Marimekko, the renowned Finnish design company known for its vibrant prints and patterns, delivered a strong performance in the third quarter of the year. The company experienced a notable increase in both net sales and profits, demonstrating its resilience and ability to navigate challenging market conditions.
During the quarter, Marimekko achieved a remarkable growth of 11% in net sales, reaching €42.4 million. This growth was primarily fueled by the opening of the majority of the company’s own stores, which contributed significantly to its sales figures. In Marimekko’s home market of Finland, net sales saw an impressive surge of 25%, further enhancing the company’s overall performance.
However, while Marimekko experienced success in its domestic market, it faced some difficulties in the international market. Efforts to control grey market exports had an adverse impact, resulting in a 10% decline in international sales for the third quarter. Despite this setback, the company emphasized that its net sales were positively influenced by a favorable trend in wholesale in Finland. Additionally, the strong performance of wholesale was bolstered by one-time promotional deliveries.
Unfortunately, Marimekko encountered challenges in other regions. Lower wholesale in the EMEA region and decreased licensing income in the Asia Pacific region contributed to a weakened overall net sales figure. Nevertheless, the company managed to significantly improve its operating profit, surpassing last year’s figure by reaching €13.3 million compared to €10.5 million.
The increase in operating profit can be attributed to the combined effects of the sales growth and improved margins. However, Marimekko also had to contend with higher fixed costs, which negatively impacted the profit figure. As the company looks ahead to the fourth quarter, it expects fixed costs to further increase due to changes in accounting principles and investments in growth.
Despite the challenges faced in the international market, Marimekko remains committed to expanding its global reach and strengthening its brand presence. The company has been actively collaborating with various partners, including a recent collaboration with Adidas. This collaboration, which features Marimekko’s iconic prints on Adidas apparel and footwear, has been met with positive reception from consumers.
The positive sales and profit results reflect Marimekko’s ongoing dedication to innovation and driving growth. The company’s ability to adapt to changing market conditions and invest in its brand has positioned it for continued success in the future. With a strong foothold in its home market and a growing international reputation, Marimekko is well-positioned to seize new opportunities and continue delighting customers with its distinctive and timeless designs.
Useful links:
1. Marimekko Official Website
2. Marimekko Collaborations
