Marimekko Corporation, Stock Exchange Release, 22 July 2019 at 10.30 a.m.
MARIMEKKO RAISES ITS EARNINGS ESTIMATE; NET SALES ESTIMATE REMAINS UNCHANGED
In its interim report published on 16 May 2019, Marimekko Corporation estimated that the Group's net sales for 2019 would be higher than in the previous year and that the comparable operating profit would be approximately at the same level as the year before.
Marimekko now raises its earlier estimate of comparable operating profit for 2019 and changes the reference to the level of the previous year, due mainly to higher than estimated anticipated licensing income in the Asia-Pacific region. According to the new estimate, comparable operating profit for 2019 is expected to be higher than in the previous year, amounting at the most to approximately EUR 15 million.
The net sales estimate given in the interim report remains unchanged. The revised estimate in full is as follows: the Marimekko Group's net sales for 2019 are forecast to be higher than in the previous year and comparable operating profit is also expected to be higher than in the previous year, amounting at the most to approximately EUR 15 million.
Due to the seasonal nature of Marimekko’s business, the major portion of the company’s net sales and earnings are traditionally generated during the last two quarters of the year, and this is expected to be the case in 2019 as well. The share of holiday sales in particular of the company’s net sales for the last quarter is considerable and the outcome of the holiday season has an impact on results for the whole year.
The company reported in its interim report that wholesale sales in Finland in 2018 were boosted by nonrecurring promotional deliveries; there will be no promotional deliveries of comparable size in 2019. In 2018, there were promotional deliveries in each quarter and the largest deliveries took place in the second and final quarters. Due to growth investments, more costs than in 2018 are expected to occur in the remaining half of the year. The estimated effects of the long-term bonus system targeted at the company’s Management Group are also expected to exert a drag on the company's results in 2019. The effects will depend on the trend in the price of the company’s share during the year. In addition, Marimekko has become aware of cases of grey exports and has taken due action. The control of the cases may have a weakening impact on the company’s sales and earnings.
Marimekko’s half-year financial report will be issued on Thursday 15 August 2019 at 8.30 a.m.
MARIMEKKO CORPORATION
Corporate Communications
Asta Halme
Tel. +358 9 758 7233
asta.halme@marimekko.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
Marimekko is a Finnish lifestyle design company renowned for its original prints and colours. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2018, brand sales of the products worldwide amounted to EUR 248 million and the company's net sales were EUR 112 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com