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2024-11-06 INTERIM REPORT OF MARIMEKKO, 1 Jan – 30 Sept 2024: Marimekko’s net sales in Q3 nearly at the record level of the comparison period despite the timing of non-recurring promotional deliveries, operating profit margin remains excellent

Marimekko Corporation, Interim Report, 6 November 2024 at 8.00 a.m.

INTERIM REPORT OF MARIMEKKO, 1 Jan–30 Sept 2024: Marimekko’s net sales in Q3 nearly at the record level of the comparison period despite the timing of non-recurring promotional deliveries, operating profit margin remains excellent

This release is a summary of Marimekko’s interim report for the January-September period of 2024. The complete report is attached to this release as a pdf file and it is also available on the company’s website at company.marimekko.com under Releases & publications.

The third quarter in brief

Marimekko’s net sales decreased by 1 percent and totaled EUR 47.2 million (47.9). Net sales were weakened, in particular, by the lower wholesale sales in Finland. On the other hand, retail sales developed well in all market areas, especially in Finland, and grew in total by 12 percent.
Net sales in Finland decreased by 9 percent when non-recurring promotional deliveries, as expected, were lower than in the strong comparison period. Retail sales in Finland increased by 8 percent. International sales grew by 9 percent with both retail and wholesale sales increasing.
Operating profit was EUR 11.1 million (12.9). Comparable operating profit was behind the strong comparison period and totaled EUR 11.1 million (13.1) equaling to 23.5 percent of net sales (27.4).
Higher fixed costs, in particular, decreased operating profit in the third quarter of the year.

January-September in brief

Company’s net sales grew by 4 percent and amounted to EUR 128.6 million (123.5). Net sales were especially boosted by the growth of retail sales in Finland and an increase in wholesale sales in the Asia-Pacific region. On the other hand, net sales were negatively impacted by a decrease in wholesale sales in the EMEA region.
Net sales in Finland increased by 2 percent due to favorable development of retail sales. International sales grew by 7 percent with retail sales increasing in all and wholesale sales in nearly all market areas.
Operating profit totaled EUR 22.3 million (23.3) and comparable operating profit EUR 22.7 million (23.7) equaling to 17.6 percent of net sales (19.2).
Operating profit was weakened especially by higher fixed costs. On the other hand, an increase in net sales boosted operating profit.

Financial guidance for 2024

The Marimekko Group's net sales for 2024 are expected to grow from the previous year (2023: EUR 174.1 million). Comparable operating profit margin is estimated to be approximately some 16–19 percent (2023: 18.4 percent). Development of consumer confidence and purchasing power, particularly in Finland, global supply chain disruptions and the general inflation development cause volatility to the outlook for 2024.

Uncertainties related to the development of net sales and result are described in more detail in the Major risks and factors of uncertainty section of the Interim Report.

Key Figures

(EUR million)	7–9/ 2024	7–9/ 2023	Change, %	1–9/ 2024	1–9/ 2023	Change, %	1–12/ 2023
Net sales	47.2	47.9	-1	128.6	123.5	4	174.1
International sales	21.5	19.7	9	58.9	55.1	7	75.2
% of net sales	46	41		46	45		43
EBITDA	13.4	15.2	-12	29.3	30.2	-3	40.6
Comparable EBITDA	13.5	15.4	-13	29.7	30.6	-3	41.2
Operating profit	11.1	12.9	-14	22.3	23.3	-4	31.4
Operating profit margin, %	23.5	27.0		17.3	18.9		18.0
Comparable operating profit	11.1	13.1	-15	22.7	23.7	-4	32.0
Comparable operating profit margin, %	23.5	27.4		17.6	19.2		18.4
Result for the period	8.4	10.3	-19	17.1	17.5	-3	23.6
Earnings per share, EUR	0.21	0.25	-19	0.42	0.43	-3	0.58
Comparable earnings per share, EUR	0.21	0.26	-20	0.43	0.44	-3	0.59
Cash flow from operating activities	4.4	5.4	-20	14.7	8.4	75	29.4
Gross investments	0.6	0.5	17	1.8	1.2	49	2.0
Return on capital employed (ROCE), %				32.5	32.0		33.0
Equity ratio, %				58.3	53.2		54.1
Gearing, %				0.7	22.7		-6.3
Net debt / EBITDA (rolling 12 months)				0.01	0.34		-0.10
Personnel at the end of the period				459	451	2	468
outside Finland				75	76	-1	83
Brand sales 1	119.1	92.4	29	309.5	280.8	10	376.7
outside Finland	85.2	54.7	56	218.8	191.5	14	249.0
proportion of international sales, %	72	59		71	68		66
Number of stores				166	166		167

