Marimekko says Q2 sales dropped 20% to €23m
Aug 13, 2020
Marimekko, a Finnish lifestyle design company, has announced its second quarter (Q2) financial results for fiscal 2020. The company’s net sales fell 20 per cent to €23.3 million due to the retail decline in Finland, North America and Scandinavia and a decrease in wholesale sales in Asia-Pacific region during the quarter that ended on June 30.
“During the period under review, the global fashion industry and specialty retail sector faced the worst crisis seen in several decades. The coronavirus pandemic brought discretionary consumption to a halt, which has led to serious financial difficulties for many players and has already toppled several significant companies in our industry,” Tiina Alahuhta-Kasko, president and CEO at Marimekko, said in a press release. “Dramatically, due to the pandemic, the doors of most Marimekko stores around the world closed temporarily.”
Sales in Finland fell 32 per cent while international sales were marginally affected by 3 per cent to €11.9 million. Meanwhile operating profit was €2.7 million during Q2 FY20.
“When our stores were temporarily closed, we had the agility to move our sales and marketing promotions online, including our popular annual springtime Friendship Sale promotion in Finland. Strong growth in the online demand for our products continued in the second quarter too and, working together with our recently-started new logistics partner, we were not able to increase the delivery capacity of our online store as quickly as necessary,” Alahuhta-Kasko said.
“The first half of 2020 has been completely exceptional and characterised by rapidly changing circumstances. We have learned tremendously and successfully developed new operating methods and capabilities that will be useful if the pandemic is prolonged or other crises of a similar nature happen in the future,” Alahuhta-Kasko said in the release.
Copyright © 2020 Fibre2Fashion. All rights reserved.