MARIMEKKO on Thursday reported that its operating profit more than doubled from the previous year between January and March.
The Finnish fashion house said it registered an operating profit of 2.6 million euros in the first quarter of the year, following an up-tick of seven per cent in domestic net sales and one of 18 per cent in international net sales.
“The year got off to an excellent start. The strong figures in the first quarter were driven by a change in the timing of wholesale deliveries and a favourable trend in Finnish retail sales,” stated Tiina Alahuhta-Kasko, the CEO of Marimekko.
“All in all, I feel we can be pleased with the first quarter.”
Marimekko revealed that its group-wide net sales increased by 13 per cent year-on-year to 27.1 million euros, driven primarily by retail sales growth in Finland and Asia-Pacific. The 18 per cent increase in international net sales, however, was attributable largely to a shift in wholesale deliveries from the fourth quarter of last year to the first quarter of this year in Asia-Pacific.
Alahuhta-Kasko also estimated that the expansion of e-commerce has become a key growth driver for Marimekko. The Finnish company, she said, has continued to invest in building brand recognition and ramping up online sales in China and has added its products to the selection of Zalando, one of the leading online fashion platforms in Europe.
The release of the first-quarter report sent shares in the fashion house surging on Helsinki Stock Exchange. Helsingin Sanomat wrote that the share value had risen by over 16 per cent by the end of play on Thursday.
Aleksi Teivainen – HT
