Fiskars: Strong Q1 with both BAs profitability above expectations - Nordea

Fiskars Q1 adjusted EBIT of EUR 25.0m came 26% above Modular Finance consensus expectations with in line top line. Net sales were down 3% y/y to EUR 283m with 2% y/y comparable sales growth (we had modelled +0.7%). Fiskars BA comparable sales were stable while Vita BA comparable sales growth was 5% y/y. Direct-to-consumer sales were up 2% y/y while own e-commerce sales were up 8%. Comparable gross margin was 46.7%, down 80bp y/y, driven by Vita BA. Q1 EBIT beat was driven by both BAs while we note strong performance of Fiskars BA despite tariffs and FX headwinds (EUR 1.8m for Fiskars BA). Marketing and SG&A costs came EUR 4.2m below our expectation, underpinning successful internal measures, we believe. Q1 operating cash flow was strong at EUR 8m (EUR -2m a year ago) while leverage stands at 3.6x (3.3x in 2025). Fiskars reiterated its 2026 guidance for improving adjusted EBIT after EUR 76m in 2025 with majority of improvement to stem from Vita BA. Consensus is expecting EUR 96m adjusted EBIT in 2026E. Initially, we expect consensus to raise its EBIT estimates to the tune of 5%.