Marimekko Corporation, Stock Exchange Release, 21 September 2018 at 8.30 a.m.
MARIMEKKO RAISES ITS EARNINGS ESTIMATE; NET SALES ESTIMATE REMAINS UNCHANGED
In its half-year financial report published on 9 August 2018, Marimekko Corporation estimated that the Group's net sales for 2018 would be higher than in the previous year and that comparable operating profit would be at the same level as or higher than in the previous year.
Marimekko now revises its earlier estimate of comparable operating profit for 2018 and removes the reference to the level of the previous year, due mainly to a better-than-expected trend in retail sales in Finland in August. According to the new estimate, comparable operating profit for 2018 is expected to be higher than in the previous year, amounting at the most to approximately EUR 12 million.
The net sales estimate given in the half-year financial report remains unchanged. The revised estimate in full is as follows: the Marimekko Group's net sales for 2018 are forecast to be higher than in the previous year; comparable operating profit for 2018 is expected to be higher than in the previous year, amounting at the most to approximately EUR 12 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. In its half-year financial report, the company stated that its strong net sales and earnings in the second quarter of 2018 were partly due to timing-related factors. The company also reported that its sales in Finland in 2018 are positively impacted by nonrecurring promotional deliveries; about half of the deliveries took place in the second quarter and the remainder is fairly evenly distributed over the other quarters of the year.
The company currently estimates that, unlike usually, most of its 2018 earnings are generated during the second and third quarters. More costs than in 2017 are expected to occur in the final quarter of the year. Furthermore, during the second half of the year, a somewhat larger part of wholesale sales will be generated in the third quarter. Typically, 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 a significant impact on results for the whole year.
Marimekko’s interim report for January-September period will be issued on Thursday 1 November 2018 at 8.30 a.m.
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Marimekko is a Finnish 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 2017, brand sales of the products worldwide amounted to EUR 193 million and the company's net sales were EUR 102 million. Roughly 160 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