BGC Partners: MAVI / Company Update / BUY (Maintained)
Mavi will pull through a rather stormy 2019 relatively unscathed… 2019 has been a transition year with headwinds from a higher cost base after the TL depreciation in Aug/Sep ’18, surging inflation and a weak consumer sentiment. Mavi will end 2019 slightly lower than original guidance, with ~21% revenue growth (vs. 25% initially) and ~14% pre-IFRS EBITDA margin (vs. 14.5% initially). The silver lining though is that the reasons for the shortfall are not indicative of ongoing, structural problems. The weak consumer sentiment in 1Q, alongside a strong TL pushing international revenue down are the main culprits. Mavi, in fact, raised its LFL revenue growth guidance for its core Turkey retail business to 20% from 18%, a solid indication of the brand’s resonance with the consumer.Mavi Giyim Sanayi ve Ticaret AS is a Turkey-based company, which designs and manufactures apparel and accessories, under the Mavi brand, for both women and men. The Company offers pants, jackets, shirts, shorts, dresses, skirts, and joggers. The Company operates more than 390 mono-brand Mavi stores with particular presence in Turkey, the United States (following the acquisition of Mavi USA), Canada (following the acquisition of Mavi Canada), Europe (centered on Germany) and Russia, more than 5,000 global points of sale, as well as an online store. It has a retail base in Turkey with more than 200 mono-brand retail stores, more than 60 franchise-operated mono-brand retail stores and more than 400 multi-brand points of sale across the country. Its wholesale partners include Nordstrom, Bloomingdale's and Peek & Cloppenburg.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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