Half-year Financial Report 1–6/2021, 19 August 2021
“Our net sales in the second quarter grew substantially both in Finland and internationally. Also, our result improved significantly.
Marimekko’s strong performance continued in the second quarter. Our net sales increased by 40 percent to EUR 32.7 million (23.3). The development of retail and wholesale sales in Finland and wholesale sales in the Asia-Pacific region and Scandinavia was particularly good. Nearly all Marimekko’s own stores were open and footfall increased significantly compared to the previous year, when the situation was highly exceptional and Marimekko’s own stores – and many partner-owned stores – were temporarily closed for part of the quarter due to the coronavirus pandemic. Our omnichannel retail sales increased by 38 percent. The strong growth of wholesale sales continued with an increase of 53 percent in April–June. In the comparison period, the pandemic had a significant impact on net sales especially in Finland, where net sales now grew by 61 percent. Our international sales increased by 20 percent in the review period. The growth of sales, in particular, strengthened our operating profit, which grew significantly. Stronger relative sales margin also supported our result. Our comparable operating profit in April–June improved to EUR 5.5 million (2.7) and was 16.8 percent of net sales (11.4).
In January–June, our net sales grew by 28 percent and amounted to EUR 61.8 million (48.2). Compared to the time pre-pandemic, i.e. the corresponding period in 2019, the rate of growth was 10 percent. Our comparable operating profit in the first half of the year increased to EUR 11.1 million (3.9), which represented 18.0 percent of net sales (8.0).
In May, we announced two limited-edition collaboration collections, which are helping us increase Marimekko’s international brand awareness. In addition to visibility, brand collaborations provide us licensing income, which is part of our business model. Together with adidas, a global leader in the sporting goods industry, we launched Marimekko’s first-ever sports apparel collaboration. The news was enthusiastically received, and the collection has provided us with an excellent opportunity to introduce Marimekko to a broad global audience including also customers entirely new to us. The Spring/Summer capsule collection with the Japanese global apparel retailer Uniqlo, in turn, was one of Uniqlo’s spearhead collaborations in 2021.
In the second quarter, international visibility was also brought about by several events related to our 70th anniversary as well as pop-up stores in Asia, Australia and North America. For example, Nordstrom, a leading fashion retailer in the United States and Canada, put Marimekko’s brand and products prominently on display with its “Pop-In@Nordstrom welcomes Marimekko” campaign in its online store and department stores in nine cities. Pop-up stores and various creative retail concepts represent an important part of our omnichannel customer experience, in the development of which we have invested consistently. We also revamped our online store in May and will further enrich the digital customer experience this fall. Overall, in the second half of 2021, we will continue our investments in strengthening the building blocks of our long-term international growth in order to seize the growth opportunities that the transformation of our industry and changes in consumer behavior present to the timeless, sustainable and unique Marimekko lifestyle.
The development of the pandemic situation in each of our markets is nevertheless evolving and the instability caused by the pandemic has again increased clearly. We will adjust our plans as necessary. New virus variants, the development of vaccination coverage and the way the situation is managed by different countries have an impact on the development of consumer confidence and purchasing behavior, in particular, and the continuing uncertainty may affect consumer demand in our different markets.
Today, the 70-year-old Marimekko brand is more vibrant than ever. After the end of the review period, in August, we presented our first Spring/Summer collection designed under the leadership of our Creative Director Rebekka Bay at Copenhagen Fashion Week and collaborated with the Copenhagen-based design studio and store studio x to open an everevolving experiential pop-up space in the city as an inspiration and meeting place for the local community. We also launched a Marimekko Pre-loved second-hand pilot in our online store to help extend the lifespan of Marimekko products. We believe that new and brave perspectives, concepts and touchpoints will keep the Marimekko brand relevant and meaningful for our customers also in the future.”