Home / Knowledge / News / Textiles / Brand sales of Marimekko products up
Brand sales of Marimekko products up
03
May '11
Marimekko Corporation's announced Interim report, 1 January - 31 March 2011. During the January-March period of 2011, the Marimekko Group's net sales increased in line with expectations. Investments in distribution network and development of business operations caused operating profit to fall.

• Net sales grew by 7.7% to EUR 17.2 million (EUR 16.0 million). Sales in Finland increased by 3.7% and international sales rose by 14.5%.
• Operating profit was EUR 0.4 million (EUR 1.2 million), which was down 70.6%. Operating profit for the period includes a non-recurring expense of EUR 0.2 million related to personnel reductions. Operating profit excluding non-recurring items decreased by 56.7% to EUR 0.5 million (EUR 1.2 million).
• Profit after taxes for the period was EUR 0.3 million (EUR 0.9 million).
• Earnings per share were EUR 0.04 (EUR 0.12).
• Investments amounted to EUR 1.6 million (EUR 0.3 million).
• The full-year forecast for 2011 remains unchanged: the Group's net sales are estimated to grow by roughly 5-10%, but operating profit is forecast to decline by some 40-60% compared with the previous year.
• Brand sales of Marimekko products were EUR 38.9 million (EUR 34.4 million), up 13.0%.

Mika Ihamuotila, President and CEO:

“Development in the first quarter of the year was as expected. Net sales of the company increased as anticipated, by 7.7%, reaching EUR 17.2 million. Estimated brand sales of Marimekko products during the period rose by 13.0%. The Group's profitability, however, fell significantly: operating profit declined by 70.6% and was EUR 0.4 million. Operating profit for the period includes a non-recurring expense of EUR 0.2 million related to personnel reductions.

“Operating profit excluding non-recurring items decreased by 56.7% to EUR 0.5 million. Earnings were depressed by substantial investments in developing our business operations and distribution network in the United States, increased personnel expenses as well as a decrease in royalty income.

“In addition, marketing costs for the period were higher than in the comparison period. Marketing expenses in the corresponding period of 2010 were exceptionally low, while store openings and different events celebrating the company's anniversary raised marketing costs in the first quarter of the current year. Earnings were improved by increased sales in Japan, North America, Finland as well as Central and Southern Europe.

“During the review period, a new flagship store was opened in Helsinki, and Japan saw the opening of its 21st Marimekko concept store. In February, we announced a machinery investment for our textile printing facility, which will triple the output capacity of the factory. The added capacity will be deployed in stages; the investment will enable us to prepare for higher demand in the future.

“Our special focus during the period was on the United Sates where we were working closely on building e-commerce and related logistics as well as our flagship store which will be opened in New York City. Our collaboration with the American company Converse, launched globally in February, has been a success both commercially and in terms of international media coverage. Our collaboration with the home furnishings retailer Crate and Barrel is expanding.

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Rupa Sood and Sharan Apparao
Nayaab

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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
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