Marimekko - Inside information

MARIMEKKO RAISES ITS EARNINGS ESTIMATE; NET SALES ESTIMATE REMAINS UNCHANGED

MARIMEKKO RAISES ITS EARNINGS ESTIMATE; NET SALES ESTIMATE REMAINS UNCHANGED

Marimekko Corporation, Inside Information, 14 October 2019 at 9.00 a.m.

In its half-year financial report published on 15 August 2019, Marimekko Corporation estimated that the Group's net sales for 2019 would be higher than in the previous year and that the comparable operating profit would also be higher than in the previous year, amounting at the most to approximately EUR 15 million.

Marimekko now raises its earlier estimate of comparable operating profit for 2019, due mainly to stronger than estimated sales growth and improved sales outlook in Finland as well as better than estimated trend in relative sales margin. According to the new estimate, comparable operating profit for 2019 is expected to be higher than in the previous year, amounting to approximately EUR 17 million.

The Group’s 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 2019 are forecast to be higher than in the previous year and comparable operating profit is also expected to be higher than in the previous year, amounting to approximately EUR 17 million.

Due to the seasonal nature of Marimekko’s business, the major portion of the company’s net sales and earnings have historically been generated during the last two quarters of the year. In 2018, contrary to the historical trend, most of the company’s earnings were generated during the second and third quarters of the year, which according to Marimekko’s revised outlook is expected to be the case in 2019 as well.

The company reported in its half-year financial report that wholesale sales in Finland in 2018 were boosted by nonrecurring promotional deliveries. In 2019, the total value of promotional deliveries will be significantly lower than last year, and the major deliveries will occur in the fourth quarter of the year. As communicated earlier, the company estimates that more costs than in 2018 will occur during the remainder of the year. The estimated effects of the long-term bonus system targeted at the company’s Management Group are also expected to exert a drag on the company's results in 2019. The effects will depend on the trend in the price of the company’s share during the year. In addition, Marimekko has taken due action in connection with the cases of grey exports it has become aware of, and the control of the cases will have a weakening impact on the company’s sales and earnings.

Marimekko’s interim report for January-September period will be issued on Wednesday 6 November 2019 at 8.30 a.m.

MARIMEKKO CORPORATION
Corporate Communications

Anna Tuominen

Tel. +358 40 584 6944
anna.tuominen@marimekko.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
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Marimekko is a Finnish lifestyle 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 2018, brand sales of the products worldwide amounted to EUR 248 million and the company's net sales were EUR 112 million. Roughly 150 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