May 16, 2023
Marimekko has weaker Q1 but focus on Asia will be key
May 16, 2023
Marimekko’s Q1 results on Tuesday showed a 2% sales drop and comparable operating profit below the record-high comparison period a year ago.
Sales fell to €35.3 million due to a decline in Finnish wholesale and lower licensing income in the EMEA region. But net sales were helped by increased retail turnover in Finland and growing international wholesale.
With the lower licensing income take out of the mix, international sales were almost on a par with the comparison period.
And full-year net sales are estimated to grow both in Finland and internationally.
Operating profit fell to €3.8 million (from €6.6 million) due to a lower relative sales margin, “mainly weakened by lower licensing income, and an increase in fixed costs compared to the same period the previous year”.
President and CEO Tiina Alahuhta-Kasko said the results were as expected but “the strong appeal of our brand was demonstrated by the continued positive development of the domestic retail sales, with growth of 12%”.
Globally its omnichannel retail sales increased by 9% while international wholesale sales grew by 8%.
The company also said it has launched a new strategy period from the beginning of this year and its focus will be on “scaling our business and growth, especially in the international markets”.
It will focus on Asia as the most important geographical area for its international growth and will continue to develop its omnichannel retail network in these markets.
That was already seen in Q1 with two new stores opened in Beijing. It also expanded its e-commerce activities in China to another online sales platform.
In addition, two pop-up stores in Japan and one in Taiwan were opened, while initiatives such as a Marimekko fashion show for SS23 in Thailand made an impact.
It all helped Q1 sales in Asia-Pacific region jump by 16%, even though the comparison period had been boosted by some of the wholesale deliveries from Q4 2021 being transferred to Q1 2022.
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