The Finnish cult fashion label Marimekko had to accept a lower profit in the first quarter, even though the sales rose.
The proceeds rose by 5 percent to 39.6 million euros, in particular driven by the growth of the wholesal business and higher retail sales in Finland.
However, the total turnover in the Finnish home market decreased by 3 percent, since the one -time advertising campaigns in Germany were lower. International sales grew by 14 percent, with both wholesale and retailers developing well.
Profitability suffers from costs
However, the positive sales development did not transfer to the profitability of the fashion company. The profit decreased by 16 percent to 3.3 million euros.
Higher price discounts and fixed costs burdened profitability, as well as lower licenses.
Outlook positively to insecure
For the current financial year, Marimekko expects an increase in net sales compared to the previous year’s value of 182.6 million euros. The company did not put the forecast in the annual report more precisely. The operating profit margin is expected at around 16-19 percent, in 2024 it was 17.5 percent.
“Rapid changes and uncertainties in global trade policy, the development of consumer confidence and purchasing power in the main markets of the company as well as possible interruptions in the global supply chains provide volatility in the prospect for 2025,” said the company on Wednesday.