The change percentages in the table were calculated on exact figures before the amounts were rounded to millions of euros. The figure for comparable earnings per share takes account of similar items as comparable operating profit; tax effect included. Reconciliation of alternative key figures to IFRS and management’s discretion regarding items affecting comparability are presented in the table section of the Interim Report.

1 Brand sales are given as an alternative non-IFRS key figure, representing the reach of the Marimekko brand through different distribution channels. An unofficial estimate of sales of Marimekko products at consumer prices, brand sales are calculated by adding together the company’s own retail net sales and the estimated retail value of Marimekko products sold by other retailers. The estimated retail value is based on the company’s realized wholesale sales and licensing income. Brand sales do not include VAT, and the key figure is not audited. Some licensees provide exact retail figures, in which case these figures are used in reporting brand sales. For other licensing agreements, Marimekko’s own retail coefficients for different markets are used. Licensing income is reported as brand sales when licensed products are sold.

Tiina Alahuhta-Kasko, President and CEO, in conjunction with the report:

“Marimekko continued to progress well in its SCALE growth strategy in the third quarter in spite of the challenging market situation. Our own channels in Finland and other market areas developed well, and our international net sales grew. Our operating profit margin was at an excellent level.

Marimekko’s net sales for the third quarter were almost on a par with the record high achieved in the comparison period, amounting to EUR 47.2 million (47.9). As previously estimated, non-recurring promotional deliveries in the wholesale sales in Finland were lower than in the strong comparison period, which reduced net sales. On the other hand, net sales were increased by the positive development of retail sales in all market areas, especially Finland. Retail sales in the important domestic market grew by eight percent despite the continued challenging market situation. This speaks not only to the appeal of the Marimekko brand but also the excellent work done by everyone at Marimekko in constantly changing circumstances, which enables our commercial agility. Total net sales in Finland decreased by nine percent. International sales grew by nine percent in the third quarter, with wholesale sales growing in the Asia-Pacific region and Scandinavia, and retail sales developing well in all market areas.

Our comparable operating profit for July–September was EUR 11.1 million (13.1), and the comparable operating profit margin remained at an excellent level at 23.5 percent of net sales (27.4). Operating profit was affected particularly by higher fixed costs, which were due to planned investments in the brand marketing of the 60th anniversary of the Unikko print and increased personnel expenses, among other factors. Our financial position remained strong.

In January–September, our net sales grew by four percent and amounted to EUR 128.6 million (123.5). Our comparable operating profit came to EUR 22.7 million (23.7), representing 17.6 percent of net sales (19.2).

In our growth strategy, we have defined a sharpened creative vision to speak to a wider global audience as one of our success factors. One visible example of our long-term efforts to develop our brand and collections is our first denim collection Marimekko Maridenim, which arrived in stores in August. Marimekko Maridenim pieces complement our existing lifestyle assortment and they have been designed following the Ellen MacArthur Foundation’s Jeans Redesign Guidelines, which are based on the principles of a circular economy. Influencers and members of the Marimekko customer community came together around the world to see our first denim products at our impressive launch events organized for the new product category in locations such as Shanghai, Tokyo, New York and Helsinki. The Marimekko Maridenim collection has been enthusiastically received by consumers.

