Interim Report 1 – 9/2024, 6 November 2024:
“Marimekko continued to progress well in its SCALE growth strategy in the third quarter in spite of the challenging market situation. Our own channels in Finland and other market areas developed well, and our international net sales grew. Our operating profit margin was at an excellent level.
Marimekko’s net sales for the third quarter were almost on a par with the record high achieved in the comparison period, amounting to EUR 47.2 million (47.9). As previously estimated, non-recurring promotional deliveries in the wholesale sales in Finland were lower than in the strong comparison period, which reduced net sales. On the other hand, net sales were increased by the positive development of retail sales in all market areas, especially Finland. Retail sales in the important domestic market grew by eight percent despite the continued challenging market situation. This speaks not only to the appeal of the Marimekko brand but also the excellent work done by everyone at Marimekko in constantly changing circumstances, which enables our commercial agility. Total net sales in Finland decreased by nine percent. International sales grew by nine percent in the third quarter, with wholesale sales growing in the Asia-Pacific region and Scandinavia, and retail sales developing well in all market areas.
Our comparable operating profit for July–September was EUR 11.1 million (13.1), and the comparable operating profit margin remained at an excellent level at 23.5 percent of net sales (27.4). Operating profit was affected particularly by higher fixed costs, which were due to planned investments in the brand marketing of the 60th anniversary of the Unikko print and increased personnel expenses, among other factors. Our financial position remained strong.
In January–September, our net sales grew by four percent and amounted to EUR 128.6 million (123.5). Our comparable operating profit came to EUR 22.7 million (23.7), representing 17.6 percent of net sales (19.2).
In our growth strategy, we have defined a sharpened creative vision to speak to a wider global audience as one of our success factors. One visible example of our long-term efforts to develop our brand and collections is our first denim collection Marimekko Maridenim, which arrived in stores in August. Marimekko Maridenim pieces complement our existing lifestyle assortment and they have been designed following the Ellen MacArthur Foundation’s Jeans Redesign Guidelines, which are based on the principles of a circular economy. Influencers and members of the Marimekko customer community came together around the world to see our first denim products at our impressive launch events organized for the new product category in locations such as Shanghai, Tokyo, New York and Helsinki. The Marimekko Maridenim collection has been enthusiastically received by consumers.
The 60th anniversary of the Unikko print, which has brought a special splash of color to the entire year, was again prominently featured in our marketing in the third quarter. At a fashion show held in Taipei in August, we celebrated the Unikko print, Marimekko Maridenim and the first store in Asia featuring our newest store concept. In September, the iconic print was in limelight during Helsinki Design Week at the Bar Unikko pop-up restaurant. The concept was a repeat of our very popular pop-up café at Milan Design Week earlier this year. The stunning Unikko design also plays the main role in the silver jewelry collection created in collaboration with Kalevala Jewelry, which arrived in stores in October. At the same time, our eyes are also on the future and at our show at Copenhagen Fashion Week in August, we presented our first collections for 2025 to a large audience of international media, influencers, buyers and friends of Marimekko.
In the development of our omnichannel retail network, the most significant event in the third quarter concerned our new online store platform. Following a successful pilot carried out in the United States in the spring, the new platform was expanded to all of our other markets in September. The new platform enables our online store to simultaneously provide an even more personalized customer experience as well as plenty of opportunities for automation, among others. Our network of physical stores also developed, with a new Marimekko store opened in Shanghai and five pop-up stores around Asia, for example.
In September, we organized our second Capital Markets Day, at which Marimekko’s top management elaborated on the progress of the SCALE strategy during the first 18 months of the strategy period. At the event, the company also discussed the previously described growth and profitability drivers to achieve its long-term financial targets. Marimekko’s strong financial position and the positive development of the business provide us with excellent opportunities to continue our work to scale up our profitable growth and expand the Marimekko phenomenon and community around the world.”
Tiina Alahuhta-Kasko