Finnish lifestyle design company Marimekko has announced a significant decline in net sales for the second quarter of fiscal 2020. The company reported a 20% drop in net sales, amounting to €23.3 million. This decline is mainly attributed to the challenging retail environment in Finland, North America, and Scandinavia, as well as a decrease in wholesale sales in the Asia-Pacific region.

Marimekko’s President and CEO, Tiina Alahuhta-Kasko, acknowledged the impact of the ongoing coronavirus pandemic on the global fashion industry and specialty retail sector. With discretionary consumption coming to a halt, many players in the industry have faced financial difficulties. The temporary closure of Marimekko stores worldwide due to the pandemic has further contributed to the decline in sales.

Sales in Finland were particularly affected, with a 32% decrease. On the other hand, international sales experienced a minor decline of 3%, reaching €11.9 million. Despite these challenges, Marimekko was able to adapt during the store closures by shifting its sales and marketing efforts online. The company saw strong growth in online demand for its products during the second quarter. However, Marimekko faced limitations in delivery capacity, which hindered its ability to meet the increased demand promptly.

Alahuhta-Kasko emphasized the challenging nature of the first half of 2020, marked by rapidly changing circumstances. Nonetheless, she highlighted Marimekko’s ability to learn and successfully develop new operating methods and capabilities. These newly acquired skills will prove valuable in navigating future crises similar to the ongoing pandemic.

In conclusion, Marimekko’s second-quarter results reflect the significant impact of the coronavirus pandemic, as net sales experienced a notable decline. However, the company has shown resilience by adapting to the situation and leveraging online channels. By effectively managing future challenges, Marimekko aims to strengthen its position in the market.

To learn more about Marimekko and its products, visit their official website here. Additionally, for further information on the impact of the COVID-19 pandemic on the fashion industry, you can refer to this insightful article here.