Fiskars: In-line Q3 adjusted EBIT – guidance intact - Nordea

Fiskars’ Q3 adjusted EBIT of EUR 24.3m came 1% above LSEG Data & Analytics consensus expectations. Net sales were up 6% y/y to EUR 256m driven by Georg Jensen acquisition and came 4% below consensus. On comparable basis, sales were down 7% y/y (we had modelled -4%, no consensus available). Comparable direct-to-consumer sales were down 3% y/y driven by a 9% decrease in own e-commerce. Comparable gross margin was 48.1%, up 90bp y/y. On divisional level, Vita missed our EBIT estimate while Fiskars BA beat. Q3 operating cash flow was soft at EUR -3m (EUR 68m a year ago), driven by EUR 30m negative working capital change. Net debt/LTM EBITDA was 2.8x, up from 2.7x in Q2 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 110m adjusted EBIT while we have modelled EUR 109m, a 2% decline in 2024E. Initially, we expect consensus to make only minor EBIT adjustments while note the risk on the guidance until year-end as the company is some EUR 4m below last year on adjusted EBIT YTD. Following the Georg Jensen acquisition (beginning of Q4 2023), the importance of Q4 has increased.