The 60th anniversary of the Unikko print, which has brought a special splash of color to the entire year, was again prominently featured in our marketing in the third quarter. At a fashion show held in Taipei in August, we celebrated the Unikko print, Marimekko Maridenim and the first store in Asia featuring our newest store concept. In September, the iconic print was in limelight during Helsinki Design Week at the Bar Unikko pop-up restaurant. The concept was a repeat of our very popular pop-up café at Milan Design Week earlier this year. The stunning Unikko design also plays the main role in the silver jewelry collection created in collaboration with Kalevala Jewelry, which arrived in stores in October. At the same time, our eyes are also on the future and at our show at Copenhagen Fashion Week in August, we presented our first collections for 2025 to a large audience of international media, influencers, buyers and friends of Marimekko.

In the development of our omnichannel retail network, the most significant event in the third quarter concerned our new online store platform. Following a successful pilot carried out in the United States in the spring, the new platform was expanded to all of our other markets in September. The new platform enables our online store to simultaneously provide an even more personalized customer experience as well as plenty of opportunities for automation, among others. Our network of physical stores also developed, with a new Marimekko store opened in Shanghai and five pop-up stores around Asia, for example.

In September, we organized our second Capital Markets Day, at which Marimekko's top management elaborated on the progress of the SCALE strategy during the first 18 months of the strategy period. At the event, the company also discussed the previously described growth and profitability drivers to achieve its long-term financial targets. Marimekko’s strong financial position and the positive development of the business provide us with excellent opportunities to continue our work to scale up our profitable growth and expand the Marimekko phenomenon and community around the world.”

Market outlook and growth targets for 2024

The uncertainties related to the development of the global economy, such as geopolitical tensions and their impact on the general economic situation, and general cost inflation influence consumer confidence, purchasing power and behavior and, as a result, can have an impact on Marimekko’s business in 2024, especially in the important domestic market of Finland. Different exceptional situations may cause even significant disruptions in production and logistics chains, and may thus have a negative impact on the company’s sales, profitability and cash flow.

Finland, Marimekko’s important domestic market, traditionally represents about half of the company’s net sales. Sales in Finland in 2024 are impacted by the weak general economy and low consumer confidence as well as the development of purchasing power and behavior. The tactical operating environment also has an impact on the business. The timing between quarters of the non-recurring promotional deliveries in Finnish wholesale sales and their size typically vary on an annual basis. In 2024, the non-recurring promotional deliveries in wholesale sales are expected to be significantly lower than in the comparable year and weighted clearly in the first half of the year. Despite the weak market situation, net sales in Finland are expected to be approximately at the level of the previous year.

International sales are estimated to grow in 2024. In the strategy period 2023–2027, Marimekko will focus on Asia as the most important geographical area for international growth. In 2024, net sales in the Asia-Pacific region, Marimekko’s second-largest market, are expected to increase. Japan is clearly the most significant country in this region to Marimekko and already has a very comprehensive network of Marimekko stores. All brick-and-mortar Marimekko stores and most online stores in Asia are partner-owned. In 2024, the aim is to open approximately 10–15 new Marimekko stores and shop-in-shops, and most of the planned openings will be in Asia.

Licensing income in 2024 is forecasted to be approximately at the previous year’s record level.

Because of the seasonal nature of Marimekko’s business, the major portion of the company’s euro-denominated net sales and operating result are traditionally generated during the second half of the year.

Marimekko develops its business with a long-term view and aims to scale its profitable growth in the upcoming years. In 2024, fixed costs are expected to be up on the previous year. The general cost inflation continues to also affect Marimekko in 2024. Personnel expenses are impacted, for example, by general pay increases in different markets. In 2024, Marimekko is celebrating the 60th anniversary of the Unikko pattern, which provides the company with a unique opportunity to grow international awareness through, for example, various events around the world. Marketing expenses are expected to increase (2023: EUR 9.5 million).

