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Marimekko's exports up 25%, growth in home market 'slower than expected'

19 Aug '06

4 min read

The Group's exports and income from international operations rose by 24.8% to €7,888 thousand (€6,319 thousand). A significant boost to growth was provided by the new Marimekko concept stores established by retailers. During the period under review, concept stores opened in Antwerp, Belgium; Bergen, Norway; Lisbon, Portugal; Malmö, Sweden; and Tokyo, Osaka and Kyoto in Japan.

In January-June 2006, the Group's operating profit fell by 27.3% on the comparison period and was €3,596 thousand (€4,947 thousand). Operating profit as a percentage of the Group's net sales amounted to 11.0% (15.8%). The Group's marketing expenses totaled €2,003 thousand (€1,827 thousand), or 6.1% (5.8%) of net sales.

The Group's profit before taxes fell by 27.4% to €3,556 thousand (€4,901 thousand). Net profit for the review period decreased by 28.5% to €2,631 thousand (€3,678 thousand). Earnings per share were €0.33 (€0.46).

Earnings for the period were weakened by slow sales growth in Finland, higher fixed costs as well as the decline in the average clothing sales margin. In addition, earnings were burdened by expenses associated with the opening of the shops in the Kamppi Centre in Helsinki and in Frankfurt, Germany.

The business climate outlook remains favorable in all of Marimekko's key market areas. Full-year net sales growth in Finland is expected to be lower than forecast. The good trend in exports is anticipated to continue, and sales are expected to increase as predicted. Based on the market situation and trends in sales in the first part of the year, growth in full-year net sales is estimated to be well under 10%, the Group's growth target for 2006.

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