Home / Knowledge / News / Apparel/Garments / Apparel retailer Marimekko lowers profit earning estimates
Apparel retailer Marimekko lowers profit earning estimates
14
Dec '12
In its interim report for the January-September period, published on 30 October 2012, Marimekko Corporation estimated that the Group’s net sales for the whole year would grow by over 10% and operating profit would at least double compared to 2011. The company is revising its earlier estimate of operating profit for 2012.

Christmas sales in Marimekko’s own retail stores in Finland and the company’s other main markets have taken off noticeably more slowly than anticipated. Partly for the same reason, orders by retailers in Finland have also been clearly lower than expected. In addition, the trend in some of the company-owned stores opened outside Finland in recent months has been below expectations.

As announced earlier, an increased share of the Group’s net sales comes from the sales of company-owned stores, which adds to the seasonality of the business and substantially shifts the main thrust of the accrual of net sales and operating profit to the final quarter.

This, together with increased fixed costs resulting from internationalization during the past few years and the expansion of the company’s own retail store network, markedly increases operating result fluctuations in both directions - negative in this case.

According to the new estimate, the Group’s operating profit for the whole year 2012 is forecast to be approximately at the same level as in 2011. The actual operating profit will depend critically on the trend in sales during the rest of the Christmas season.

The net sales estimate given in the interim report of 30 October 2012 remains unchanged. The updated forecast for 2012 in its entirety is as follows: the Marimekko Group’s net sales are estimated to grow by over 10% and operating profit is forecast to be approximately at the same level as in 2011.

Marimekko

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search