Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Marimekko Oyj (MKKOF) reported a 5% increase in net sales, reaching 39.6 million, driven by growth in wholesale sales in Europe and retail sales in Finland.
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Retail sales grew by 9% in Finland, showcasing strong performance despite a challenging macroeconomic environment.
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International sales increased by 14%, with both wholesale and retail sales performing well across all market areas.
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The company opened four new stores in the first quarter, including a new partnership in Canada and an online store in New Zealand, expanding its global presence.
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Marimekko Oyj (MKKOF) maintained a strong comparable operating profit margin of 11.1% of net sales, demonstrating effective cost management.
Negative Points
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Net sales in Finland decreased by 3% due to a decline in non-recurring promotional deliveries in domestic wholesale sales.
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Licensing income in the Asia Pacific region was significantly lower than the previous year, impacting overall net sales.
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The company faced higher fixed costs due to increased personnel expenses and index increases in different markets.
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Higher discounts compared to the previous period negatively affected the relative sales margin.
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The company anticipates lower licensing income for the full year 2025 compared to the previous year's record level, which may impact profitability.
Q & A Highlights
Q: How is Marimekko managing the impact of tariffs on its US operations? A: Marimekko has a diversified supply chain across 15 countries, including China, Thailand, Portugal, Estonia, Turkey, and Finland. The company is mitigating tariff impacts by front-loading goods and seeking efficiencies elsewhere. While there is pressure to raise prices due to tariffs and inflation, Marimekko is cautious about consumer confidence and purchasing power. The North American market, which includes the US, accounted for only 6% of net sales in 2024, limiting the direct impact of tariffs. (CFO)
Q: Why did Marimekko choose a loose franchise partnership for its new operations in Canada? A: Marimekko has successfully used the loose franchise partnership model in Asia for nearly two decades. This model allows for global brand coherence while scaling growth with low risk and low capital expenditure. The new partnership in Canada will help develop Marimekko's omnichannel business, leveraging local market expertise. (CEO)
Q: What factors contributed to the strong performance of the ready-to-wear product line in Q1? A: The strong performance of the ready-to-wear line is attributed to the good resonance of Marimekko's collections with customers. Seasonal fluctuations may also play a role, but overall, the collections have been well-received. (CEO)