Fashion Brand Marimekko Raises Full-Year Profit Forecast

Finnish fashion brand Marimekko announced on Friday that it will raise its full-year profit forecast.

In the previously released interim financial report, the company expects full-year sales in FY1818 to be higher than FY2017, but operating profit "may be equal to or higher than FY2017." In the latest financial forecast released this Friday, the company said that due to better-than-expected sales of retail channels in Finland in August, the profit in FY18 will be higher. Marimekko Newchic Coupon maintains its previous sales forecast, but expects profits to grow by $12 million.

Due to the increase in wholesale channel sales in the third quarter and the increase in operating costs in the fourth quarter, the company expects most of its revenue to come from the second and third quarters, rather than the traditional third and fourth quarters.

Raising annual financial expectations is an important turning point for Marimekko. This means that the company's 2018-2022 development strategy is effective, including key personnel changes, improved design, active cooperation with other brands, and expanded retail channels.

This month, Marimekko's flagship store in Tokyo will be reopened after the renovation.

The key financial data for Marimekko as of June 30, 2018, in the first half of 2018, is as follows:

Sales increased by 16% year-on-year to 52.3 million euros, with Soufeel Coupons sales growth in all regions, with Finnish retail channel sales up 11% year-on-year, wholesale channel sales up 27%, and local market total sales of 28.06 million euros; Sales of wholesale channels in the Asia Pacific region increased by 22% year-on-year, with total sales of 11.22 million euros

Operating profit increased to 10.3 million euros year-on-year, compared with 1.6 million euros in the same period last year.

Earnings per share were 0.98 euros, compared to 0.08 euros in the same period last year

EBITDA (earnings before interest, taxes, depreciation and amortization) was €11.7 million, compared to €3.3 million in the same period last year.

Marimekko's financial forecast for FY 2018:

The Finnish market is an important local market for Marimekko, with sales accounting for about 50%, of which retail sales will perform well, and non-recurring promotions will have a positive impact on sales.

The Asia Pacific region is Marimekko's second largest market and sales will increase in FY 2018. Among them, Japan is the company's largest market in the region, Marimekko increases its stores in Japan at a certain rate every year, and the increase in stores and product categories will increase sales.

Sales of self-owned e-commerce and other online channels will continue to GeekBuying Coupons grow, and 10 to 15 stores and counters will be opened.