From the President & CEO

Interim Report 1–3/2022, 13 May 2022

“Marimekko’s good development continued in the first quarter of 2022. Our net sales grew and our operating profit improved.

The strong development of our business is based on the constantly growing desirability of our brand – which we develop with a long-term approach – as well as collections that appeal to our customers and the increasingly agile operating methods we have adopted over the past few years, among other factors. Our strengthened competitiveness and profitable growth are the result of excellent work done by everyone at Marimekko.

In January–March, our net sales increased by 24 percent to EUR 36.0 million (29.1). Growth was driven both by higher wholesale and retail sales in Finland as well as the positive development of international net sales, with sales growing in every market area. Our omnichannel retail sales grew by 22 percent, while wholesale sales increased by 23 percent.

Our comparable operating profit, which rose to EUR 6.6 million (5.6) in January–March, was boosted in particular by increased sales. To reinforce our long-term international growth, during the review period we invested in areas such as increasing Marimekko’s brand awareness, digital business and IT systems, as well as recruitments that support growth. As planned, this raised our fixed costs in the first quarter. In addition to our investments in growth, our costs in 2022 are also being increased by the general rise in material and logistics costs as well as the global supply chain disruptions that are still caused by the pandemic and made worse by the war in Ukraine, which touches all of us on a human level. Russia’s attack on Ukraine has deeply shocked all of us at Marimekko, and our thoughts are with the people of Ukraine. We try to help them with our small contribution.

In February, we presented our winter 2022 collection at Copenhagen Fashion Week. The collection was designed with a focus on combinability and layering. Improved combinability between seasons and the new block fits and archetype silhouettes that draw inspiration from our archives further strengthen the timelessness and sustainability of Marimekko’s design. We also took our first steps toward a value chain that is in line with the principles of the circular economy when, at the beginning of the year, we started a cooperation concerning the recycling of end-of-life textiles. Rester Oy’s recycling facility in Paimio, Finland, makes new textile fibers from the end-of-life-textiles of Marimekko’s own production, i.e. from the textile printing factory and sewing shop in Helsinki.

In March, we announced our third limited-edition collection with adidas, a global leader in the sporting goods and apparel industry. The collection, which launched in April, further increases Marimekko’s brand awareness internationally and thereby supports our international growth strategy. Furthermore, we joined forces in the Chinese market with a local lifestyle brand, the Beast, to launch a limited-edition collection of home products as well as Marimekko’s first perfume. In addition to global brand partnerships that provide us with extensive visibility, these types of targeted local collaborations are an important way to introduce more and more new audiences to Marimekko.

In 2022, we are continuing our efforts to accelerate our long-term international growth. As our business model and strategy of profitable growth do not tie up significant amounts of capital, and because the company’s financial position is strong, the Annual General Meeting held after the review period decided to distribute an extraordinary dividend in addition to the regular dividend for the financial year 2021. The AGM also resolved to carry out a share issue without payment, directed to the company’s shareholders. The number of shares increased fivefold as a result of the share issue. The purpose of the share split is to enhance the liquidity of the company’s shares.

After the review period, we have already announced upcoming brand collaborations with IKEA and the modern luxury brand Mansur Gabriel, for example. Marimekko is moving ahead systematically with the execution of the company’s strategy of profitable growth. We are pleased that our loyal long-term customers, the many new friends of Marimekko and our growing group of shareholders have decided to join us on this inspiring journey.”

 Tiina Alahuhta-Kasko