Financial Statements Bulletin 2023, 15 February 2024:
“Marimekko’s net sales continued to grow, and our operating profit improved. International sales grew clearly. Our determined work to scale up our profitable growth will continue in 2024 in spite of the weaker general market situation.
Marimekko’s net sales for the fourth quarter increased by five percent and amounted to EUR 50.6 million (48.4). Net sales were boosted especially by international net sales, which increased by 10 percent. The growth of international net sales was driven particularly by the good development of wholesale sales in the Asia-Pacific region and North America, as well as increased licensing income. We also increased our net sales in Finland by two percent, which represents good performance in this challenging general market situation and highly tactical business environment. I want to take this opportunity to extend my warmest thanks to the entire Marimekko personnel as well as our partners around the world for their excellent work in 2023.
The good development of net sales improved our operating result, with our comparable operating profit rising by 19 percent in October–December to EUR 8.3 million (6.9), representing 16.4 percent of net sales (14.3). Operating profit was also increased by the improved relative sales margin. We systematically continued to make investments in growth in line with our strategy, which meant that our fixed costs increased as planned.
Our full-year net sales for 2023 grew by five percent and totaled EUR 174.1 million (166.5). International sales increased by 10 percent and net sales in Finland by 1 percent. Our comparable operating profit amounted to EUR 32.0 million (30.4) and represented 18.4 percent of net sales (18.2). Cash flow from operating activities also developed favorably, and Marimekko’s financial position remained strong.
In the fourth quarter, we continued to strengthen our position in the international markets, particularly in Asia and Scandinavia. In Malaysia, which is one of Marimekko’s three new markets entered in 2023 and operated by loose-franchise partners, two new Marimekko stores were opened in Kuala Lumpur. In Copenhagen, we opened a flagship store that represents our newest, dynamic store concept. A total of 19 new Marimekko stores or shop-in-shops were opened during the year, with 17 of them in Asia. We also completely redesigned our Stockholm flagship store in 2023. In addition to permanent retail locations, visibility to our brand was brought by 11 pop-up stores during the year, with one in Seoul and another in Hong Kong in the fourth quarter. Limited-edition brand collaboration collections with leading brands in their respective industries, such as with adidas and IKEA in 2023, also play an important role in increasing Marimekko’s international brand awareness.
During the strategy period of 2023–2027, Marimekko is focusing on scaling up its business and growth especially in the international markets. The growth of international net sales, the development of the store network, new digital sales channels and interesting collaborations are concrete proof of the progress of our strategy in 2023. In 2024, we are celebrating the 60th anniversary of our most renowned print design, Unikko, designed by Maija Isola. Unikko will appear in, for example, special collections and various events around the world during the year. This will provide us with excellent opportunities to continue our determined efforts to introduce new audiences to Marimekko, deepen our relationship with the Marimekko community, and scale up our profitable growth despite the market situation.”
Tiina Alahuhta-Kasko