Marimekko, the Finnish design company known for its vibrant patterns, experienced a slight decline in sales and operating profit during the first quarter of the year. Sales dropped by 2% to €35.3 million, mainly due to a decrease in Finnish wholesale and a lower licensing income in the EMEA region. However, the company saw an increase in retail turnover in Finland and growth in international wholesale, which helped boost net sales.

Though the results for Q1 were weaker, Marimekko remains positive about its full-year net sales, expecting growth both domestically and internationally. The company reported an operating profit of €3.8 million, a decrease from €6.6 million in the same period last year. This decline was primarily attributed to lower licensing income and an increase in fixed costs.

Marimekko’s President and CEO, Tiina Alahuhta-Kasko, stated that the results were in line with expectations and highlighted the positive development of domestic retail sales, which saw a growth of 12%. The company also experienced a 9% increase in omnichannel retail sales worldwide and an 8% growth in international wholesale.

To drive future growth, Marimekko is focusing on its new strategy period, with a strong emphasis on international markets, particularly in Asia. The company believes that Asia presents the most important geographical area for its expansion plans. In Q1, Marimekko opened two new stores in Beijing, expanded its e-commerce activities in China, and launched pop-up stores in Japan and Taiwan. Furthermore, the company organized a Marimekko fashion show in Thailand to showcase its upcoming Spring/Summer 2023 collection.

These strategic initiatives in Asia paid off, as Q1 sales in the Asia-Pacific region increased by an impressive 16%. It is worth mentioning that this growth was compared to a period that saw some wholesale deliveries from Q4 2021 being moved to Q1 2022, making the year-over-year increase even more significant.

Marimekko’s focus on scaling its business and expanding into international markets aligns with its long-term vision. By expanding its omnichannel retail network and strengthening its presence in Asia, the company aims to leverage the strong appeal of its brand and seize the market opportunities in the region. Despite the challenges faced in Q1, Marimekko remains optimistic about its future prospects and is confident in its ability to deliver strong results throughout the year.

Useful links:
1. Marimekko Official Website
2. Marimekko Stock Information