Finnish firm Marimekko’s net sales rose 9% in FY22

Helsinki-based fashion and textile company, Marimekko reported a 9 percent increase in net sales for fiscal year 2022 (FY22), reaching €166.51 million. The company’s sales were boosted by growing international sales and favorable trends in retail sales in Finland. However, sales weakened due to a decrease in Finnish wholesale sales due to significantly lower non-recurring promotional deliveries than in the comparable year.

Omnichannel retail sales, including both retail and online sales, grew 19 percent in FY22, while wholesale sales were at year-ago levels, and licensing revenue grew 19 percent.

Marimekko’s net sales in Finland were €98.23 million in FY22, with retail sales up 21 percent and comparable retail sales up 17 percent. However, wholesale sales in Finland fell 13 percent due to lower non-recurring promotional deliveries, the company said in a press release.

Marimekko reported net sales growth of 9 percent for fiscal 2022, driven by growing international sales. The company’s omnichannel retail sales grew 19 percent, while wholesale sales were flat. For the period 2023-2027, the company is targeting annual growth in net sales of 15 percent and a comparable operating profit margin of 20 percent.

In the Asia-Pacific region, Marimekko’s second largest market, net sales in FY22 grew by 17 percent to €30.30 million. Wholesale sales in the region increased by 10 percent and retail sales increased by 57 percent, as own stores were not temporarily closed during the year due to the pandemic situation as in the previous year.

Marimekko’s operating profit in FY22 was €30.23 million, with operating profit accounting for 18.2 percent of net sales. Operating profit was weakened by fixed cost increases and a lower relative sales margin. On the other hand, operating profit was supported by increased net sales and lower depreciation compared to the comparative year. Moreover, the company’s comparable EBITDA in FY22 was €40 million, down from €43.1 million in FY22.

In FY22, the company reduced greenhouse gas emissions per kg of textile materials by 7 percent compared to 2019.

Marimekko revised its long-term financial goals for 2023-2027, aiming for annual net sales growth of 15 percent and a comparable operating profit margin of 20 percent, up from previous targets of 10 percent and 15 percent. , respectively. The net debt to EBITDA ratio is expected to remain unchanged at the end of the year, with a peak of 2, the release added.

Tina Alahuta-Casco, President and CEO, said: “In 2022, we have taken bold and productive steps to execute our growth strategy to delight and empower more people around the world through our prints and colors. After a record year in 2021, we increased our net sales by a further 9 percent to €166.5 million, although market conditions became more challenging towards the end of the year, particularly in our strong home market Finland.

“During the year, we continued our investment in the building blocks for our long-term international growth, while our comparable operating profit was at a high level and equaled 18.2 percent of net sales to €30.4 million.

“During the strategy period of 2018-2022 our objective was to achieve significantly stronger profitable growth than before by speaking to a wider target audience. OUR NET SALES AND PROFITABILITY

Fibre2Fashion News Desk (DP)