admin Finnish design label Marimekko has published its financials for the second quarter of the year, during which time its net sales rose 6 percent over a “record-high comparison period” totalling 403 million euros.
The company cited growth in international wholesale as the reason behind the increase, with international sales rising 21 percent. This contrasted its experience in its home market, however, where net sales declined 3 percent due to weakened consumer demand.
Marimekko’s operating profit came in at 6.6 million euros, up 16 percent, while its EBITDA also rose from 8.1 million euros to 8.8 million euros.
For the half year period spanning January to June, the company saw sales rise 2 percent to 75.6 million euros, yet there was still a drop in the Finnish market of 3 percent compared to its 9 percent increase internationally.
Its operating profit for the period was 10.4 million euros, equalling 14 percent of net sales, marginally decreasing from the year prior to higher fixed costs and lower relative sales margin.
In terms of outlook, Marimekko was hesitant due to the current risk aligned with the global economy and general cost inflation.
The company said such occurrences could impact the business in 2023, especially in Finland, which traditionally represents half of its net sales. Despite this, Marimekko is still expecting sales in the region to grow on the previous year.
Meanwhile, the Asia-Pacific region, the brand’s second-largest market, will play a large role in growth, the company stated, with a net sales increase forecasted due to new store openings.
It concluded: “Marimekko develops its business with a long-term view and aims to scale its growth especially in international markets during the strategy period of 2023–2027. In 2023, fixed costs are expected to be up on the previous year.”
