Interim Report 1-3/2021, 20 May 2021
“Successful wholesale sales in particular contributed to an increase in our net sales in the first quarter. International sales grew markedly. Thanks to higher net sales, a stronger relative sales margin and reduced fixed costs, our results improved significantly.
“Marimekko did well in the first quarter. Our attractive collections and the growing interest in home decoration, the lessons and new operating practices we learned during the exceptional circumstances and our long-term work to develop our brand and omnichannel business helped us achieve good growth.
“Our net sales in the January-March period rose by 17 percent to EUR 29.1 million (24.9) due especially to a favorable trend in wholesale sales in the Asia-Pacific region, Finland and Scandinavia and increased licensing income in EMEA. Growth in our wholesale sales in the Asia-Pacific was partly attributable to the transfer of some of the wholesale deliveries for the final quarter of 2020 to the first quarter of the current year. In Finland, nonrecurring promotional deliveries in particular contributed to an increase in wholesale sales. Our licensing income in EMEA rose as a result of an agreement signed in spring 2021.
“Marimekko stores around the world were open in the first quarter with a few exceptions but, in many markets, the increasingly difficult pandemic situation and tighter restrictions continued to reduce footfall in stores. Good growth in online sales, however, supported our omnichannel retail. All in all, net sales in Finland grew by 7 percent, while international sales increased by 29 percent.
“Our comparable operating profit in the January-March period rose to EUR 5.6 million (1.2), representing 19.3 percent of net sales (4.9). Results improved significantly as our sales increased, the relative sales margin strengthened, and our fixed costs decreased. The decrease in fixed costs was partly due to the timing of expenses and temporary cost savings.
“At Copenhagen Fashion Week in February, our digital presentation highlighted our timeless design philosophy and original approach to printmaking in celebration of our 70th anniversary. Copenhagen Fashion Week’s focus on sustainability makes it one of the most interesting global events in the industry and a natural opportunity for Marimekko to build international awareness. The Zalando Sustainability Award competition was organized as part of the event, with Marimekko being awarded second place in recognition of its long-term work to promote sustainability.
“In the early months of the year, we also continued to increase our visibility in the Asian markets, which are especially important for us in the next phase of our international growth. Pop-up stores showcasing our anniversary and our Co-Created collections in major Asian cities introduced new audiences to our brand. In addition, the world’s first Marimekko Kioski store was opened in Japan. Marimekko Kioski streetwear is especially popular among younger consumers. We believe that the significance of these kinds of creative retail concepts as part of a seamless omnichannel customer experience will grow in the post-pandemic new reality. Our revamped online store will also open during the summer.
“This year, we are investing in strengthening the building blocks of our long-term international growth: in addition to our digital business and a seamless omnichannel customer experience, we are continuing to develop our sustainability and brand awareness. Changes in consumer behavior as a result of the growing significance of digitization and sustainability present unique growth opportunities for Marimekko, and we are willing to boldly seize those opportunities. We are of course closely monitoring the development of the pandemic situation in each of our market areas and will adjust our plans as necessary.
“Our 70th anniversary provides us with excellent opportunities to speak to our existing loyal customers as well as new fans of Marimekko. Our goal for this milestone year is to, together with our customers, make the Marimekko phenomenon even more meaningful while continuing to bring joy to people’s everyday lives around the world.”