Marimekko, the Finnish design and textile specialist, experienced growth in its third-quarter sales despite facing tough comparisons from the previous year. The company achieved a strong operating profit margin, although operating profit itself declined. Net sales saw a 4% increase to €44.1 million, driven by higher international sales and robust retail sales in the domestic market. However, weak wholesale performance in Finland resulted in a 7% decrease in net sales within the country. On a positive note, international sales grew by 28%, with both wholesale and retail performing well in the Asia-Pacific region. The company attributed this growth partly to a change in the weighting of wholesale deliveries compared to the previous year.

Although sales showed growth, operating profit fell to €11.1 million from €13.1 million, with the operating profit margin accounting for 25.2% of net sales compared to 31% in the previous year. Rising fixed costs and increased logistics costs contributed to lower earnings for the company. Throughout the first nine months of the financial year, net sales increased by 13% to €118.1 million, with a 11% rise in Finland and a 17% increase internationally. Operating profit slightly decreased to €23.4 million from €23.6 million, reflecting the challenges faced in the third quarter.

Despite the decline in profitability compared to the previous year, Marimekko remains optimistic about the future. The company highlighted strong product initiatives and the development of its retail stores as contributing factors to its growth strategy. In July, Marimekko launched its fourth limited-edition collaboration collection with Adidas, which received positive international visibility. Furthermore, the company opened new stores in Shanghai and Copenhagen during the third quarter and presented its new Marimekko Marimade home concept in pop-up stores in Hong Kong and Taipei. These products are made with sustainable materials, demonstrating Marimekko’s commitment to environmental responsibility.

Looking ahead, Marimekko expects net sales for 2022 to surpass the previous year’s sales of €152.2 million. However, the company anticipates a lower operating profit margin of 17%–20% compared to 20.5% in the previous year. Marimekko acknowledges the continued impact of the COVID-19 pandemic on its business, with a potential decrease in consumer confidence affecting sales. Additionally, the ongoing war between Russia and Ukraine could disrupt global supply chains and impact consumer buying power, potentially affecting the company’s sales, profitability, and operational reliability. Despite these challenges, Marimekko foresees continued growth in sales in Finland, which represents half of its total sales. The Asia-Pacific region, particularly Japan and other growing Asian markets, will play a significant role in the company’s international growth strategy.

Useful links:
Marimekko Official Website
Marimekko Sustainability Initiatives