MARIMEKKO FINANCIAL STATEMENTS BULLETIN 2025: Marimekko’s net sales in the fourth quarter grew from the comparison period’s record level and operating profit margin was at a good level despite the continued challenging market situation

Core Insights - Marimekko's net sales in the fourth quarter of 2025 increased by 1 percent to EUR 54.7 million, driven by growth in retail and wholesale sales in the Asia-Pacific region, despite a challenging market environment [11][12][8] - The company reported a comparable operating profit margin of 16.1 percent for the fourth quarter, slightly down from 17.1 percent in the previous year, impacted by higher fixed costs [14][8] - For the full year 2025, net sales grew by 4 percent to EUR 189.6 million, with comparable operating profit reaching EUR 32.3 million, representing 17.1 percent of net sales [15][8] Fourth Quarter Summary - International sales increased by 5 percent, while domestic sales in Finland decreased by 1 percent due to lower retail sales [13][8] - The operating profit for the fourth quarter was EUR 8.7 million, down from EUR 9.1 million in the previous year, affected by increased fixed costs [14][8] - The company experienced a growth in omnichannel retail sales globally, with a total increase of 2 percent in the fourth quarter [13][12] Year 2025 Summary - Marimekko's total net sales for 2025 were EUR 189.6 million, up from EUR 182.6 million in 2024, with international sales growing by 7 percent [15][8] - The comparable operating profit for the year was EUR 32.3 million, slightly up from EUR 31.9 million in 2024, with a margin of 17.1 percent [15][8] - The company faced challenges with licensing income, which was significantly lower than the previous year [15][8] Dividend Proposal - The Board of Directors proposed a dividend of EUR 0.42 for 2025, with the record date set for April 20, 2026, and payout date on April 27, 2026 [4] Financial Guidance for 2026 - Marimekko expects net sales to grow in 2026, with a comparable operating profit margin estimated to be around 16–19 percent [5][22] - The outlook for 2026 is influenced by consumer confidence, purchasing power, and geopolitical uncertainties, which may cause volatility [5][22] - The company plans to open approximately 10–15 new stores in 2026, primarily in the Asia-Pacific region [24][22] Brand Development and Market Positioning - Marimekko opened its first flagship store in Paris in late October 2025, aiming to enhance brand awareness and positioning in key global markets [16] - The company also expanded its store network in Asia, with new flagship stores in Hong Kong, Tokyo, and Bangkok, and several pop-up stores transitioning to permanent locations [17] - The launch of a new Marimekko app for customer loyalty program members aims to enhance the omnichannel retail experience [18] Market Outlook - The company anticipates challenges in the Finnish market due to a weak economy and low consumer confidence, but expects domestic sales to increase in 2026 [23][22] - International sales, particularly in the Asia-Pacific region, are projected to grow, although initial sales growth may be muted in the first quarter of 2026 [24][22] - Licensing income is expected to remain stable compared to the previous year, with a significant portion of sales traditionally generated in the second half of the year [25][22]