Marimekko (MEKKO) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached EUR 47.2 million, nearly matching last year's record, with strong retail growth offsetting lower wholesale in Finland.

• Retail sales grew 12% in Q3, especially in Finland (+8%), while international sales rose 9%.

• Cumulative net sales for January–September 2024 rose 4% to EUR 128.6 million, driven by retail in Finland and wholesale in Asia-Pacific.

• The SCALE growth strategy progressed well amid a challenging market environment.

• Maridenim denim collection launched, new ecommerce platform introduced, and store expansion continued, including Shanghai.

Financial highlights

• Q3 net sales: EUR 47.2 million (-1% year-over-year); 1-9/2024 net sales: EUR 128.6 million (+4%).

• Q3 comparable operating profit: EUR 11.1 million (23.5% margin); 1-9/2024: EUR 22.7 million (17.6% margin).

• Q3 EPS: EUR 0.21 (-19% to -20% year-over-year); 1-9/2024: EUR 0.42–0.43 (-3%).

• Cash flow from operating activities for 1-9/2024: EUR 14.7 million (+75% year-over-year).

• Cumulative brand sales reached EUR 309.5 million, up 10% year-over-year, with 71% from outside Finland.

Outlook and guidance

• Net sales for 2024 are expected to grow from 2023 (EUR 174.1 million).

• Comparable operating profit margin for 2024 is estimated at 16%-19% (2023: 18.4%).

• International and Asia-Pacific sales are expected to increase; Finnish sales to remain stable.

• Licensing income in 2024 is forecasted to be at the previous year's record level.

• Fixed and marketing costs will rise in 2024, partly due to Unikko's 60th anniversary events.