From the President & CEO

Half-year Financial Report 1–6/2022, 17 August 2022

“Net sales grew in the second quarter both in Finland and internationally. Our result also improved clearly.

The positive development of Marimekko’s business continued in the second quarter. Our net sales increased by 16 percent to EUR 38.0 million (32.7), driven especially by the good development of retail sales in Finland but also internationally. In total, our omnichannel retail sales increased by 37 percent. In April–June, net sales increased by 25 percent in Finland and international sales grew by 5 percent. However, the rate of growth of international sales was negatively impacted by a different kind of weighting of wholesale deliveries compared to the previous year. For the full year 2022, we expect our international net sales to grow clearly.

In April–June, our result was boosted particularly by sales growth, and our comparable operating profit improved to EUR 5.7 million (4.9), representing 15.0 percent of net sales (14.9). During the period under review, we continued to invest in the building blocks for long-term international growth, which was reflected in higher marketing and personnel expenses, for example. In addition to our investments in growth, our costs in 2022 are being increased by the general rise in material and logistics costs as well as various global supply chain disruptions. Uncertainties in the operating environment and global economy, general cost inflation and rising interest rates may have negative impact on consumer purchasing power and behavior in some of our markets during the rest of the year. We are taking an active approach at Marimekko to reduce the negative impacts of supply chain disruptions and increased costs in various ways. We believe that the globally increasing interest in our brand, collections that appeal to an increasingly broad customer base and our continuously improving omnichannel customer experience, including various inspiring events online and at our stores, put us in an excellent position to increase our sales even in a more challenging market situation.

In January–June, our net sales increased by 20 percent and amounted to EUR 74.0 million (61.8). Our comparable operating profit for the first half of the year improved to EUR 12.3 million (10.5), representing 16.6 percent of net sales (17.0).

In January–June, our net sales increased by 20 percent and amounted to EUR 74.0 million (61.8). Our comparable operating profit for the first half of the year improved to EUR 12.3 million (10.5), representing 16.6 percent of net sales (17.0).

Our network of Marimekko stores was strengthened in the second quarter: two new Marimekko stores were opened in China Mainland in May, and one in Hong Kong in June. We believe that in an increasingly digital world, physical stores continue to play an important role for consumers as inspirational and experiential meeting places centering around personalized service. In Thailand, a Marimekko pop-up café was opened in June in conjunction with one of the stores in Bangkok. Creative retail concepts are an important part of the omnichannel customer experience: they provide an even more comprehensive Marimekko lifestyle experience, introduce our brand to new customers and increase customer loyalty.

In May, we organized our traditional fashion show in Esplanadi park in Helsinki, open to the public, after a two-year break caused by the coronavirus pandemic. We also extended the show to connected events around the city for the first time. The tradition, which began 30 years ago, demonstrates several of Marimekko’s core values: a sense of community, equality and inclusion. Our values are also reflected in Marimekko being one of the main partners of Helsinki Pride 2022 and participating in related events in June. We are pleased to be able to promote values important to us and bring color and joy to our community in various ways.

After the review period, in August, we announced Marimekko Pre-loved, a marketplace for buying and selling second-hand and vintage products. The new online second-hand marketplace supports one of the three main principles of our sustainability strategy – timeless design brings joy for generations to come – and represents an important step in our ambitious efforts to continuously extend the lifespan of our products and contribute to promoting the circular economy.

The positive development of our business from one quarter to the next speaks to the effectiveness of our growth strategy. Our strong development is underpinned by our persistent long-term efforts, for which I want to extend my warmest thanks to everyone at Marimekko as well as our partners. We will continue to determinedly accelerate our long-term international growth while simultaneously working on the company’s direction for the next strategy period, which will be discussed in more detail at Marimekko’s Capital Markets Day on 14 September 2022. At the event, we will also provide more information on our review of Marimekko’s long-term financial targets.”

 Tiina Alahuhta-Kasko