Marimekko Corporation, Stock Exchange Release, 31 January 2013, 8:45 AM
Marimekko is expanding its operations in all its main market areas. In Northern Europe, the company is expanding its network of company-owned stores, while in North America the main thrust is on developing shop-in-shop partnerships with local department stores. In the Asia-Pacific region, the main focus for expansion is on China and Japan.
Marimekko is undergoing a dynamic phase of internationalisation. In 2013, the goal is to open a total of 15 to 24 new Marimekko stores and shop-in-shops. Of these, 4 to 6 stores would be Marimekko-owned and the remainder will be retailer-owned stores and shop-in-shops. Over half of the openings have already been confirmed and the dates for the rest will depend on finding suitable retail premises.
In Northern Europe, the aim is to open 4 to 6 new company-owned stores this year: 2 to 3 in Finland and 2 to 3 in Scandinavia. Sales in the region will also be underpinned by the expansion of Marimekko’s online retailing to Sweden. In addition, there are plans to open 3 new shop-in-shops in Finland.
Marimekko’s long-term strategic aim in North America is to expand distribution through high-class department stores and specialist retailers as well as to open new Marimekko stores. In 2012, Marimekko invested strongly in its network of company-owned stores in the United States by opening four new stores: three in major cities on the East and West Coast – Boston, Palo Alto and Beverly Hills – and one in Manchester, Vermont. The purpose of the company-owned stores is also to attract the attention of classy department stores and other retailers to our products. So this year, the main thrust in North America will be on actively enhancing partnerships with department stores. A number of new Marimekko shop-in-shops are being opened in Canada and Mexico. The aim of a partnership contract signed by Marimekko and the modern furniture brand EQ3 in 2012 is to open a total of 10 Marimekko shop-in-shops in Canada by the end of 2014. The first of these was opened in September 2012 at EQ3’s new flagship store in Toronto. EQ3 intends to open 4 to 6 Marimekko shop-in-shops in its stores during the first half of this year. Marimekko also signed a partnership contract in 2012 with the leading Mexican department store chain El Palacio de Hierro. The department store chain aims in 2013 to open 3 to 4 shop-in-shops focusing on Marimekko’s interior decoration products.
In the Asia-Pacific region, the trend in sales has continued to be very strong. During 2012, China was opened up as a new market when Marimekko signed a partnership agreement with Hong Kong-based Sidefame. The objective is to open a total of 15 Marimekko stores in China by the end of 2016. The first of these was opened in Hong Kong in May 2012 and this year it is intended to open 2 to 3 stores. In Japan, Marimekko’s local partner Look Inc. intends to open two new Marimekko stores this year in addition to the 23 stores already open. Marimekko has also invested more than before in Australia, where it opened two company-owned retail stores in 2012.
In 2012, a total of 19 new Marimekko stores and shop-in-shops were opened, 12 of which were outside Finland. Of the stores opened, 11 are company-owned. Investing strongly in expanding the network of company-owned stores has changed the ratio of wholesale to retail, and this ties up more of the company’s capital and resources than previously. A growing proportion of the Group’s net sales comes from the sales of company-owned stores, which increases the seasonality of Marimekko’s business and shifts the focus in the accrual of net sales and operating profit strongly to the final quarter of the year. In 2013, the main thrust in expansion will be on opening retailer-owned Marimekko stores and shop-in-shops. Moreover, the company will invest in the development of business in the stores it opened in 2012.
In the financial statements bulletin released today, the planned total investments of the Marimekko Group for 2013 are estimated to be in excess of 3 million euros. The above-mentioned store openings are included in this estimate.
Further information: President and CEO Mika Ihamuotila, tel. +358 9 758 71
Tel. +358 9 758 7473
NASDAQ OMX Helsinki Ltd
Marimekko is a Finnish textile and clothing design company renowned for its original prints and colors. The company designs and manufactures high-quality interior decoration items ranging from furnishing fabrics to tableware as well as clothing, bags and other accessories. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in approximately 40 countries. In 2012, brand sales of Marimekko products worldwide amounted to approximately EUR 187 million and the company's net sales were EUR 88 million. The number of Marimekko stores totaled 108 at the year end. The key markets are North America, Northern Europe and the Asia-Pacific region. The Group employs around 500 people. The company’s share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com