Mavi Giyim Sanayi ve Ticaret (MAVI) Q3 2025 earnings summary

Executive summary

• Consolidated revenue reached TRY 27.1 billion in nine months 2024, up 4% year-on-year, with EBITDA at TRY 5.45 billion and net income at TRY 2.42 billion, both growing 4% year-on-year.

• Türkiye retail sales grew 7% and online sales 9% in nine months, acquiring over 1.2 million new customers and reaching 5.8 million active loyalty card members.

• International revenue contracted 4.6% in nine months, with Q3 up 0.5% in constant currency, led by North America.

• Recognized globally for sustainable growth, ranking 8th on TIME's World's Best Companies list and leading in the apparel sector.

• Continued disciplined store expansion, opening 10 new stores and expanding 10, with further growth post-October.

Financial highlights

• Gross margin improved to 51.4% in nine months 2024 from 49.1% in 2023; Q3 gross margin was 50.7%.

• EBITDA margin for nine months was 20.1%, down from 21.2% in 2023; Q3 EBITDA margin was 19.3%.

• Net income margin held steady at 8.8% for nine months.

• Operating profit for nine months was TRY 3.94 billion, with an operating margin of 14.6%.

• Cash and cash equivalents at period end were TRY 4.18 billion, down from TRY 6.36 billion at the start of the period.

Outlook and guidance

• 2024 revenue growth guidance revised to 60%+ (nominal), EBITDA margin of 18.5%+ (excl. IFRS 16), 22%+ (incl. IFRS 16).

• CapEx to be around 4% of sales, with a nominal year-on-year increase in net cash position targeted.

• Expect margin normalization and continued pressure in Q4 and early 2025 due to high base and macroeconomic factors.

• First half of 2025 expected to be neutral, with Q1 challenging due to strong prior-year base.

• November 2024 saw Türkiye retail sales up 45% and online sales up 46%; early December sales surged due to early markdowns.