The net profit margin of the fashion icon similarly declined from 2.4 per cent to 1.9 per cent between April and June.

Marimekko reported on Wednesday that its operating profits, excluding non-recurring items, plunged to 300,000 euros in the second quarter of the year, signalling a decline of over 40 per cent from the 500,000 euros reported a year earlier.

Yet, Marimekko managed to grow – although partly as a result of favourable exchange rates. Its second-quarter net sales rose to 23.4 million euros, representing a year-on-year increase of 7 per cent or 3 per cent at comparable exchange rates.

Marimekko also reported that although its international net sales crept up by 5 per cent, they only accounted for 44 per cent of its overall turnover, 6 percentage points less than in the previous year. Domestic demand has therefore remained strong despite the lingering economic uncertainty.

More on the topic: - Alahuhta-Kasko to take over reins at Marimekko

“Although the state of retailing in Finland has continued to be challenging, as estimated at the beginning of the year, the trend in our retail sales during the second quarter was better than expected due to growth in discount-driven sales,” Tiina Alahuhta-Kasko, the newly-appointed chief executive at Marimekko, comments in a press release.

New stores and a strong dollar also contributed to the increase in net sales.

Alahuhta-Kasko took the reins at Marimekko last April as her predecessor, Mika Ihamuotila, replaced Pekka Lundmark as board chairman.

Marimekko also recorded a decrease in its wholesale sales margin and the profitability of its domestic stores, with the exception of outlet stores, in the first half of the year.

“Furthermore, investments in launching new collections and in digital communications increased design and marketing expenses. On the other hand, operating result was improved by an increase in royalty earnings in North America during the first quarter,” states Alahuhta-Kasko.

Marimekko said it will continue to digitise its operations in order to enter new markets.

“The trend in our online sales has continued to be positive and we will continue to focus on enhancing the customer experience to make it even more inspiring and more seamless between between our online concept and offline stores. As part of this process, we are also updating our store and service concept,” Alahuhta-Kasko says.

Karoliina Liimatainen – HS

Aleksi Teivainen – HT

© HELSINGIN SANOMAT

Photo: Heidi Piiroinen / HS