Marimekko (MEKKO) CMD 2024 summary

Progress and execution of the SCALE strategy

• The SCALE strategy for 2023–2027 focuses on digitalization, globalization, and sustainability, with five pillars: Sustainability, Creative vision, Accelerating growth in Asia, Love (community), and End-to-end digitality.

• Asia-Pacific is the main growth engine, leveraging a scalable, low-risk franchise model for rapid, capital-light expansion, while maintaining a strong home base in Finland and expanding in North America, Scandinavia, and EMEA.

• Omnichannel direct-to-consumer channels, especially e-commerce and store expansion in Asia, are central to growth, complemented by wholesale, licensing, and brand collaborations.

• The business model in Asia uses loose franchise partnerships for local adaptation and low CapEx, supporting rapid market entry and scalability.

• No major changes to the SCALE strategy since launch; execution is on track, with continued confidence in long-term targets.

Financial guidance and targets

• Long-term annual net sales growth target is 15%, with a comparable operating profit margin goal of 20%.

• Net debt to EBITDA ratio capped at 2.0 at year end, maintaining a strong balance sheet.

• Committed to annual dividend payments, with at least 50% of earnings per share allocated to dividends.

• Ongoing investments in marketing, digitalization, and sustainability are supported by a strong financial position and stable dividend policy.

• High relative profitability and a proven track record of profitable growth, even in weaker macroeconomic environments.

Market area strategies and growth drivers

• Finland: Continued market share gains through omnichannel retail, community engagement, and product innovation, despite a challenging macroeconomic climate.

• Scandinavia & EMEA: Growth through omnichannel retail, wholesale modernization, key city ecosystems, and brand awareness initiatives.

• North America: Expansion via flagship stores, wholesale, e-commerce, and local collaborations to reinforce global positioning.

• Asia-Pacific: Accelerating growth with 90 physical stores and 24 online stores, focusing on Japan, China, Hong Kong, Taiwan, and Southeast Asia, leveraging the franchise model.

• Southeast Asia: Entered Singapore, Malaysia, and Vietnam, building on success in Thailand with omnichannel and community-driven strategies.