Koton (KOTON) 3Q25 Financial Results

We view Koton’s (KOTON) 3Q25 results as slightly negative. In 3Q, high campaign intensity and the need to balance pricing discipline put pressure on margins; however, thanks to effective inventory and cost management, domestic gross profitability remained strong. For the remainder of the year, management has revised its year-end revenue outlook under TMS 29 from “low single-digit growth” to “flat / slightly contracting”. Our medium- to long-term investment thesis continues to be supported by international scale-up, improvements in the product/channel mix and a normalisation in financial expenses. We maintain our 12-month target price at TL 27.00 and our BUY recommendation.