Marimekko, the renowned Finnish design house known for its iconic prints and textiles, has announced promising results for the first nine months of 2022, despite ongoing uncertainties caused by the pandemic. The company has witnessed a steady rise in both sales and profits.
During this period, net sales grew by 21% to reach €104.2 million, although the rate of growth was slower in the third quarter. Within the latest three months, net sales increased by 11% to €42.4 million. It is important to note that the first half of the year offered more favorable comparisons due to the onset of the pandemic in 2020.
While most of Marimekko’s stores remained open in the third quarter, the company experienced a decline in international sales due to efforts to control grey-market exports. Conversely, sales within Finland saw a noteworthy surge of 25% during this period.
The surge in net sales can be primarily attributed to a favorable trend in wholesale sales in Finland, as well as non-recurring promotional deliveries. However, Marimekko observed lower wholesale sales in the EMEA region due to export control activities. Additionally, licensing income in the Asia-Pacific region decreased.
Despite facing higher fixed costs, the company managed to significantly improve its operating profit, reaching €13.3 million compared to €10.5 million the previous year. Marimekko CEO Tiina Alahuhta-Kasko credited this success to the company’s long-standing efforts in developing the brand. Alahuhta-Kasko emphasized the commitment to strengthening areas such as sustainability and brand awareness in order to support long-term international growth.
Marimekko has actively pursued collaborations to enhance its visibility and expand its customer base. One recent collaboration involved Adidas, resulting in a limited-edition sports apparel collection. The brand also expanded its presence in Japan through a pop-up store at Dover Street Market in Tokyo’s Ginza district, which featured a specially created collection.
Despite the positive results, Marimekko acknowledges the ongoing instability caused by the pandemic in its markets. The company recognizes the significant uncertainties associated with the trend in net sales and earnings. The impact of Covid-19 on the fashion industry and specialty retail sector has been described as one of the worst crises in decades. However, Marimekko remains reasonably confident about the future and estimates that both wholesale and retail sales will continue to increase in 2021, with a particular boost expected in wholesale sales.
Useful links:
1. Marimekko Official Website
2. Adidas Official Website
