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 2.39 billion, both growing 4% year-on-year.

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

• International sales declined 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.

• Despite macroeconomic headwinds in Türkiye, maintained market share and expanded customer base.

Financial highlights

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

• EBITDA margin for nine months 2024 was 20.1%, down from 21.2% in 2023; Q3 2024 EBITDA margin was 19.3%.

• Net income margin held steady at 8.8% for nine months 2024.

• Operating profit for nine months 2024 was TRY 3,940 million, with an operating margin of 14.6%.

• Net cash from operating activities was TRY 2,801 million; capex was TRY 827 million.

Outlook and guidance

• 2024 revenue growth guidance revised to 60%+ (previously 70%±5%) due to economic slowdown in Türkiye.

• EBITDA margin guidance lowered to 18.5% (exc. IFRS16) and 22% (inc. IFRS16).

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

• Store expansion plan increased to 17 net new stores and 15 store expansions in Türkiye.

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