Early commitments to product orders from supplier partners, typical of the industry but partly further emphasized by the exceptional situations, undermine the company’s ability to optimize product orders and respond to rapid changes in demand and consumer behavior, which also increases risks related to sales, inventory management and relative profitability. The domestic non-recurring wholesale promotional deliveries also raise inventory risks. In addition, risk of delays in production and logistic chains is higher than usual and if realized, these kinds of delays can have an impact on the company’s sales and profitability. Marimekko works actively to ensure functioning production and logistics chains, to avoid delays, to mitigate the negative impacts of generally increased costs, and to enhance inventory management.

Marimekko is closely monitoring the general economic situation, the development of consumer confidence and purchasing power and the impacts of different exceptional situations, and the company will adjust its operations and plans according to the circumstances.

Media and investor conference

A media and investor conference will be held in English on 6 November 2024 at 2.00 p.m. EET. A live webcast of the conference can be followed at https://marimekko.videosync.fi/q3-2024, and a recording of the webcast will be available at the same address later. Questions can be asked during the live webcast in writing.

Further information:
Tiina Alahuhta-Kasko, President and CEO, tel. +358 9 758 71
Elina Anckar, CFO, tel. +358 9 758 7261

MARIMEKKO CORPORATION

Corporate Communications
Anna Tuominen
Tel. +358 40 5846944
anna.tuominen@marimekko.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 38 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com.

Attachment

Marimekko Corporation Interim Report 1-9_2024

2024-11-06 Change in Marimekko’s financial reporting dates in 2025

Marimekko Corporation, Stock Exchange Release, 6 November 2024 at 7.55 a.m.

Change in Marimekko’s financial reporting dates in 2025

Marimekko Corporation changes the publication date of its Half-year Financial Report for January–June 2025. The new publishing date is Thursday 14 August 2025.

In 2025, Marimekko Corporation will publish financial information as follows:

Financial Statement Bulletin 2024 on Wednesday 19 February 2025 at 8.00 a.m.

Interim Report 1 January–31 March 2025 on Wednesday 14 May 2025 at 8.00 a.m.

Half-year Financial Report 1 January–30 June 2025 on Thursday 14 August 2025 at 8.00 a.m.

Interim Report 1 January–30 September 2025 on Friday 31 October 2025 at 8.00 a.m.

Marimekko observes a silent period of 30 days prior to publishing of financial information.

The company’s Financial Statements and the Report of the Board of Directors 2024 will be published in week 12, at the latest.

Marimekko’s Annual General Meeting is planned to be held on Tuesday 15 April 2025 at 2 p.m. The notice to convene the Annual General Meeting will be given later by the Board of Directors. A shareholder may request that a matter falling within the competence of the General Meeting shall be placed on the agenda of the Annual General Meeting. To this effect, a written request should be sent to the Board of Directors on Wednesday 22 January 2025, at the latest. An announcement on the resolutions of the Annual General Meeting will be released after the meeting.

MARIMEKKO CORPORATION
Corporate Communications 

Anna Tuominen
Tel. +358 40 5846944
anna.tuominen@marimekko.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 38 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com

2024-10-31 Release of Marimekko's Interim Report, 1 January–30 September 2024

Marimekko Corporation, Press release 31 October 2024 at 11.00 a.m.

Release of Marimekko's Interim Report, 1 January–30 September 2024

Marimekko Corporation’s Interim Report 1 January–30 September 2024 will be published on Wednesday 6 November 2024 at 8.00 a.m. EET. The report and related materials will be available on the company’s website at https://company.marimekko.com/investors after the publication.

A media and investor conference will be held in English on 6 November 2024 at 2.00 p.m. EET. A live webcast of the conference can be followed at https://marimekko.videosync.fi/q3-2024, and a recording of the webcast will be available at the same address later. Questions can be asked during the live webcast in writing.

