Marimekko upbeat as sales and profits rise
Finland’s Marimekko said on Wednesday that its net sales and profits continued to increase in the third quarter to the end of September.
Net sales rose 11% to €42.4 million as the majority of Marimekko’s own stores were open in the third quarter. In Finland, net sales rose by 25%. But the firm’s actions to control grey market exports dented international sales, which were down by 10% in the period.
The company said the net sales were “boosted especially by a favorable trend in wholesale in Finland. The good trend in wholesale was supported in particular by non-recurring promotional deliveries”. That said, net sales were weakened by lower wholesale in EMEA, due to that grey market action, and lower licensing income in the Asia Pacific region.
Operating profit improved significantly, reaching €13.3 million from €10.5 million with earnings getting a boost from the sales rise but also from improved margins. However, an increase in fixed costs also dented the figure and these costs are expected to increase again in Q4 as a result of changes in accounting principles and investments in growth.
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