Finnish company Marimekko's net sales at €35.3 mn in Q1 FY23

Despite the dip in the net sales, the company saw a boost from increased retail sales within Finland and a rise in international wholesale sales, which nearly equalled the sales of the comparison period, the company said in a media release.

The weakened general consumer demand in Finland resulted in a 3 per cent decrease in domestic wholesale sales.

Operating profit for Q1 FY23 was €3.8 million, down from €6.6 million in the same period last year. The comparable operating profit also totalled €3.8 million, equalling 10.9 per cent of net sales, down from 18.4 per cent previously. The drop in operating profit was primarily due to a lower relative sales margin, mainly weakened by the decreased licensing income, and an increase in fixed costs compared to the same period the previous year.

“In the first quarter, our business developed as estimated. Our strong financial position enables investments in long-term growth.

Tiina Alahuhta-Kasko, President and CEO, said: “As estimated, net sales decreased due to a decline in domestic wholesale sales, which was caused by weaker general consumer demand in Finland, as well as lower licensing income in the EMEA region. Nevertheless, the strong appeal of our brand was demonstrated by the continued positive development of the domestic retail sales, with growth of 12 per cent. Globally our omnichannel retail sales increased by nine per cent.

“While international wholesale sales grew by eight per cent, our total wholesale sales decreased by four per cent due to the decline in domestic wholesale sales. Net sales in Finland decreased by three per cent for the same reason. International net sales were almost on a part with the comparison period. In spite of this anticipated fluctuation between quarters, we expect our full-year net sales to grow both in Finland and internationally.”

Fibre2Fashion News Desk (DP)