Fiskars: Soft top line development continued - Nordea

Fiskars Q2 adjusted EBIT of EUR 19.2m came 3% above LSEG Data & Analytics consensus expectations. Net sales were up 5% y/y to EUR 281m driven by Georg Jensen acquisition and came 4% below consensus. On comparable basis, sales were down 5% y/y (we had modelled 0%, no consensus available). Comparable direct-to-consumer sales were down 5% y/y driven by 9% decrease in e-commerce and 2% decline in own retail network. Comparable gross margin was 49.1%, up 230bp y/y. On divisional level, Vita beat our EBIT estimate while Fiskars BA missed. Q2 operating cash flow was strong at EUR 65m (EUR 56m a year ago), supported by NWC. Net debt/LTM EBITDA was 2.7x, down from 2.9x in Q1 2024. Fiskars maintained its guidance for 2024 intact and expects adjusted EBIT to improve slightly from EUR 110m in 2023. LSEG consensus has been expecting EUR 107m adjusted EBIT (-3%) while we have modelled EUR 120m, a 9% increase in 2024E. Initially, we expect consensus to make only minor adjustments to underlying estimates.