Marimekko’s Q1 came in above our estimates, with profitability supported by an improved relative sales margin and positive operating leverage. We expect mid-single-digit sales growth and stable earnings delivery to continue throughout the year.
Here are a few shots from the Marimekko Day fashion show at Esplanadi. This is how you keep a brand relevant in consumers’ minds. I didn’t spot @Rauli_Juva there, but no worries, there’s still time to make it for the 13:30, 16:00, and 18:00 shows.
Almanakka has written about Marimekko’s Q1 in their usual excellent style
Valuation: The stock has dropped over 20% in a year, and although we saw a relief rally of over 10% on the Q1 reporting day, the calendar year remains nearly -20% in the red. The stock is not expensive at around 12x EBIT level, but the lack of growth in Asia bothers me. It is difficult to sway the domestic consumer with such high-priced products in this market, and now there were promises of increased costs (i.e., margin contraction) for the next quarter.