Interim Report 1-3/2024, 15 May 2024:
“Marimekko had a good start to the year 2024, and an impressive one in terms of our brand communications. This year, we are celebrating the 60th anniversary of the Unikko print, which supports our momentum to continue our determined work to scale up our profitable growth in spite of the weaker general market situation.
Marimekko’s net sales for the first quarter of 2024 increased by seven percent and amounted to EUR 37.7 million (35.3). Net sales were boosted especially by the growth of wholesale sales in Finland as the amount of non-recurring promotional deliveries falling in the first quarter was significantly higher than estimated. The increase in net sales was also driven by the growth of international net sales. Our international net sales increased by six percent, due to the favorable development of wholesale sales in the Asia-Pacific region and North America, as well as the significant growth of licensing income. The general market situation in Finland remained challenging. Nevertheless, the strong appeal of our brand was demonstrated by the continued positive development of our omnichannel retail sales in Finland, with growth of two percent even in a highly tactical business environment. Total net sales in Finland increased by eight percent.
Net sales growth and the improved relative sales margin increased our operating result. In January–March, our comparable operating profit grew by 36 percent to EUR 5.2 million (3.8), representing 13.8 percent of net sales (10.9). Our fixed costs increased as planned, driven particularly by investments in growth. Marimekko’s overall financial position remained strong.
In 2024, we are celebrating the 60th anniversary of our most renowned print design, Unikko, designed by Maija Isola. To celebrate the anniversary, our collections feature a number of special products and, since the turn of the year, Unikko has delighted friends of Marimekko around the world in many ways, including an installation at the Lux Helsinki light festival, a painted iconic streetcar livening up the Hong Kong streetscape, and fashion shows at Copenhagen Fashion Week and in Bangkok. In Japan, Marimekko had the honor of being the first international brand to participate in Rakuten Fashion Week Tokyo, where we presented our upcoming fall collection in mid-March. The continued celebration of the Unikko print throughout the year will provide us with an excellent opportunity to continue our consistent efforts to introduce new audiences to Marimekko and deepen our relationship with the Marimekko community in Finland and around the world.
Various brand collaborations also play an important role in increasing our international brand awareness, which is a prerequisite for our growth strategy. In the first quarter, we launched a new limited-edition brand collaboration collection with the global apparel retailer UNIQLO and a collaboration with the global technology company Samsung. After the review period, we also announced a second collaboration collection with UNIQLO and an upcoming cooperation with the Finnish brand Kalevala Jewelry that will celebrate the Unikko design.
While ensuring the global coherence of the Marimekko brand, we want to have a strong presence in the daily lives of our local customers in each market. We have defined Asia as the most important geographical region for our international growth in the coming years. This was reflected in our collections during the spring in special products and events celebrating, for instance, Lunar New Year and the sakura cherry blossom season in Japan. Omnichannel Marimekko retail, operated by us or our loose franchise partners, represents the core of our distribution strategy. In the first quarter, we complemented our omnichannel retail network in Asia by launching a new digital channel in China and Marimekko online stores in Vietnam and Malaysia were opened. In Japan, two Marimekko stores were opened in Koshigaya and Sendai. In addition, two pop-up stores delighted our customers in Australia. Our total net sales in the Asia-Pacific region increased by 22 percent in the first quarter.
Internationally growing brand awareness, our developing omnichannel store network, and impactful communal experiences around the Marimekko brand support us in scaling up our business. We are excited to continue building the global Marimekko phenomenon together with the constantly expanding Marimekko community, our shareholders, our personnel, and our partners.”
Tiina Alahuhta-Kasko