Marimekko, the Finnish fashion company, has announced its second quarter results, which show positive growth in net sales and improved performance. Net sales increased by 16% to €38 million, mainly driven by a significant rise in retail sales in the domestic market. International sales also experienced modest growth, with a 5% increase. However, changes in the wholesale delivery method compared to the previous year hindered the rate of growth for international sales. Marimekko expects international net sales to grow substantially for the whole year.
Operating profit also saw improvement, reaching €5.7 million compared to the previous year’s €4.9 million. Comparable operating profit grew by 17%, representing 15% of net sales. In the first half of the year, net sales rose by 20% to €74 million, with Finland experiencing a 26% increase and international sales growing by 13%. Operating profit increased to €12.3 million from €10.5 million.
Marimekko has been actively expanding its reach by collaborating with brands like Ikea and Mansur Gavriel, as well as opening new stores. During the second quarter, the company opened two new Marimekko stores in China and Hong Kong. CEO Tiina Alahuhta-Kasko commented that the company has been investing in the necessary elements for long-term international growth, which has led to higher marketing and personnel expenses. Additionally, Marimekko is facing increased costs due to a general rise in material and logistics costs, as well as disruptions in the global supply chain.
Alahuhta-Kasko acknowledged the uncertainties in the operating environment, global economy, rising inflation, and interest rates that may negatively impact consumer purchasing power and behavior in some markets for the rest of the year. However, Marimekko is actively working to mitigate the negative effects of supply chain disruptions and increased costs. The company believes that its growing brand popularity, collections catering to a diverse customer base, and continuous improvement of its omnichannel customer experience will position it well to achieve sales growth even in a more challenging market environment.
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