Net sales in Finland increased by 2 per cent due to favourable development of retail sales. International sales grew by 9 per cent with retail sales increasing in all and wholesale sales in nearly all market areas.
Marimekko has recorded net sales of €182.6 million (~$190.78 million) in full FY24, driven by retail growth in all markets.
Q4 saw record-high sales of €54 million (~$56.7 million), with strong retail performance.
In 2025, international sales, especially in Asia, are expected to grow, while Finland remains stable.
Marimekko’s 2025 outlook hit by economic uncertainty, low demand, and inflation.
The company’s operating profit totalled €31.4 million (~$32.97 million) and comparable operating profit €31.9 million (32.0) equalling to 17.5 per cent of net sales. Operating profit was boosted by increased net sales. On the other hand, especially higher fixed costs but also lower relative sales margin had a weakening impact on the operating profit.
Fourth quarter (Q4) financial
Marimekko’s net sales increased by 7 per cent in the fourth quarter (Q4) of FY24. The net sales totalled €54.0 million ($56.7 million), which made it the biggest quarter the company has ever had. The growth of net sales was driven particularly by the excellent development of its retail sales in all market areas.
In the important domestic market of Finland, retail sales grew by 8 per cent despite the continued challenging market situation. Total net sales in Finland grew by 3 per cent, while international net sales increased by 13 per cent, supported by growth in sales in all its market areas.
The operating profit was €9.1 million. Comparable operating profit totalled €9.3 million equalling to 17.1 per cent of net sales. Operating profit in Q4 improved due to an increase in net sales. On the other hand, lower relative sales margin had a weakening impact on the operating profit.
“Our net sales in the fourth quarter reached a record high, and our result improved despite the challenging market situation. We achieved sales growth in all market areas, which reflects our consistent efforts to scale up the Marimekko phenomenon internationally,” said Tiina Alahuhta-Kasko, president and chief executive officer (CEO), Marimekko. “We continued to take determined steps in executing Marimekko’s scale strategy in the fourth quarter. The third limited-edition brand collaboration collection of the year with the global Japanese apparel retailer Uniqlo supported our work to increase our brand awareness.”
“The various international collaboration collections help us introduce Marimekko to new customers. In addition, a jewellery collection made from recycled silver, created in partnership with Kalevala Jewelry, arrived in stores in October. We also continued to develop our omnichannel retail network. During the fourth quarter, five new stores were opened in Asia and one in Finland. We also delighted our customers with five pop-up stores, mainly in Asia,” added Kasko. “We are in an excellent position to continue our determined efforts in 2025 to scale up the company internationally by challenging the fashion and design industry with empowering optimism, the art of printmaking and timeless design.”
Outlook
Marimekko’s 2025 outlook is impacted by global economic uncertainties, geopolitical tensions, and inflation, affecting consumer confidence and purchasing power, particularly in Finland. The non-recurring promotional deliveries in wholesale sales are expected to be significantly lower than in the comparable year and weighted clearly in the second half of the year, added the release.
Despite the weak market situation, net sales in Finland are expected to be approximately at the level of the previous year. International sales, especially in Asia, are projected to grow, with plans to open 10–15 new stores, primarily in Asia.
In 2025, the company’s fixed costs are expected to be up on the previous year. The general cost inflation continues to also affect Marimekko in 2025. Personnel expenses are impacted, for example, by general pay increases in different markets. Marketing expenses are expected to increase from €10.6 million in 2024.
Fibre2Fashion News Desk (SG)