2014-08-14 07:30:00 CEST
2014-08-14 07:30:07 CEST
REGULATED INFORMATION
Marimekko - Interim report (Q1 and Q3)
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 JANUARY - 30 JUNE 2014: EARNINGS IMPROVED IN THE SECOND QUARTER DESPITE DIFFICULT MARKET CONDITIONS
Marimekko Corporation, Interim Report, 14 August 2014 at 8.30 a.m.
In January-June 2014, the Marimekko Group's net sales fell by 6 percent
relative to the same period last year and amounted to EUR 41.3 million (43.7).
The decline in net sales is explained by a downturn in wholesale sales in all
market areas and a fall in retail sales in Finland. The decrease in wholesale
sales was partly due to a change in the rhythm of deliveries in the first
quarter of the year and the fact that a major part of the initial stock
deliveries to new retailer-owned stores in North America and Asia in 2013 took
place in the second quarter.
Despite the decline in net sales, operating result improved from the comparison
period. Operating profit for the second quarter was EUR 0.5 million (-1.2);
operating profit excluding nonrecurring items was EUR 0.5 million (0.3). In the
January-June period of 2014, operating result was EUR -1.2 million (-2.4), and
operating result excluding nonrecurring items was EUR -0.6 million (-1.0).
Reorganisations and cost savings implemented in Finland and the United States
in 2013 and this year contributed to the improved result.
The business climate for retail trade continued to be challenging especially in
Finland. Actions taken to streamline operations supported the first half of the
year. As is typical of the trade, net sales in the first half of the year were
low relative to operating expenses for seasonal reasons. Therefore, operating
profit will be primarily generated during the second half of the year.
During the second half of 2014, Marimekko will continue to invest in growth
while focusing on enhancing the operations of its stores, on improving the
overall profitability of its business, and on creating even more attractive
design and products.
Key indicators
4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2014 2013 , 2014 2013 , 2013
% %
--------------------------------------------------------------------------------
Net sales, EUR million 21.9 23.0 -5 41.3 43.7 -6 94.0
--------------------------------------------------------------------------------
International sales, EUR 9.9 10.3 -3 19.3 20.5 -6 41.8
million
--------------------------------------------------------------------------------
% of net sales 45 45 47 47 45
--------------------------------------------------------------------------------
EBITDA, EUR million 1.6 0.2 0.9 0.0 6.9
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 1.6 1.4 10 1.6 1.3 27 7.9
items, EUR million
--------------------------------------------------------------------------------
Operating result, EUR million 0.5 -1.2 145 -1.2 -2.4 50 0.1
--------------------------------------------------------------------------------
Operating result excluding 0.5 0.3 59 -0.6 -1.0 42 1.4
nonrecurring items, EUR
million
--------------------------------------------------------------------------------
Operating result margin, % 2.4 -5.0 -3.0 -5.6 0.1
--------------------------------------------------------------------------------
Operating result margin 2.4 1.4 -1.4 -2.2 1.4
excluding nonrecurring items,
%
--------------------------------------------------------------------------------
Result for the period, EUR 0.4 -1.1 134 -1.1 -2.2 48 -1.0
million
--------------------------------------------------------------------------------
Earnings per share, EUR 0.05 -0.13 138 -0.14 -0.27 48 -0.12
--------------------------------------------------------------------------------
Cash flow from operating 1.4 0.0 -0.8 -2.3 63 5.4
activities,
EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % -6.2 -12.1 -1.1
--------------------------------------------------------------------------------
Equity ratio, % 49.7 46.3 55.5
--------------------------------------------------------------------------------
Gross investments, EUR million 0.3 0.4 -11 0.8 1.1 -30 2.4
--------------------------------------------------------------------------------
Personnel at the end of the 485 559 -13 502
period
--------------------------------------------------------------------------------
outside Finland 114 109 5 124
--------------------------------------------------------------------------------
Brand sales*, EUR million 41.1 46.9 -12 81.3 91.2 -11 191.1
--------------------------------------------------------------------------------
outside Finland, EUR million 25.6 29.7 -14 50.5 57.8 -13 115.1
--------------------------------------------------------------------------------
proportion of international 62 63 62 63 60
sales, %
--------------------------------------------------------------------------------
Number of stores** 133 120 11 133
--------------------------------------------------------------------------------
* Estimated sales of Marimekko products at consumer prices. Brand sales are
calculated by adding together the company's own retail sales and the estimated
retail value of Marimekko products sold by other retailers. The estimate, based
on Marimekko's actual wholesale sales to these retailers, is unofficial and
does not include VAT. The key figure is not audited.
