- Net sales grew by 14.2% to EUR 88.5 million (77.4).
International sales grew by 30.7% and were EUR 36.1 million (27.6). - The strongest growth was in North America at 56.1% and in the Asia-Pacific region at 50.5%, fuelled by the openings of new stores.
- In Finland, sales rose by 5.1% due to good growth in retail sales, reaching EUR 52.3 million (49.8).
- Operating profit fell by 42.8% and was EUR 2.0 million (3.5). A drag on operating profit was exerted by the loss posted by stores in Sweden and the United States at the launching stage, expenses related to expansion of business, and a decline in wholesale sales in Finland, Scandinavia and the United States. Operating profit was also substantially burdened by the high expenses and low cost-effectiveness of in-house manufacturing in Finland.
- Cash flow from operating activities was EUR 8.6 million (0.7).
- Investments were EUR 7.6 million (9.2).
- Brand sales grew by 11.1% and reached EUR 187.2 million (168.6).
The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.25 per share be paid for 2012 (0.55).
Q4 of 2012
- Net sales grew by 9.2% to EUR 25.7 million (23.6).
- Operating profit fell by 99.2% to EUR 0.0 million (1.6).
- Cash flow from operating activities was EUR 5.9 million (2.5).
Market outlook and growth targets
The general uncertainty in the global economy is forecast to continue, and this may impact consumers’ purchasing behaviour in all of Marimekko’s market areas. The prospects for the European economic trend have deteriorated and growth is slow in the region. In the United States and Asia, economic forecasts are distinctly better than in Europe, but growth is fairly slow.
In Finland, market conditions are fair, but the economic prospects for trade and industry in Finland for the next few months have deteriorated markedly and retail sales are forecast to decline. (Confederation of Finnish Industries EK: Business Tendency Survey, November 2012, and Economic Review, December 2012). The weak trend in Marimekko’s own stores in Finland at the end of 2012 and lower consumer confidence overshadow prospects for this year in Finland.
The stores opened in 2012 and the other considerable investments made in the expansion of the distribution network will generate a marked increase in sales in 2013. The main thrust in expansion during 2013 will be on openings of retailer-owned Marimekko stores and shop-in-shops.
Furthermore, the company will invest in developing the business of the stores it opened in 2012. The aim is to open 15 to 24 Marimekko stores and shop-in-shops this year, 4 to 6 of which will be company-owned.
The planned total investments for 2013 of the Marimekko Group are estimated as being in excess of EUR 3 million. The majority of investments will be directed at building new store premises and purchasing new furniture.
Textiles | On 29th Apr 2017
The textile sector could have a uniform Goods and Services Tax (GST)...
Textiles | On 29th Apr 2017
European Union (EU) rules are needed to oblige textile and clothing...
Apparel/Garments | On 29th Apr 2017
The forecast for operating income growth in the US over the next 12...
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016
'Major problem in the textile machinery manufacturing industry is the lack ...
Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli
‘The percentage share of printing in the global textile market is pretty...
Very few machinery manufacturers have R&D units
The Indian market has huge potential in technical textiles, and by far,...
Bombay Textile Research Association
Bombay Textile Research Association (BTRA) is a leading name in textile...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
"We should not compare India and the West. There are things we do that...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...
Apparel/Garments | On 28th Apr 2017