Marimekko, the distinguished Finnish design and textile company, has announced a positive sales growth in its third-quarter report despite encountering various challenges. The company experienced a 4% increase in net sales, reaching €44.1 million. This growth can be attributed to higher international sales and strong domestic retail sales. However, weaker wholesale sales in Finland did impact the overall sales figure. Conversely, international sales rose by an impressive 28%, highlighting a strong performance in the Asia-Pacific region. Marimekko credited this growth partly to a shift in the weighting of wholesale deliveries compared to the previous year.
Although sales have grown, the company’s operating profit decreased from €13.1 million to €11.1 million, representing 25.2% of net sales in comparison to the previous year’s 31%. Rising fixed costs and escalating logistics expenses were identified as reasons for the decline in profit. Over the nine-month period of the financial year, net sales increased by 13% to €118.1 million, indicating growth in both the domestic and international markets. However, operating profit slightly decreased to €23.4 million, reflecting the challenges faced in the third quarter.
Despite these challenges, Marimekko remains optimistic about its future prospects. The company views strong product initiatives and the development of retail stores as drivers for future growth. Recently, Marimekko successfully launched its fourth limited-edition collaboration collection with Adidas, garnering positive international attention. Additionally, the company has expanded its presence with new stores in Shanghai and Copenhagen. It also introduced the Marimekko Marimade home concept, which was presented in pop-up stores in Hong Kong and Taipei. These initiatives are centered around utilizing sustainable materials, such as recycled, reused, natural, and biodegradable materials.
Looking ahead, Marimekko projects net sales for 2022 to surpass the previous year’s figure of €152.2 million. However, it anticipates a slightly lower operating profit margin of 17%–20% compared to 20.5% in the previous year. The impact of the ongoing Covid-19 global pandemic on consumer confidence remains a concern. Additionally, the conflict between Russia and Ukraine has the potential to disrupt global supply chains and impact consumer purchasing power and behavior. Nevertheless, Marimekko expects continued growth in its key markets, with Finland projected to experience sales growth and the Asia-Pacific region anticipated to play a significant role in the company’s international expansion.
Useful Links:
– Marimekko Official Website
– Adidas Official Website
