Fiskars Corporation
Interim report
April 24, 2025 at 8:30 a.m. (EEST)

Fiskars Corporation Interim Report for January-March 2025

Positive start to the year - comparable EBIT improved, first organic growth quarter since 2022

This release is a summary of Fiskars Corporation's Interim Report for January-March 2025 published today. The complete Interim Report with tables is attached to this release as a pdf-file. It is also available at https://fiskarsgroup.com/investors/reports-and-presentations/annual-and-interim-reports/ and on the company website at www.fiskarsgroup.com. Investors should not rely on summaries of financial reports only, but should review the complete reports with tables.

January-March 2025 in brief:

• Comparable net sales¹ increased by 1.7% to EUR 291.9 million (Q1 2024: 286.9). Reported net sales increased by 3.2% to EUR 291.9 million (282.9).
• Comparable EBIT² increased to EUR 26.8 million (25.1), or 9.2% (8.9%) of net sales. EBIT decreased to EUR -4.6 million (6.4).
• Cash flow from operating activities before financial items and taxes increased to EUR -2.1 million (-5.5).
• Free cash flow increased to EUR -17.4 million (-20.1).
• Comparable earnings per share were EUR 0.15 (0.19). Earnings per share (EPS) were EUR -0.16 (0.03).

1. Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.
2. Items affecting comparability in EBIT include items such as restructuring costs, impairment or provisions charges and releases, acquisition-related costs, and gains and losses from the sale of businesses. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
    

Guidance for 2025 (unchanged)

Fiskars Corporation expects comparable EBIT to improve from the 2024 level (2024: EUR 111.4 million).

Assumptions behind the guidance

The operating environment has become more unpredictable following the U.S. tariff announcements in early April 2025. These tariffs are expected to increase sourcing costs directly, particularly for products imported from China. They may also have indirect negative impacts on consumer confidence in the U.S. as well as across geographies and therefore impact demand for Fiskars Group's key categories. The U.S. represents approximately 30% of Fiskars Group's net sales and approximately 50% of Business Area Fiskars' net sales.

Fiskars Group continues to take proactive measures to mitigate cost pressures and preserve margin resilience, including pricing adjustments and ongoing productivity initiatives. As assessed with the current information, the Group expects that its actions can largely mitigate adverse direct impacts of tariffs. However, visibility in the market is exceptionally limited and the situation is continuously evolving.

Fiskars Group is also subject to fluctuations in the U.S. dollar. While a weakening U.S. dollar benefits the company in currency transactions due to its net-buy position, it has a negative impact through translation risk.

The direct effects of tariffs will primarily concern Business Area Fiskars due to its significant business operations in the U.S., while the more unpredictable indirect impacts on consumer confidence may affect both Business Areas. The first half of the year is important for Business Area Fiskars and its gardening category as well as the back-to-school season. Historically, approximately 70% of Business Area Fiskars' annual EBIT is delivered in the first half of the year. As a whole, the Group's EBIT generation is tilted towards the end of the year, highlighting the importance of the second half and especially the fourth quarter. During this period, the development of consumer sentiment and Business Area Vita's volumes will play a significant role.

President and CEO, Fiskars Group, Nathalie Ahlström:

"We delivered our first organic growth quarter since the second quarter of 2022, with comparable net sales increasing by 2% in a tough market environment. The increase was driven particularly by distribution gains achieved by the Fiskars brand as well as good growth delivered in Royal Copenhagen and Moomin Arabia. Sales in Direct-to-Consumer (DTC) channels grew by 9%, which is testament to the strength of our brands. Our comparable EBIT increased to EUR 27 million, driven by the growth in net sales, as well as continued cost management. This increase was achieved even considering our significant investments in demand creation, which ramped up in the first quarter as planned.

We can all be proud of this positive start to the year. That said, we must acknowledge the current extreme market turmoil and barriers to trade, as well as their impact on market visibility for the full year. The operating environment has become more unpredictable following the U.S. tariff announcements in early April 2025. We continue to take proactive measures to mitigate cost pressures and preserve margin resilience. With the information at hand, we expect that our actions can largely mitigate adverse direct impacts of tariffs. However, visibility in the market is exceptionally limited and the situation is continuously evolving.

Coming back to the first quarter, we made good progress regarding the separation of our Business Areas (BA) into operationally independent companies. The organization was already operationally in force two months ahead of schedule in February. We have already started to see the benefits of this, with the Business Areas taking independent P&L decisions, for example, related to their cost management practices.

