financial position.
Fiskars Group remains committed to strengthening its presence across various direct-to-consumer sales channels. The company continues to invest in scalable digital solutions that support its growth strategy.
CEO Nathalie Ahlström’s review from Wednesday’s Annual General Meeting. 
I hadn’t commented on this yet. A surprisingly hefty write-down, which corresponds to almost the entire amount of software capitalized on the balance sheet. However, this is not a problem for Fiskars’ balance sheet, as the total balance sheet sum is approximately EUR 1.7 billion and equity is approximately EUR 800 million. From the perspective of the income statement and cash flow, I understand this only means a shift of costs from investments/depreciation to direct expenses. Operationally, there should therefore be no material impact.
A new comprehensive report on Fiskars is out again. No change to the outlook, meaning we continue with a “reduce” recommendation. After a couple of years of declining volumes and an efficiency struggle, growth is expected to turn positive this year, which would also support margin growth.
In addition to normal fine-tuning, the report has been taken a step further towards the separate Vita and Fiskars segments, as the company practically separated them into independent companies at the beginning of the year. No major content changes occurred compared to the previous comprehensive report.
Rauli’s thoughts on Fiskars also in video form
Topics:
00:00 Introduction
00:16 Fiskars and Vita as independent segments
04:09 Vita segment’s successful and unsuccessful acquisitions
08:13 More responsibility for brands within segments
09:45 Will demand weakness continue?
11:16 Potential earnings leverage as demand picks up
12:48 Focus on winning brands
15:04 Financial targets
16:16 Indebtedness reasonably high
18:12 Impact of tariffs on Fiskars
20:00 Stock fairly priced
21:33 Valuation in the split
Fiskars Group’s Q1 pre-silent period newsletter is now out: Fiskars Group Q1 2025 pre-silent newsletter. In this IR newsletter, you will find a summary of the quarter’s key themes and highlights.
You can also subscribe to the newsletters by email at: IR Newsletter - Fiskars Group.
Fiskars Group’s silent period begins on March 25, and we will publish our Q1 interim report on April 24.
Hello from Fiskars Group IR! 
We have just published interesting appointment news in a stock exchange release – Daniel Lalonde has now been appointed as the CEO for the Vita business area. Daniel has experience in building world-class brands and businesses in luxury, fashion, home, and consumer products. He will start in his position on April 14, 2025.
Daniel has served as CEO at Flos B&B Italia Group, at the company SMCP (Sandro, Maje, Claudie Pierlot and Fursac), and at Ralph Lauren. Prior to these roles, he had a 10-year career at LVMH Group, working as CEO of LVMH Watches & Jewellery North America and Louis Vuitton North America, and as Global CEO of Moët & Chandon and Dom Perignon.
This appointment is an important step in the journey of the business areas to become functionally independent companies. Vita and Fiskars have their own CEOs and are responsible for their performance as owned by Fiskars Group. This enables faster strategy execution.
Fiskars Group Leadership Team as of April 14:
I commented earlier on tariffs, and the company itself, in its pre-silent comment two weeks ago, stated that it expected only minor effects from the tariffs known at that time. The USA accounts for about 30% of the group’s sales and about half of the Fiskars segment.
Now that China’s tariffs are rising again and tariffs have also been imposed on the EU, Fiskars’ situation is becoming more difficult, as Fiskars’ own production for goods going to the USA mainly comes from Europe. If the tariffs announced yesterday remain in effect, I believe these cannot be immediately passed on to sales prices, and margin pressure will arise for the Fiskars segment for the rest of the year. However, competitors’ products are also mainly from outside the USA, so there should not be major changes to the competitive situation. Of course, dynamic effects may also occur in the US market, meaning that as prices rise (both for Fiskars and in the broader economy), demand may wane.
Rauli has made a new company report on Fiskars, and it has dealt with these tariff issues very well.
The USA is Fiskars’ largest market, and tariffs negatively affect it. We have lowered our forecasts by 5-10% and our target price to 13.5 euros (previously 15e). We reiterate our reduce recommendation.
