Home / Knowledge / News / Apparel/Garments / Net sales grow 14.2% at Marimekko in 2012
Net sales grow 14.2% at Marimekko in 2012
31
Jan '13
During 2012, the Marimekko Group’s net sales grew by 14 per cent and international sales by 31 per cent due to openings of new stores. Profitability declined, but cash flow increased significantly. The trend in the closing quarter of the year fell well short of expectations. In 2013, Marimekko will continue moderate investments in growth, concentrating particularly on improving the profitability of the stores opened in 2012.

Year 2012
- 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.

Marimekko

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search