In recent years, we have been transforming Vita and carefully building its foundations. In April, we were happy to announce the next step in Vita's transformation - Daniel Lalonde's appointment as the new CEO of Business Area Vita. With Daniel's impressive track record in building world-class luxury brands, I am convinced that he will bring visionary leadership to Vita to tap into long-term growth opportunities.

Looking at Business Area Vita's financials, its comparable net sales in the first quarter increased by 1%, especially as the Royal Copenhagen and Moomin Arabia brands continued their good growth. Both brands are also celebrating significant anniversaries this year, which we are leveraging commercially. In addition, one year since its brand renewal, Iittala also delivered a good quarter. BA Vita's comparable EBIT increased to EUR 1.3 million, and its gross margin grew by 90 bps, reaching 56.3%.

Business Area Fiskars' first quarter comparable net sales grew by 3%, driven particularly by distribution gains in the U.S. and successful campaigns in Europe, for instance in Germany. Our team in Finland also brought in good growth. BA Fiskars' comparable EBIT increased to EUR 30.6 million, and its gross margin decreased by 160 bps to 40.7% due to high base effect.

Fiskars Group's strategy is built on four transformation levers - commercial excellence, Direct-to-Consumer (DTC), the U.S., and China. Looking at the first quarter of 2025, our gross margin, which is our key performance indicator for commercial excellence, decreased by 80 bps to 47.5%. Comparable DTC sales grew by 9%, thanks to good growth in both online and offline channels. Comparable net sales in China decreased by 7% due to continued low consumer confidence. In the U.S., comparable net sales increased by 6%, driven by the Fiskars brand's distribution gains.

When it comes to sustainability, I am happy to announce that we have achieved the Leadership level, receiving an A- rating for our climate actions in an assessment by the global non-profit organization CDP.

We take pride in fostering an ownership culture within the company, and during the first quarter, we announced the third plan period of our global employee share savings plan, "MyFiskars". Already 13% of all our employees and 24% of office employees have taken part in the first two programs, demonstrating our people's commitment to the company and trust in our navigation of challenging market conditions.

We made a positive start to the year, with the first organic growth quarter since the second quarter of 2022. While the market environment remains volatile with exceptionally limited visibility, we continue the year ahead from a strong position and are focusing on the actions in our own hands."

Group key figures

1. Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.
2. In Q1 2025, items affecting comparability were mainly related to Digital & IT assets write-off. The write-off concerns Fiskars Group's transition from its digital platform to SaaS-based Direct-to-Consumer services.
3. EBIT excluding items affecting comparability. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
4. EBITDA excluding items affecting comparability. Comparable EBITDA is not adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.

FISKARS CORPORATION

Nathalie Ahlström
President and CEO

Webcast

A results webcast will be held on April 24, 2025 at 11.00 a.m. (EEST). It will be held in English and can be followed at https://fiskars.events.inderes.com/q1-2025

Management presentation is followed by a Q&A session. Questions can be placed through the webcast chat function or by phone. To ask questions by phone, the participant is required to register at https://palvelu.flik.fi/teleconference/?id=50051613. After the registration you will receive the phone number and conference ID to access the conference. If you wish to ask a question, please press *5 on your telephone keypad to enter the queue.

Presentation materials will be available at www.fiskarsgroup.com.

An on-demand version of the webcast will be available on the Group's website. Personal details gathered during the event will not be used for any other purpose.

Further information:

Sanna Hellstedt, Director, Investor Relations (interim) and External Communications, tel. +358 40 553 3151

Fiskars Group in brief

Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven brands for indoor and outdoor living. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth. In 2024, Fiskars Group's global net sales were EUR 1.2 billion and we had close to 7,000 employees. We have two Business Areas (BA), Vita and Fiskars. 

BA Vita offers premium and luxury products for the tableware, drinkware, jewelry and interior categories. Its well-known brands include Georg Jensen, Royal Copenhagen, Wedgwood, Moomin Arabia, Iittala and Waterford. In 2024, BA Vita's reported net sales were EUR 605 million. Already 50% of BA Vita's net sales comes from direct-to-consumer sales, comprising approximately 500 stores and approximately 60 e-commerce sites.

BA Fiskars consists of the gardening and outdoor categories, in addition to the scissors and creating, as well as cooking categories. The brands include Fiskars and Gerber. In 2024, BA Fiskars' net sales were EUR 547 million. 

Read more: fiskarsgroup.com