Inside information, profit warning: Fiskars Corporation lowers its guidance for 2023 and publishes preliminary information for Q3 2023

Fiskars Corporation
Inside information
October 12, 2023 at 11:55 a.m. EEST

Inside information, profit warning: Fiskars Corporation lowers its guidance for 2023 and publishes preliminary information for Q3 2023

Fiskars Corporation lowers its guidance for 2023 and publishes preliminary figures for the third quarter of 2023. The company now expects comparable EBIT in 2023 to be in the range of EUR 100-120 million. Previously the company expected comparable EBIT to be in the range of EUR 120-130 million (2022: EUR 151.0 million). The guidance update is based on challenging market conditions in the second half of the year as well as the impact from the Georg Jensen acquisition.  

For the third quarter of 2023, comparable net sales are expected to decline by 13% to approximately EUR 240 million. Comparable net sales exclude the impact of exchange rates. Reported net sales are expected to decline by 18%. Comparable EBIT is expected to be approximately EUR 17 million in the third quarter. The figures are based on preliminary, unaudited information.

Rationale for updating the guidance

Challenging market conditions continue to have a negative impact

Challenging and volatile market conditions have continued in the third quarter and are expected to continue in the fourth quarter, which is typically the most important season for Business Area Vita. Low consumer confidence in the company’s main markets as well as retailer customers’ focus on inventory management are affecting demand and sales more negatively than earlier anticipated.

The net impact from the Georg Jensen acquisition is expected to be positive

In deviation from the initial estimate, the net impact from the Georg Jensen acquisition on Fiskars Group's comparable EBIT in 2023 is expected to be positive as the brand's fourth quarter EBIT contribution is expected to exceed the negative impacts from the purchase price allocation. Based on estimates of the purchase price allocation, the negative impact from amortization of intangible assets on the comparable EBIT in 2023 is not expected to be material.

Purchase price allocation driven income statement impact from inventory fair valuation will be reported in items affecting comparability and will thus not impact the comparable EBIT in 2023 and Fiskars Corporation’s guidance. Inventory fair valuation is, however, expected to have a negative impact on earnings per share in 2023.

New guidance for 2023:

Fiskars Corporation expects comparable EBIT to be in the range of EUR 100-120 million  (2022: EUR 151.0 million).

Previous guidance for 2023:

Fiskars Corporation expects comparable EBIT to be in the range of EUR 120-130 million (2022: EUR 151.0 million).

Georg Jensen acquisition was completed on October 1, 2023

On September 14, 2023, Fiskars Corporation announced the acquisition of Georg Jensen, the renowned Danish luxury lifestyle brand. The transaction was completed on October 1, 2023 for a debt free, cash free purchase price (enterprise value) of EUR 155 million (USD 165 million)[1], subject to a post completion adjustment based on the level of net working capital and cash and debt in the acquired business on the closing date. The acquisition was financed with debt and Fiskars Group agreed on bridge financing. The company plans to convert the bridge financing into long-term financing.

Fiskars Corporation will publish its Interim Report for January-September 2023 on October 26, 2023 at approximately 8.30 a.m. EEST. A webcast on the third quarter results will be held on the same day at 2:00 p.m. (EEST).

FISKARS CORPORATION

Nathalie Ahlström
President & CEO

Further information:

Essi Lipponen, Director, Investor Relations, tel. +358 40 829 1192

Fiskars Group in brief

Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven brands for indoor and outdoor living. Our brands include Fiskars, Georg Jensen, Gerber, Iittala, Moomin Arabia, Royal Copenhagen, Waterford, and Wedgwood. In 2022, our brands were present in more than 100 countries, we had approximately 350 own stores and close to 7,000 employees. Our global net sales were EUR 1.2 billion in 2022.

We are driven by our common purpose: Pioneering design to make the everyday extraordinary. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth.

Read more: fiskarsgroup.com