Finnish fashion and lifestyle company, Marimekko, has seen impressive results for the year ending December 31, 2019, and is preparing for a successful 2020. The company experienced a boost in the final quarter, thanks to strong holiday sales and international success. In order to further its growth, Marimekko plans to invest significantly in expanding internationally, with a particular focus on the Asia-Pacific region, especially Japan. The company aims to enhance its omnichannel retail experience, expand its store network, and strengthen its digital business. This year, Marimekko plans to open approximately 10 new Marimekko stores and shop-in-shops. Additionally, the company intends to increase its marketing efforts to raise global awareness and further develop its competencies in international business.

Throughout the year, Marimekko saw a 12% increase in net sales, reaching €125.4 million, and a significant improvement of 40% in comparable operating profit, totaling €17.1 million. The company attributes its success to the growth in sales and improved sales margins. CEO Tiina Alahuhta-Kasko expressed her satisfaction with the company’s performance and stated that they are moving towards their long-term financial goals. In Finland, which accounts for half of Marimekko’s revenues, full-year sales increased by 12%, with retail sales exhibiting a particularly positive trend. In international markets, the company achieved a total growth of 12%, driven mainly through wholesale and licensing income in the Asia-Pacific region and wholesale in EMEA.

Marimekko also highlighted its remarkable growth in the digital sector, with online sales experiencing vigorous growth. In the fourth quarter, sales rose by 17% to €34.7 million, driven by successful holiday trading and growth in retail and wholesale in Finland, as well as increased wholesale and licensing income in Asia-Pacific. The company’s operating profit for the final quarter reached €3 million, compared to €1.2 million the previous year. Despite higher fixed costs, Marimekko remains optimistic about its 2020 net sales outlook and expects higher revenues compared to the previous year, with comparable operating profit estimated to be at the same level or higher.

Marimekko emphasized its dedication to achieving stronger growth and profitability by establishing an internationally recognized and desirable brand that appeals to a broad global customer base. The company emphasized the positive impact of its collaboration with Uniqlo on international brand awareness. Marimekko also mentioned the success of its efforts to modernize its collections, particularly in the fashion and bags categories.

However, Marimekko acknowledged the uncertainty and potential negative impact of the coronavirus on sales, profitability, and the global supply chain. Nonetheless, the company believes that the demand for its products in the Asia-Pacific region will continue to grow in the long term.

In conclusion, Marimekko remains optimistic about its future and is determined to achieve its long-term goals of strong growth and profitability. With its strategic focus on international expansion and investment in digital business, Marimekko is well-positioned to capitalize on its recent success and continue to thrive in the fashion industry.

Useful links:
1. Marimekko Official Website
2. Marimekko Store Locator