** Includes the company's own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm. The company's own retail
stores numbered 52 at the end of June 2014 (50). Information on changes is
available in the section Internationalisation and changes in the store network.
Mika Ihamuotila, President and CEO:"In spite of the difficult retail market conditions, we believe our net sales
will increase this year as well and that we will post a good profit, as we have
advised. I am pleased that, in recent years, we have built Marimekko into a
global company with more than 130 stores in Asia, Europe and America. Without
this work the company would be much more dependent on Finland, where the
outlook for the entire retail trade is now poor. I am also happy that we
invested particularly heavily in Asia in good time ahead of the challenging
economic trend in Finland and Europe, as growth in the consumer market is
strong in Asia. "Our net sales declined by six percent in the first half of the year, which was
due to a downturn in wholesale sales in all of the company's market areas,
combined with a fall in retail sales in Finland. While the relative share of
Marimekko's own retail sales has grown in recent years, both net sales and
profits accrue later in the year, as is the case for many international
companies in the sector. I am pleased that the action on streamlining that we
took last year and in spring 2014 supported the first half of the year and that
our operating result improved in spite of the decline in net sales. "The trend in our business operations during the first half of the year was as
we anticipated, and the relative trend in retail sales appears, as forecast, to
be levelling out after the start of the third quarter. In Finland, the trend
has actually been slightly better than was estimated. The openings of new
stores are focused particularly on the second half of the year. Our sales in
new markets have started up in a promising way, and I am very confident of
growth, particularly in the Asia-Pacific region. In Australia, our retail sales
have developed better than was forecast, and we will be opening our third
company-owned store there in the autumn. Wholesale in Japan was negatively
impacted by the appreciation of the euro against the yen and by an increase in
sales tax which came into effect in Japan in April 2014. This is forecast to
continue in the latter part of the year, but the long-term prospects are
nevertheless also positive in Japan. "There is a great deal of discussion in the sector about the impact of
digitisation on retail trade. I believe that it is an opportunity for a canny
pioneer, not a threat. My view is that Marimekko will benefit from the change
in consumers' purchasing behaviour, partly because we were on the move in time.
We began with building our international online trade in the United States, and
the importance of digitisation has gained in strength all the time in our
marketing strategy. The share of web-based trade in our total sales is
continuing to grow steadily, and especially in Finland the trend in online
sales has been positive. Although e-commerce partially cannibalises other
sales, we see enormous potential in it. Marimekko is a globally known brand,
but we still have a fairly small company-owned store network. Through
digitisation we can reach a much larger clientele, serving them profitably in
an entirely new way. I believe that the winners in this sector will combine
digitisation with an inspiring bricks-and-mortar experience in an adventurous
way. "We are moving into a new stage in our strategy and we are updating our
processes for design, product development and procurement in particular. Anna
Teurnell, who started her job as our Creative Director in mid-July, is
currently concentrating with her team on creating even more attractive design
and products and on getting them from the drawing board and into stores faster
and more smoothly. I see particularly great possibilities in fashion, for which
Marimekko once made its name widely. Due to the duration of the design process,
the updates will only begin to be seen in collections in autumn 2015. In the
latter half of the year, we will continue to invest in growth and to improve
the overall profitability of our business. Net sales and operating result for
the second half of the year will be boosted by significant one-off promotional
deliveries and by the royalty earnings from the Banana Republic Marimekko
Collection which was launched in May."
