This year a total of 19 new Marimekko stores will be opened, 12 of them outside Finland. The openings are clearly concentrated in the latter part of the year: eight stores were opened during the third quarter and a further seven stores will be opened in the last quarter. The stores opened during the first half of the year have boosted growth in net sales, but wholesale and comparable sales in company-owned stores also grew well. From January to September, our net sales grew by 17% and international sales by 32%.
Due to the seasonality of our business, the bulk of net sales and profit accumulation tends towards the second half of the year. During the third quarter, there was a clear change for the better in our trend in earnings, as had been expected. Our operating profit grew by 50% in July to September despite the fact that increased expenses for expanding business operations in particular continued to exert a drag on profits. I am pleased that our cash flow was strong in the third quarter and that we succeeded at the same time in reducing our stocks and improving our sales margins. In respect of the last quarter, it must be borne in mind that retail and particularly Christmas sales contribute a considerable proportion of sales.
This autumn, we have also taken important steps forward by appearing in international fashion arenas on a considerably larger scale than before. For the first time, we took part in New York Fashion Week. The purpose of our fashion show was to support both our existing stores in New York, Boston and Cambridge and the new ones in Beverly Hills and Palo Alto. Last week, we staged an unprecedented show in Shanghai’s People’s Park. The show gave us valuable visibility which we are seeking to use to support our growth strategy in China. Our aim is to open 14 stores there by the end of 2016.”
Marimekko is a Finnish textile and clothing design company renowned for its original prints and colours. The company designs and manufactures high-quality interior decoration items ranging from furnishing fabrics to tableware as well as clothing, bags and other accessories.
Marimekko