Half-year Financial Report 1–6/2023, 17 August 2023
“Our net sales grew and our operating profit improved in the second quarter. Our international sales developed strongly, and we are continuing the determined scaling up of our profitable growth.
Marimekko’s net sales for the second quarter increased by six percent from the record-breaking comparison period and amounted to EUR 40.3 million (38.0). The increase in net sales was driven particularly by growth in international wholesale sales and licensing income. Our international net sales grew by 21 percent in total. Net sales in Finland decreased by three percent despite growth in retail sales, as the weakened general consumer demand affected wholesale sales in Finland. Our wholesale sales developed favorably in the Asia-Pacific region and North America in particular, growing globally by four percent in total. Our omnichannel retail sales, on the other hand, grew by two percent globally.
In April-June, our comparable operating profit improved clearly to EUR 6.8 million (5.7) and was 16.8 percent of net sales (15.0). Operating profit was boosted especially by increased net sales and improved relative sales margin. In line with our strategy, we continued our investments in scaling up our business and growth in the international markets in particular, which increased our fixed costs as previously estimated.
In January-June, our net sales grew by two percent and totaled EUR 75.6 million (74.0). Our comparable operating profit for the first six months of the year was EUR 10.6 million (12.3), equaling 14.0 percent of net sales (16.6).
We continued the development of our omnichannel retail network in April–June. New Marimekko stores were opened in Beijing, Taipei and Taichung, and a new shop-in-shop was opened in Bangkok. In Tampere we opened a new company-owned store. In addition, three pop-up stores were opened in Seoul. In June, we announced that Marimekko will expand its omnichannel store network to Singapore in the fall, with the first store to be opened in September. After the end of the period under review, we also announced Marimekko’s expansion into Malaysia and Vietnam in 2023, with the first stores opening later this year. As other brick-and-mortar Marimekko stores and most online stores in Asia, these new stores will be owned by our loose-franchise partners. Altogether, we plan to open an estimated total of 15–20 new Marimekko stores and shop-in-shops during 2023. The majority of these planned openings will take place in Asia, which is the most important geographical region for our international growth in accordance with our strategy. In the second quarter, net sales in the Asia-Pacific region grew by 28 percent.
In April, Marimekko presented its home collection arriving on the market in the fall at the internationally influential Milan Design Week, announcing the most recent artist collaboration containing ceramics and household textiles with Sabine Finkenauer and a new glassware series designed by Matti Klenell. North America, on the other hand, saw the launch of the summery limited-edition collaboration collection with West Elm, a modern furniture and home décor company, in May. In addition to global brand partnerships that provide us with extensive visibility, targeted local collaborations are an important way to introduce more and more new audiences to Marimekko.
In May, we celebrated Marimekko Day in Finland with public fashion shows, among other events, gathering a vast crowd of friends of Marimekko to the Esplanadi Park in Helsinki. At the same time, the Marimekko Terassi summer terrace was opened in front of the Helsinki flagship store to delight people all summer long. Our tradition of public fashion shows that has been going on for more than thirty years reflects our inclusive approach to design and showcases Marimekko’s core values: a sense of community, equality and inclusion. The same values were visible in our collaboration with Helsinki Pride 2023 and in our store window artworks celebrating Pride Month in Helsinki, Bangkok and New York. We are pleased to bring color and joy to our community across the world in various ways.
Internationally growing brand awareness, our developing omnichannel store network and inspiring communal experiences around the Marimekko brand support us in scaling up our business. Our strong financial position and the good development of our business enable us to carry on long-term growth investments to further strengthen our competitiveness, even in a weaker market environment. We are delighted to continue growing Marimekko together with our loyal customers, new friends of our brand and the continually expanding group of shareholders.”
Tiina Alahuhta-Kasko