In the first quarter of the year, Marimekko has shown impressive growth and profitability, with a 13% increase in net sales and a doubling in comparable operating profit. The company’s success can be attributed to various factors, including the timing of Asia Pacific wholesale deliveries and strong retail sales in Finland. Net sales soared to €27.1 million, with all markets experiencing growth. Particularly, international sales spiked by 18% to €14.3 million, while Finnish sales saw a 7% rise. Additionally, the EMEA region also performed well.
The surge in profitability, reflected in the operating profit rising to €2.6 million, was driven by the combination of sales growth and improved margins. Noteworthy is the increase in full-price sales, which played a significant role in driving the positive financial outcomes.
Looking towards the future, Marimekko anticipates higher net sales for 2019 compared to the previous year, although comparable operating profit is expected to remain stable. President and CEO Tiina Alahuhta-Kasko expressed contentment with the company’s performance in Q1, emphasizing the brand’s new direction and updated collections’ swift and favorable impact on the domestic market. The importance of expanding e-commerce, especially in the Asian market where Marimekko has a strong presence, was also highlighted.
Marimekko has made investments in enhancing brand recognition and online sales, particularly in countries like China. Leveraging platforms such as Zalando, the company aims to widen its consumer base and enhance product availability. An integrated approach to online and offline retail experiences remains a focal point for Marimekko, aiming to provide customers with a seamless and inspiring journey. Initiatives such as the shoppable Marimekko home during Milan Design Week exemplify this commitment, allowing customers to buy products or entire décor sets through an online app.
The success achieved by Marimekko in the first quarter, coupled with its strategic emphasis on e-commerce and innovative retail experiences, bodes well for the brand’s future growth and profitability.
For more information on Marimekko’s latest collections and news, visit their official website here.
To explore Marimekko products on Zalando, click here.