Additional information:
Anna Tuominen, Marimekko Communications
Tel. +358 40 584 6944
anna.tuominen@marimekko.com

DISTRIBUTION:
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 35 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com

2024-10-22 Marimekko and UNIQLO celebrate autumnal moments with limited-edition Fall/Winter 2024 collection

Marimekko and UNIQLO celebrate autumnal moments with limited-edition Fall/Winter 2024 collection

Marimekko Corporation, Press release, 22 October 2024, 9:00AM

Finnish design house Marimekko and global apparel retailer UNIQLO announce the launch of the UNIQLO x Marimekko Fall/Winter 2024 limited-edition collection. The collection draws inspiration from the rich nature in the Nordics with functional layering pieces for women and children, inviting us to enjoy moments in nature with family, friends and loved ones. The collaboration collection will be available in UNIQLO stores and online stores in markets where UNIQLO operates from 24 October 2024 onward. The launch date differs from country to country.

“We are excited to launch the Fall/Winter 2024 limited-edition collection, inspired by the Nordic tradition of fall foraging and moments in the forest spent with loved ones. This over-arching theme of joy and optimism is at the heart of Marimekko’s art of printmaking, and we are pleased to able the share this with a wide, global audience in collaboration with UNIQLO”, says Rebekka Bay, Creative Director at Marimekko.

“Marimekko prints are often inspired by nature, and for this collection we chose a selection of prints that would be perfect for crisp autumnal moments from sunrise to sunset. The latest UNIQLO x Marimekko collection includes items for both women and girls. We’re delighted that we have been able to collaborate on three seasons this year and hope that everyone enjoys the lineup over the beautiful seasons to come”, says Yukihiro Katsuta, Senior Executive Officer and Head of R&D for UNIQLO at Fast Retailing Group.

The lineup of women's and kids’ items introduce functional layering pieces in coordinated colors and matching patterns. This season’s collection features four distinctive Marimekko prints from leading designers Maija Isola and Annika Rimala: Seireeni, Kimalainen and Koppelo from Isola, and Suomu by Rimala. The collection includes warm and soft fleece cardigans, comfy lambswool knits as well as vivid accessories along with UNIQLO’s HEATTECH garments.

Limited-edition brand collaborations increase Marimekko’s international brand awareness and this way support Marimekko’s international growth strategy. In addition, brand collaboration collections typically generate licensing income to Marimekko. Licensing income from the collaboration with UNIQLO has been recognized as revenue for Marimekko in the Asia-Pacific region both in 2023 and 2024.

Photos: https://mediabank.marimekko.fi/l/sFB7ndp9pXBQ

Further information:
Leena Salomaa, Marimekko Communications
Tel. +358 9 758 7233
leena.salomaa@marimekko.com

DISTRIBUTION:
Key media

About Marimekko

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 35 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com

About UNIQLO and Fast Retailing

UNIQLO is a brand of Fast Retailing Co., Ltd., a leading Japanese retail holding company with global headquarters in Tokyo, Japan. UNIQLO is the largest of eight brands in the Fast Retailing Group, the others being GU, Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand and Helmut Lang. With global sales of approximately 3.1 trillion yen for the 2024 fiscal year ending August 31, 2024 (US $21.39 billion, calculated in yen using the end of August 2024 rate of $1 = 144.9 yen), Fast Retailing is dedicated to creating great clothing with new and unique value to enrich the lives of people everywhere. Its corporate statement is Changing Clothes, Changing Conventional Wisdom. Change the World.

Today UNIQLO has a total of more than 2,500 UNIQLO stores across the world, including Japan, Asia, Europe and North America. For more information, visit www.uniqlo.com.

2024-09-11 Marimekko Capital Markets Day 2024

Marimekko, Press Release, 11 September 2024 at 10.00 AM

Marimekko will hold a Capital Markets Day for investors, financial analysts and financial media today, on 11 September 2024. The event, held in English, will start at 13:30 EEST and can be followed as a live webcast at https://marimekko.videosync.fi/cmd-2024.

During the event, Marimekko’s President and CEO Tiina Alahuhta-Kasko together with other members of top management will elaborate on the progress of Marimekko’s SCALE strategy for years 2023–2027. They will focus, in particular, on describing the most important growth drivers in the different market areas and their role in the company’s growth strategy. In addition, the management will discuss the enablers of international growth. In addition to Tiina Alahuhta-Kasko, members of the Management Group presenting at the event will include Rebekka Bay (Creative Director), Natacha Defrance (Senior Vice President, Sales, Region East), Mikki Inkeroinen (Chief Technology Officer), Noora Laurila (Senior Vice President, Sales, Region West) and Sanna-Kaisa Niikko (Chief Marketing Officer).

