Half-year Financial Report 1 – 6/2024, 15 August 2024:
“Marimekko’s net sales and operating profit grew during the first six months of the year. Impressive events and brand collaborations around the world increase our brand awareness and support our international growth strategy.
Marimekko’s net sales in the second quarter of 2024 increased by eight percent and amounted to EUR 43.7 million (40.3). Net sales were boosted especially by the growth of wholesale sales in Finland and Scandinavia, as well as increased retail sales in Finland. Marimekko’s retail sales grew in all market areas. In the important domestic market of Finland, we achieved a growth of five percent in retail sales despite the continued challenging market situation. Wholesale sales in Finland were strengthened by non-recurring promotional deliveries which, unlike in the comparison year, mainly took place in the first half of the year. Total net sales in Finland grew by 11 percent, while international net sales increased by six percent.
Our comparable operating profit for April–June amounted to EUR 6.4 million (6.8), representing 14.6 percent of net sales (16.8). Higher fixed costs and a lower relative sales margin decreased operating profit in the second quarter of the year. Our fixed costs were increased by, for example, planned investments in brand marketing to celebrate the 60th anniversary of the Unikko print. Cash flow from operating activities increased significantly and our financial position remained strong.
In January–June, our net sales increased by eight percent and totaled EUR 81.3 million (75.6). Our comparable operating profit for the first six months of the year improved by nine percent and amounted to EUR 11.6 million (10.6), representing 14.2 percent of net sales (14.0).
In May, our second limited-edition brand collaboration collection of the year with the global Japanese apparel retailer UNIQLO arrived in stores. Around the world widely available collaboration collections play a significant role in introducing new customers to Marimekko. In the second quarter, we also launched local brand collaborations with the Blue Bottle Coffee specialty coffee brand in Japan and the Heytea chain, focusing on new tea beverages, in China, and announced a silver jewelry collection created in partnership with the Finnish company Kalevala Jewelry. The collection will celebrate the Unikko print design and become available in the fall. These types of local brand collaborations deepen our relationship with the Marimekko community in different countries and help us build our brand awareness in a more targeted manner in the Asian markets, for example.
The store network in Asia also developed further during the second quarter. During the first months of the year, Marimekko changed its loose-franchise partner responsible for the Taiwanese market to Imaginex, a leading partner in the region. As a result of the change in partner, the store network in Taiwan will be fully revamped in 2024. In the second quarter, three Marimekko stores were opened in Taipei and one in Tainan. In Singapore, a partner-operated Marimekko webstore and another online platform were opened. In addition, the store network in Japan grew by one Marimekko store and six pop-up stores delighted customers across the country.
The 60th anniversary of the Unikko print design showed strongly in our main markets in the second quarter. In April, the iconic print was celebrated at Milan Design Week at the Bar Unikko pop-up café, which garnered one of the highest earned visibilities of the design week’s events. In May, the traditional Marimekko Day fashion shows held in Esplanade Park in Helsinki drew large crowds of friends of our brand to enjoy summer fashion in the spring sunshine. To mark the special anniversary, this year the popular event also travelled to Shanghai as well as to Tokyo, where we invited our community to an open fashion show for the first time. Our public fashion shows reflect our inclusive approach to design and showcase values important to Marimekko: a sense of community, equality and inclusion. The anniversary of Unikko, our most internationally renowned print design, provides us with an exceptional opportunity to expand our customer base through brand marketing and bring color and joy to our community around the world in various surprising ways.
I want to take this opportunity to extend my warmest thanks to all of Marimekko’s personnel and our partners for their excellent work in the first half of the year. Our continued profitable growth in spite of the prolonged weaker general market situation speaks to the desirability of our brand and the strong competitiveness of our company. We are in a good position to continue our determined efforts to scale up the global Marimekko phenomenon.”
Tiina Alahuhta-Kasko