Finnish design house Marimekko has reported net sales of €47.2 million (~$50.48 million) for the third quarter (Q3), ended September 30, 2024, making a dip of 1 per cent from €47.9 million (~$51.4 million) in Q3 2023. The operating profit for the company was €11.1 million (~$12.1 million) from €12.9 million in Q3 2023.
EBITDA for the company was €13.4 million, down by 12 per cent year-over-year (YoY) and comparable EBITDA was €13.5 million, a decrease of 13 per cent. The operating profit stood at €11.1 million, down by 14 per cent, with an operating profit margin of 23.5 per cent. The comparable operating profit was €11.1 million, a decline of 15 per cent, yielding a comparable margin of 23.5 per cent, Marimekko said in a press release.
The earnings per share (EPS) for the company was €0.21, down 19 per cent, and comparable EPS stood at €0.21, dropping by 20 per cent. Net sales were weakened 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 per cent. Meanwhile international sales for the company were €21.5 million, up by 9 per cent, accounting for 46 per cent of net sales.
Net sales in Finland decreased by 9 per cent when non-recurring promotional deliveries, as expected, were lower than in the strong comparison period. Retail sales in Finland increased by 8 per cent. International sales grew by 9 per cent with both retail and wholesale sales increasing. Higher fixed costs decreased operating profit in Q3 of the year. Brand sales increased by 29 per cent to €119.1 million in Q3 and international brand sales grew by 56 per cent in Q3 to €85.2 million.
Performance in the first nine months (9M)
The company’s net sales grew by 4 per cent YoY to €128.6 million in this period. Net sales were especially boosted by the growth of retail sales in Finland and an increase in wholesale sales in the Asia-Pacific region. The operating profit of the company totalled €22.3 million, down 4 per cent YoY, with an operating profit margin of 17.3 per cent.
EBITDA for the 9M period was €29.3 million, down by 3 per cent; comparable EBITDA stood at €29.7 million, down 3 per cent YoY. EPS for 9M period was €0.42, a slight decrease of 3 per cent YoY, and comparable EPS stood at €0.43, down by 3 per cent YoY, stated the press release.
The international sales reached €58.9 million, up by 7 per cent, representing 46 per cent of the total sales. Net sales in Finland increased by 2 per cent due to favourable development of retail sales. International sales grew by 7 per cent with retail sales increasing in all and wholesale sales in nearly all market areas.
International brand sales grew by 14 per cent for the nine-month period (9M) in 2024. The number of stores at the end of 9M period in 2024 were 166, consistent with the same period in 2023. Brand sales increased by 10 per cent to €309.5 million over the nine-month period.
Financial guidance for 2024
The Group’s net sales for 2024 are expected to grow from the previous year (2023: €174.1 million). Comparable operating profit margin is estimated to be 16–19 per cent (2023: 18.4 per cent). 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, stated the release.
Tiina Alahuhta-Kasko, president and chief executive officer (CEO) said: “Marimekko continued to progress well in its scale growth strategy in the third quarter despite 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 par with the record high achieved in the comparison period, amounting to €47.2 million. 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 per cent 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.”
Fibre2Fashion News Desk (SG)
