Marimekko, a renowned Finnish design house celebrated for its vibrant and striking prints, saw a positive upturn in its performance during the third quarter of the year. The company reported a surge in both sales and profits, attributing this growth to strategic initiatives implemented and improvements in wholesale turnover.
In the period leading up to September 30, Marimekko experienced a notable 10% increase in net sales, reaching €38 million. The rise in sales was predominantly driven by a strong showing in the wholesale sector in Finland and the EMEA region. The Finnish wholesale sector received a boost from one-time promotional deliveries, contributing to the overall positive performance. However, retail sales faced challenges amidst the global pandemic, with a slight decline observed. A silver lining was the sustained robust performance of online sales, offsetting some of the losses in physical retail. Sales in Finland remained steady compared to the previous year, with the inclusion of sales postponed due to logistical hurdles in the prior quarter.
Operating profit also saw a significant rise, climbing to €10.5 million from €7.8 million. The increase in earnings was supported by a reduction in fixed costs, coupled with the uptick in sales. Marimekko leveraged its own cost-cutting measures along with government subsidies offered in different countries to cushion the impact of the pandemic.
As the company looks ahead, it anticipates that net sales for the year will be lower than the previous year. Comparable operating profit is projected to remain at a similar level or possibly slightly lower. President and CEO Tiina Alahuhta-Kasko underscored how strategic adjustments in wholesale sales and quick adaptation have enabled Marimekko to drive sales and enhance results during a challenging period.
Alahuhta-Kasko emphasized the significant influence the global pandemic has had on the fashion industry and retail sector. Marimekko’s agility in adapting swiftly, combined with its globally appealing brand, diverse product lineup, and distribution model, have been instrumental in navigating through this unprecedented crisis. The surge in consumer interest in home decor has led to impressive growth in sales of Marimekko’s home products, while the relaxed style of their ready-to-wear collection has resonated with customers during these uncertain times. Despite the decline in physical retail traffic, the company has managed to offset some of these losses through strong online sales and substantial growth in wholesale.
The evolving consumer behavior and market dynamics witnessed this year will shape Marimekko’s future distribution strategies, as the brand continues to navigate through the challenges presented by the ongoing pandemic.
Useful links:
1. Marimekko Official Website
2. Forbes Article on Marimekko’s Global Success
