Finnish design company Marimekko has reported positive results for Q2, with growth in net sales and improved performance. Net sales rose by 16% to €38 million, driven by a significant increase in retail sales in Finland. International sales also saw a modest increase of 5%, although this growth was hindered by a change in wholesale deliveries compared to the previous year. Despite this, Marimekko expects international net sales to show clear growth for the full year.

Operating profit also showed improvement, increasing to €5.7 million from €4.9 million. Comparable operating profit grew by 17% and accounted for 15% of net sales. Looking at the first half of the year overall, net sales increased by 20% to €74 million, with Finland experiencing a 26% rise and international sales increasing by 13%. Operating profit rose to €12.3 million from €10.5 million.

Marimekko has been actively expanding its business through collaborations with well-known brands such as Ikea and Mansur Gavriel, as well as opening new stores. In Q2 alone, the company opened two new Marimekko stores in China and Hong Kong. CEO Tiina Alahuhta-Kasko emphasized the company’s focus on long-term international growth, as demonstrated by increased investments in marketing and personnel. However, Marimekko is also facing challenges related to rising material and logistics costs, as well as disruptions in the global supply chain.

Alahuhta-Kasko recognized the uncertainties in the operating environment and global economy, including general cost inflation and rising interest rates, which may negatively impact consumer purchasing power. Despite these challenges, Marimekko remains optimistic about its position in the market. The company believes that its strong brand appeal, collections that cater to a diverse customer base, and continuous improvement of the omnichannel customer experience will enable it to increase sales even in a more challenging market situation.

Useful links:
1. Marimekko Official Website
2. CNBC