Marimekko (MEKKO) Q1 2025 earnings summary

Executive summary

• Net sales grew 5% year-over-year to EUR 39.6 million, driven by strong international wholesale and Finnish retail sales, despite lower non-recurring domestic promotional deliveries and licensing income.

• Comparable operating profit reached EUR 4.4 million (11.1% of net sales), reflecting a strong start to the year amid challenging market conditions, though down from EUR 5.2 million (13.8%) in Q1/2024.

• International sales rose 14%, now representing 53% of total net sales, with notable growth in Scandinavia (+38%) and Europe (+60%).

• Brand sales increased to EUR 102.7 million, with 74% generated outside Finland.

• Retail sales increased 12% across all markets; four new stores and three pop-ups were opened globally in Q1.

Financial highlights

• Net income for Q1/2025 was EUR 3.3 million, down from EUR 3.9 million in Q1/2024.

• Cash flow from operating activities was negative at EUR -3.2 million, mainly due to higher inventories.

• Gross investments totaled EUR 0.9 million, focused on store network and digital development.

• Equity ratio stood at 61.5% (up from 58.4% in Q1/2024); net debt/EBITDA at -0.11.

• Comparable EPS was EUR 0.08 (EUR 0.10 in Q1/2024), down 16%.

Outlook and guidance

• Net sales for 2025 expected to grow from EUR 182.6 million in 2024, with comparable operating profit margin estimated at 16–19% (2024: 17.5%).

• Finnish net sales expected to be at or slightly above last year’s level, a slight upgrade from previous guidance.

• International and Asia-Pacific sales projected to increase, with 10–15 new stores planned, mostly in Asia.

• Licensing income for 2025 estimated to be significantly lower than the previous year’s record.

• Fixed and marketing costs expected to rise due to inflation and business scaling.