Marimekko's profit shrinks despite sales increase

Business

Marimekko launched its very first denim collection in August: Marimekko Maridenim. Credits: Marimekko

The Finnish fashion label Marimekko experienced a profit decline in the first quarter, despite increased sales. Revenue increased by 5 percent to 39.6 million euros, driven particularly by wholesale business growth and higher retail sales in Finland.

However, total sales in its Finnish home market decreased by 3 percent, as domestic promotional activities were reduced. International sales grew by 14 percent, with both wholesale and retail performing well.

Profitability affected by costs

However, the positive sales performance did not translate into profitability for the fashion company. Profit decreased by 16 percent to 3.3 million euros.

Profitability was impacted by higher markdowns and fixed costs, as well as lower licensing revenues.

Outlook positive to uncertain

For the current financial year, Marimekko expects an increase in net sales compared to the previous year's value of 182.6 million euros. The company did not specify the forecast more precisely in its business report. The operating profit margin is expected to be around 16 to 19 percent; in 2024, it was 17.5 percent.

“Rapid changes and uncertainties in global trade policy, the development of consumer confidence and purchasing power in the company's main markets, as well as possible disruptions in global supply chains, are causing volatility in the outlook for 2025,” the company announced on Wednesday.

This article was translated to English using an AI tool.

Marimekko

Marimekko Corporation