Translation: Original published in Finnish on 06/24/2026 at 07:30 am EEST

Fiskars is currently a brand house divided into two independent segments (Fiskars and Vita). Vita's earnings have clearly weakened in recent years, but we expect them to improve going forward. However, we believe the share price already reflects a significantly better earnings level, and with this year's results, the valuation (e.g., P/E 20x) is high. We reiterate our Sell recommendation and EUR 11.5 target price.

A global brand house divided into two segments

Fiskars is a consumer goods company with a broad brand portfolio, and its products focus, e.g., on home products, gardening, and outdoor activities. Fiskars undertook a long transformation journey between 2005 and 2020 to become a clear consumer product entity. However, during 2025-26, the Vita and Fiskars segments were made into independent companies, which also enables the company's division in the future. In addition to the company's historical main brand, Fiskars, the Fiskars segment includes Gerber, and the segment's largest market is the US. The Vita segment has been built through several acquisitions that have taken the company into new geographical areas and product categories. Vita’s brand portfolio includes, e.g., Royal Copenhagen, Georg Jensen, Wedgwood and Waterford, and Iittala. At the Group level, ~80% of revenue comes from the US and Europe.

Vita segment's profitability turnaround is the main earnings driver

In retrospect, we believe Fiskars Group's 2021-25 growth strategy and targets were clearly over-optimistic, given the starting point of demand supported by the COVID boom. In addition, the company's strategic growth initiatives, such as expanding into new product categories, increasing its own distribution, and investments in China, have not yielded the desired profitable growth, especially in the Vita segment. Vita aims to return to earnings growth through typical means, such as strengthening brand appeal and improving efficiency. Vita includes well-performing brands such as the Danish Royal Copenhagen and Georg Jensen, but the WWRD brands, acquired ten years ago, have performed poorly for almost the entire duration of Fiskars' ownership. Vita is targeting 4–6% growth, which we consider a realistic target. Vita aims for an adjusted EBIT margin of over 12% in 2030. Last year it was below 5%, but the average for the last 10 years is around 10%. We believe Vita's margin will improve significantly, reaching over 10% by 2030. The profitability turnaround of Vita is clearly the most important driver for the company's earnings in the coming years.

The strategy for the Fiskars segment, updated in spring 2026, is more growth-oriented than before: it aims for 3–5% annual growth in fairly mature markets. In terms of profitability, the Fiskars segment aims for an adjusted EBIT margin of over 14%, which is only about a one percentage point improvement from the current level or that of recent years. We believe the Fiskars segment will invest in, e.g., new product development and marketing, as we consider the growth target more challenging than the profitability target.

For this year, our forecasts include a clear earnings improvement, which, in addition to weak comparables, is supported by, e.g., Vita's efficiency measures and the stabilization of the US tariff situation. We have slightly cut our estimates in this report.

The stock is expensive

Fiskars' 2026 valuation multiples (e.g., P/E 20x) are clearly above our acceptable levels, and multiples will only decrease to within our targeted levels in 2028. If the company could turn to sustainable profitable growth, acceptable multiples could be slightly higher. The DCF value is roughly at the level of our target price, and our sum-of-the-parts estimates are also below the current valuation. A moderate dividend yield slightly supports the expected return, but we also expect a dividend cut. Overall, we estimate the expected return to remain negative.