Marimekko, the renowned Finnish design company famous for its eye-catching prints, has announced impressive results for the third quarter of 2023. The company experienced a remarkable 9% surge in net sales, reaching a total of €47.9 million. Notably, Marimekko’s wholesale division exceeded expectations with an impressive growth rate of 17%. This growth was seen both domestically in Finland and internationally.

In Finland, net sales witnessed a 6% increase from July to September, primarily driven by non-recurring promotional deliveries that bolstered domestic wholesale. Although retail sales performed well, they fell short of the record-high levels achieved in the previous year. On the international front, Marimekko achieved even stronger growth, with sales soaring by 13%. Consequently, the company’s operating profit rose to €12.9 million, compared to €11.1 million in the previous year.

Marimekko attributes its improved operating profit to higher net sales and an enhanced relative sales margin. However, the company also faced challenges from increased fixed costs. Currently, Marimekko is in the initial stages of a strategic period that spans from 2023 to 2027. During this time, the company aims to expand its business and prioritize international growth, especially in key cities.

Building an omnichannel ecosystem and fostering a strong Marimekko community in these cities is one of the main objectives of the company’s strategy. This approach will enable Marimekko to connect with consumers through their preferred channels and at crucial moments. The implementation of this strategy in the third quarter resulted in a strengthened position in Asia and Scandinavia.

In August, Marimekko showcased its SS24 collection at Copenhagen Fashion Week to commemorate the 60th anniversary of its iconic print design, Unikko. The open-air fashion show garnered significant attention from industry professionals and media representatives, generating substantial publicity. Following that, the company unveiled its redesigned flagship store in Stockholm in September, followed by another flagship store in Copenhagen. These strategic investments aim to boost brand awareness, enhance positioning, and drive omnichannel sales in Scandinavia.

Asia has been identified as the most crucial geographical area for Marimekko’s international expansion in this strategy period. Already, the company has opened six stores in Asia during the first half of the year. In the third quarter, nine new partner-owned Marimekko stores were launched in various locations, including Singapore, Vietnam, and Malaysia. These markets present significant growth opportunities for the brand.

Looking ahead, Marimekko anticipates that its overall net sales for 2023 will surpass the previous year, with a comparable operating profit margin estimated to range between 16% and 19%. Despite the challenges posed by increased fixed costs, Marimekko remains confident in its ability to sustain growth and profitability by maintaining focus on strategic objectives and expanding its presence in key markets.

Useful links: Marimekko Official Website, CNBC Article on Marimekko’s Q3 2023 Earnings