Finnish lifestyle label Marimekko posted generally positive results for the second quarter and first six months of the year, with net sales in both periods increasing by 8 percent to 43.7 million euros and 81.3 million euros, respectively.
The boost was accredited to a growth of wholesale sales in Finland and Scandinavia, as well as an increase in retail sales in the brand’s home country and growth in international sales.
While for the half year, net sales in Finland grew 9 percent, for the quarter they rose 11 percent. International sales also increased, up 6 percent in both outlined periods, driven by wholesale sales in the Asia-Pacific region.
Quarterly operating profit drops but half year rises
Operating profit in the three months came to 6.1 million euros, down 7 percent compared to the same period last year. However, for the half period, there was in fact an increase of 8 percent to 11.2 million euros, while comparable operating profit rose to 11.6 million euros, reflecting 14.2 percent of net sales.
Marimekko said the drop in the second quarter was due to higher fixed costs and weakened relative sales margins, which was offset in the half year by an increase in net sales.
For 2024, net sales are anticipated to grow on the previous year’s 174.1 million euros, while comparable operating profit margin is estimated to be between 16 to 19 percent, down from the prior 18.4 percent.
The company cited developments in consumer confidence and purchasing power, particularly in Finland, as well as global supply chain disruptions and general inflation as factors that “cause volatility to the outlook”.
Despite this, Tiina Alahuhta-Kasko, president and CEO of Marimekko remained optimistic. In a release, she said: “Our continued profitable growth in spite of the prolonged weaker general market situation speaks to the desirability of our brand and the strong competitiveness of our company. We are in a good position to continue our determined efforts to scale up the global Marimekko phenomenon.”