A recording of the event and the presentation materials of the Capital Markets Day will be available on the company website after the event.

More information:
Anna Tuominen, Communications and IR Director
Tel. +358 40 5846944
anna.tuominen@marimekko.com

DISTRIBUTION:
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 38 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com.

2024-08-15 Marimekko’s financial reporting and Annual General Meeting in 2025

Marimekko Corporation, Stock Exchange Release, 15 August 2024 at 8.15 a.m.

Marimekko’s financial reporting and Annual General Meeting in 2025

In 2025, Marimekko Corporation will publish financial information as follows:
Financial Statement Bulletin 2024 on Wednesday 19 February 2025 at 8.00 a.m.
Interim Report 1 January–31 March 2025 on Wednesday 14 May 2025 at 8.00 a.m.
Half-year Financial Report 1 January–30 June 2025 on Wednesday 13 August 2025 at 8.00 a.m.
Interim Report 1 January–30 September 2025 on Friday 31 October 2025 at 8.00 a.m.

Marimekko observes a silent period of 30 days prior to publishing of financial information.

The company’s Financial Statements and the Report of the Board of Directors 2024 will be published in week 12, at the latest.

Marimekko’s Annual General Meeting is planned to be held on Tuesday 15 April 2025 at 2 p.m. The notice to convene the Annual General Meeting will be given later by the Board of Directors. A shareholder may request that a matter falling within the competence of the General Meeting shall be placed on the agenda of the Annual General Meeting. To this effect, a written request should be sent to the Board of Directors on Wednesday 22 January 2025, at the latest. An announcement on the resolutions of the Annual General Meeting will be released after the meeting.

MARIMEKKO CORPORATION
Corporate Communications

Anna Tuominen
Tel. +358 40 5846944
anna.tuominen@marimekko.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2023, the company's net sales totaled EUR 174 million and comparable operating profit margin was 18.4 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 38 countries.The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 470 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com

2024-08-15 HALF-YEAR FINANCIAL REPORT OF MARIMEKKO CORPORATION, 1 January – 30 June 2024: Marimekko’s net sales continued to grow in the second quarter, operating profit slightly behind the comparison period but cumulative operating profit improved

Marimekko Corporation, Half-year Financial Report, 15 August 2024 at 8.00 a.m.

HALF-YEAR FINANCIAL REPORT OF MARIMEKKO CORPORATION, 1 January – 30 June 2024: Marimekko’s net sales continued to grow in the second quarter, operating profit slightly behind the comparison period but cumulative operating profit improved

This release is a summary of Marimekko’s half-year financial report for the January-June period of 2024. The complete report is attached to this release as a pdf file and it is also available on the company’s website at company.marimekko.com under Releases & publications.

The second quarter in brief

Marimekko’s net sales increased by 8 percent and totaled EUR 43.7 million (40.3). Net sales were boosted in particular by the growth of wholesale sales in Finland and Scandinavia as well as increased retail sales in Finland.
Net sales in Finland grew by 11 percent. Domestic wholesale sales grew mainly as a result of non-recurring promotional deliveries. Retail sales in Finland increased by 5 percent. International sales grew by 6 percent as, in addition to Scandinavian wholesale sales, retail sales grew in all market areas.
Operating profit was EUR 6.1 million (6.6). Comparable operating profit was slightly behind the strong comparison period and totaled EUR 6.4 million (6.8) equaling to 14.6 percent of net sales (16.8).
Higher fixed costs and weakened relative sales margin decreased operating profit in the second quarter of the year. On the other hand, increased net sales had a positive impact on operating profit.

