In This Article:
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Consolidated Sales: TRY27.072 billion, 4% year-on-year growth for nine months 2024.
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Turkey Retail Sales Growth: 7% year-on-year for nine months.
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Turkey Online Sales Growth: 9% year-on-year for nine months.
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EBITDA: TRY5.450 billion with a 20.1% margin year-to-date.
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Net Income: TRY2.390 billion, 4% year-on-year growth, with an 8.8% net income margin.
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Gross Margin: 51.4% for nine months, improving 230 basis points year-on-year.
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International Revenue: 0.5% growth in constant currency in Q3, 4.6% contraction for nine months.
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Store Expansion: 10 new stores opened, 1 closed, reaching 345 stores in Turkey by end of October.
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CapEx: TRY827 million, 3.1% of sales for nine months.
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Net Cash Position: TRY3.3 billion at the end of nine months.
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Revised Year-End Guidance: Consolidated revenue growth of 60%-plus, EBITDA margin of 18.5%-plus excluding IFRS 16.
Release Date: December 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mavi Giyim Sanayi ve Ticaret AS (IST:MAVI) ranked 8th on TIME's World's Best Companies Sustainable Growth 2025 list, highlighting its commitment to sustainable growth.
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The company acquired over 400,000 new customers in the third quarter, demonstrating strong brand appeal.
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Turkey retail operations showed resilience with a 3.6% growth in volume despite economic challenges.
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Online sales in Turkey grew 7% in inflation-adjusted real Turkish lira terms and 12% in volume, driven by effective marketing and CRM efforts.
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Mavi's North America business and export markets contributed positively to international sales growth.
Negative Points
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Economic slowdown and anti-inflationary measures in Turkey have led to lower purchasing power and softer consumer demand, impacting sales.
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International revenue contracted by 4.6% over nine months due to macroeconomic weaknesses and operational challenges in Europe.
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Gross margin declined by 140 basis points in the third quarter, affected by lower consumer demand and increased markdowns.
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EBITDA margin deteriorated by 560 basis points year on year, driven by higher employee costs and weak sales performance.
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Inventory levels increased due to warm weather affecting jacket sales, potentially leading to higher markdowns in the future.
Q & A Highlights
Q: Does Mavi have plans to invest in countries with lower labor costs in the future? A: Ahmet Yavuz, CEO, stated that Mavi is committed to Turkey due to its strategic advantages in retail and quality. However, they are exploring nearshoring activities in regions like Georgia, Egypt, and the Balkans to source similar quality products at better margins.