Fiskars: Solid Q1 despite soft top line - Nordea

Fiskars Q1 adjusted EBIT of EUR 25.1m 13% above LSEG Data & Analytics consensus expectations. Net sales were up 3% y/y to EUR 283m driven by Georg Jensen acquisition and came 5% below consensus. On comparable basis, sales were down 6% y/y (we had modelled -5%, no consensus available). Direct-to-consumer sales were stable y/y driven by 12% increase in e-commerce and 6% decline in own retail network. Comparable gross margin was 48.3%, up 190bp y/y. On divisional level, Vita missed our estimates while Terra beat our estimates. Q1 operating cash flow returned to normal seasonal pattern and was EUR -5.5m (EUR 22m a year ago). Net debt/LTM EBITDA was 2.9x, up from 2.5x in Q4 2023. Fiskars maintained its guidance for 2024 intact and expects adjusted EBIT to improve slightly from EUR 110m in 2023. Low-quality consensus has been expecting EUR 98m adjusted EBIT (-12%) while we have modelled EUR 118m, i.e. 7% increase in 2024E. Initially, we expect consensus to make only minor adjustments to underlying estimates.