January–June in brief

Company’s net sales grew by 8 percent and amounted to EUR 81.3 million (75.6). Net sales were boosted by increased wholesale and retail sales in Finland as well as growth in international sales.
Net sales in Finland increased by 9 percent due to, in particular, non-recurring promotional deliveries in wholesale sales and favorable development of retail sales. International sales grew by 6 percent bolstered by the wholesale sales in the Asia-Pacific region.
Operating profit improved to EUR 11.2 million (10.4) and comparable operating profit to EUR 11.6 million (10.6) equaling to 14.2 percent of net sales (14.0).
Operating profit was boosted especially by increased net sales. On the other hand, an increase in fixed costs had a weakening impact on operating profit.

Financial guidance for 2024

The Marimekko Group's net sales for 2024 are expected to grow from the previous year (2023: EUR 174.1 million). Comparable operating profit margin is estimated to be approximately some 16–19 percent (2023: 18.4 percent). Development of consumer confidence and purchasing power, particularly in Finland, global supply chain disruptions and the general inflation development cause volatility to the outlook for 2024.

Uncertainties related to the development of net sales and result are described in more detail in the Major risks and factors of uncertainty section of the Half-year Financial Report.

Key figures

(EUR million)	4–6/ 2024	4–6/ 2023	Change, %	1–6/ 2024	1–6/ 2023	Change, %	1–12/ 2023
Net sales	43.7	40.3	8	81.3	75.6	8	174.1
International sales	19.1	18.1	6	37.4	35.4	6	75.2
% of net sales	44	45		46	47		43
EBITDA	8.5	8.8	-4	15.8	15.0	6	40.6
Comparable EBITDA	8.7	9.0	-4	16.2	15.2	7	41.2
Operating profit	6.1	6.6	-7	11.2	10.4	8	31.4
Operating profit margin, %	14.0	16.4		13.8	13.8		18.0
Comparable operating profit	6.4	6.8	-6	11.6	10.6	9	32.0
Comparable operating profit margin, %	14.6	16.8		14.2	14.0		18.4
Result for the period	4.7	4.8	0	8.6	7.2	20	23.6
Earnings per share, EUR	0.12	0.12	0	0.21	0.18	20	0.58
Comparable earnings per share, EUR	0.12	0.12	1	0.22	0.18	22	0.59
Cash flow from operating activities	11.0	5.0	122	10.3	2.9		29.4
Gross investments	0.7	0.5	47	1.2	0.7	72	2.0
Return on capital employed (ROCE), %				38.5	34.4		33.0
Equity ratio, %				53.2	47.4		54.1
Gearing, %				6.8	32.7		-6.3
Net debt / EBITDA (rolling 12 months)				0.10	0.43		-0.10
Personnel at the end of the period				490	484	1	468
outside Finland				76	69	10	83
Brand sales 1	90.7	104.0	-13	190.5	188.5	1	376.7
outside Finland	59.9	76.8	-22	133.6	136.8	-2	249.0
proportion of international sales, %	66	74		70	73		66
Number of stores				166	157	6	167

The change percentages in the table were calculated on exact figures before the amounts were rounded to millions of euros. The figure for comparable earnings per share takes account of similar items as comparable operating profit; tax effect included. Reconciliation of alternative key figures to IFRS and management’s discretion regarding items affecting comparability are presented in the table section of the Half-year Financial Report.

1 Brand sales are given as an alternative non-IFRS key figure, representing the reach of the Marimekko brand through different distribution channels. An unofficial estimate of sales of Marimekko products at consumer prices, brand sales are calculated by adding together the company’s own retail net sales and the estimated retail value of Marimekko products sold by other retailers. The estimated retail value is based on the company’s realized wholesale sales and licensing income. Brand sales do not include VAT, and the key figure is not audited. Some licensees provide exact retail figures, in which case these figures are used in reporting brand sales. For other licensing agreements, Marimekko’s own retail coefficients for different markets are used. Licensing income is reported as brand sales when licensed products are sold.

Tiina Alahuhta-Kasko, President and CEO, in conjunction with the report:

“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."

Market outlook and growth targets for 2024