Interim Report 1–9/2022, 2 November 2022
“We further increased our net sales in the third quarter, even compared to our strong performance in the corresponding period last year. Our operating profit margin was at an excellent level.
In the third quarter, our net sales increased by 4 percent to EUR 44.1 million (42.4). This growth was driven particularly by the good development of our international sales, but also that of retail sales in Finland. In total, our omnichannel retail sales increased by 11 percent. Marimekko’s wholesale sales were 3 percent lower than in the comparison period, as wholesale sales in Finland in the comparison period were strengthened by substantially higher non-recurring promotional deliveries than before. Net sales in Finland decreased by 7 percent for the same reason. International sales increased by 28 percent, boosted especially by the strong development of wholesale and retail sales in the Asia-Pacific region. International sales were partly increased by a different weighting of wholesale deliveries compared to the previous year.
During the period under review, we continued to invest in the building blocks for long-term international growth, which was reflected in higher personnel and IT expenses, for example, and our comparable operating profit in July–September decreased to EUR 11.1 million (13.1). Our operating profit margin remained at an excellent level at 25.2 percent of net sales (31.0).
In January–September, our net sales grew by 13 percent and amounted to EUR 118.1 million (104.2). Our comparable operating profit for the first nine months of the year was EUR 23.4 million (23.6), or 19.8 percent of net sales (22.7).
In July, we announced our fourth limited-edition collaboration collection with adidas, a global leader in the sporting goods industry. The collection was launched gradually, starting from July 2022, on the adidas online store and at selected adidas stores and retailers around the world. We are pleased with the international visibility achieved through our brand collaboration with adidas, which supports our growth strategy.
We also continued to develop our network of Marimekko stores in the third quarter. New Marimekko stores in Shanghai, China and in Copenhagen, Denmark were opened. In addition, our new Marimekko Marimade home concept was presented in pop-up stores in Hong Kong and Taipei. Marimekko Marimade products are made with recycled, reused, natural and biodegradable materials, for example.
We believe that determined sustainability efforts strongly support Marimekko’s long-term success. In 2020, we published our new, more ambitious sustainability strategy, and this past September, we made a commitment to the Science Based Targets (SBTi) initiative to set even more determined, science-based targets for reducing emissions throughout our value chain, in line with the UN Paris Climate Agreement. Science-based emission reduction targets are an important tool in our work towards our ambitious long-term vision of our operations leaving no trace on the environment in the future. In August, we took another step toward this ambition by collaborating with Spinnova to launch a capsule collection that contains printed products made using partly Spinnova’s innovative, more sustainably produced wood-based textile fiber. In August, we also opened the Marimekko Pre-loved, an online resale platform for secondhand and vintage items to extend the life of our products and contribute to promoting the circular economy.
In September, Marimekko’s Board of Directors decided on new long-term financial goals, raising our targets for net sales development and comparable operating profit margin. The Board of Directors also set the direction for Marimekko’s next strategy period of 2023–2027. Our excellent financial results over the past few years show that our growth strategy works. The results and overall increased interest in Marimekko around the world also demonstrate the unique opportunities for global expansion that megatrends, such as digitalization as well as changes in consumers’ values, present Marimekko with. Therefore, building on and reinforcing our proven recipe for success, our new strategy period will focus on scaling our business and growth, especially in the international markets. We elaborated on our long-term financial goals and the next strategy period at our company’s first-ever Capital Markets Day on September 14, 2022.
We believe that Marimekko’s mission of bringing joy and empowerment is more meaningful than ever in today’s uncertain world. We are excited to start working on scaling the Marimekko phenomenon, and we invite all of our stakeholders to join us on this inspiring journey.”