Fiskars: Weak Q3 – lowers guidance - Nordea

Fiskars lowers its guidance for 2023 and published preliminary information of Q3. The company now expect EUR 100-120m adjusted EBIT in 2023, down from EUR 120-130m previously. Refinitiv consensus has expected EUR 118m adjusted EBIT in 2023, i.e. 7% above new guidance mid-point. Fiskars notes challenging and volatile market conditions that are expected to continue in the Q4 (important for Vita). Low consumer confidence and retail customers’ focus on inventory management are affecting demand and sales more than the company had earlier anticipated. In addition, the company notes that Georg Jensen acquisition is expected to have a positive impact on adjusted EBIT in Q4 (earlier anticipated negative impact). Q3 net sales declined 18% y/y on reported basis (-13% on comparable FX) while adjusted EBIT was approximately EUR 17m. Refinitiv consensus has been anticipating 11% y/y sales decline and EUR 29m adjusted EBIT in Q3. We note consensus deviation to guidance mid-point stems from Q3 miss. We expect consensus to adjust its estimates close to the new mid-point of the guidance, while 2024E-25E adjusted EBIT estimates are likely to come down around 5%, we believe.