Marimekko, the popular Finnish fashion and lifestyle brand, has announced positive results for the third quarter. The company experienced a 9% increase in net sales, reaching €47.9 million. This growth can be attributed to strong wholesale sales both domestically and internationally.
In Finland, wholesale sales rose by 17%, while net sales in the country as a whole grew by 6% from July to September. A contributing factor to this growth was the delivery of non-recurring promotional items, which boosted domestic sales. Retail sales also performed well, although they didn’t quite reach the record levels of the same period last year. Internationally, Marimekko saw a 13% increase in sales.
For the quarter, Marimekko achieved an operating profit of €12.9 million, up from €11.1 million in the previous year. Comparable operating profit also rose to €13.1 million, from €11.1 million.
The company attributes its strong performance to increased net sales and improved sales margins. However, Marimekko did face challenges such as an increase in fixed costs, which impacted the figures negatively.
Marimekko is currently in the early stages of its 2023-2027 strategy period. The brand aims to focus on expanding in international markets, particularly in key cities, in order to create an omnichannel ecosystem and a strong community of Marimekko supporters. This strategy was evident in the third quarter, as the brand strengthened its presence in Asia and Scandinavia.
In August, Marimekko showcased its Spring/Summer 2024 collection at Copenhagen Fashion Week, celebrating the 60th anniversary of its iconic print design, Unikko. The show garnered significant attention and was attended by industry professionals.
Additionally, the brand unveiled a redesigned flagship store in Stockholm and opened a new flagship store in Copenhagen. These stores play a critical role in raising brand awareness and driving omnichannel sales in Scandinavia.
However, Marimekko’s primary focus for international growth is Asia. The company believes that the region’s growing markets, strong brand fit, and successful franchise partnership model provide a solid foundation for expanding its omnichannel presence. In the first half of the year, Marimekko opened six stores in Asia, and in the third quarter, it opened nine new partner-owned stores in various locations, including new markets like Singapore, Vietnam, and Malaysia.
Looking ahead, Marimekko expects its net sales for 2023 to surpass the previous year’s figures. The brand anticipates a comparable operating profit margin between 16% and 19%, compared to 18.2% in the previous year.
Marimekko’s strong performance in the third quarter reflects its successful efforts to expand its business and strengthen its position in key markets. With its focus on international growth and the development of an omnichannel ecosystem, the brand is well-positioned to continue its upward trajectory and maintain its status as a leading fashion and lifestyle brand.
Useful links:
1. Marimekko Official Website
2. Marimekko on Reuters
