Marimekko's in-line Q2, higher costs drag shares after strong past performances

Marimekko Oyj

17/08/2022 11:13

** Shares in Marimekko fall 8.5% after the Finnish fashion
company's Q2 results, hit by higher-than-expected costs, came in
line with estimates, disappointing investors after beats in past
quarters  urn:newsml:reuters.com:*:nASM000NPE
    ** Inderes analyst Rauli Juva says that being able to "only"
reach the expectations might be a disappointment to some, as
Marimekko had posted solid performances in previous quarters
    ** The company reports a 16% YoY rise in Q2 net sales to EUR
38.0 million ($38.7 million) and a 17% jump in adj. operating
profit to EUR 5.7 million
    ** Consensus cited by Inderes had expected sales of EUR 36.9
million and adj. operating profit of EUR 5.5 million
    ** OP Markets says that despite strong sales growth in the
quarter, adj. operating profit came close to market expectations
as fixed costs rose more than the broker had expected
    ** Marimekko says Q2 costs grew mainly due to a rise in
marketing expenses, as well as surging personnel costs and
recruitment expenses as it seeks to boost international growth
    ** The stock is on track for its worst day since March and
has dropped by 28% YTD

($ = 0.982692 Euro)

 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))