Financial guidance is unchanged
The forecast for the whole of 2014 remains unchanged: On the basis of general
market prospects, the company's growth targets and the agreed reorganisations,
the net sales of the Marimekko Group in 2014 are forecast to grow by 3-8
percent relative to 2013. Operating profit excluding nonrecurring items is
estimated at EUR 4-8 million.
Financial calendar 2014
The interim report for January-September will be issued on Thursday, 6 November
2014 at 8.30 a.m.
For additional information, contact:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 50 381 9751
MARIMEKKO CORPORATION
Corporate Communications
Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2013, brand sales
of Marimekko products worldwide amounted to approximately EUR 191 million and
the company's net sales were EUR 94 million. The number of Marimekko stores
totalled 133 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 JANUARY - 30 JUNE 2014
MARKET REVIEW
The general uncertainty in the world economy has continued and the economy of
many developing countries has slowed this year. The latest economic figures in
Europe indicate a continuing cautious recovery, but the economic climate in
Russia and the Ukrainian crisis overshadow budding growth. In the United
States, by contrast, economic growth in the second quarter was stronger than
forecast. In Finland, the current economic conditions are below average in all
main sectors, and the trend for the remainder of the year is forecast to be
very muted. In the trade sector, business conditions went back into decline. In
the confidence indicators of the Confederation of Finnish Industries, this was
particularly visible for the retail trade, in which sales expectations for the
remainder of the year have deteriorated markedly (Confederation of Finnish
Industries EK: Business Tendency Survey, August 2014 and Confidence Indicators,
July 2014). In the January-June period of 2014, the value of retail sales in
Finland fell by 0.4 percent and the volume of sales, which describes the real
growth is sales, fell by 0.7 percent (Statistics Finland: Turnover of Trade,
retail trade flash estimate, June 2014).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
Marimekko is experiencing a dynamic phase of internationalisation. In 2014, the
main thrust in expansion is on openings of retailer-owned Marimekko stores.
Also, the company will concentrate on enhancing the operations of company-owned
stores opened in recent years and improving their profitability. In February,
Marimekko announced that the aim was to open 15 to 25 new stores and
shop-in-shops this year. During the first half of the year, six stores were
opened, and 16 of the openings planned for the second half of the year have so
far been confirmed. Of these 22 new Marimekko stores, four are company-owned
stores, ten retailer-owned stores and eight shop-in-shops.
In the second quarter, a retailer-owned store was opened in Hong Kong as well
as shop-in-shops in the United States and Finland. Three shop-in-shops in Crate
and Barrel stores in the United States were closed down during the period under
review. In Norway, three retailer-owned stores included other brands in their
selection, and are no longer counted as Marimekko stores.
Number of stores & shop-in-shops* 30.6.2014 30.6.2013 31.12.2013
-------------------------------------------------------------------
Finland 58 53 56
-------------------------------------------------------------------
Company-owned stores 32 30 31
-------------------------------------------------------------------
Scandinavia 10 14 13
-------------------------------------------------------------------
Company-owned stores 8 8 8
-------------------------------------------------------------------
EMEA** 4 5 4
-------------------------------------------------------------------
Company-owned stores 4 4 4
-------------------------------------------------------------------
North America 21 18 23
-------------------------------------------------------------------
Company-owned stores 6 6 6
-------------------------------------------------------------------
Asia-Pacific 40 30 37
-------------------------------------------------------------------
Company-owned stores 2 2 2
-------------------------------------------------------------------
Total 133 120 133
-------------------------------------------------------------------
Company-owned stores 52 50 51
-------------------------------------------------------------------
* Includes the company's own retail stores, retailer-owned Marimekko stores and
shop-in-shops with an area exceeding 30 sqm.
** The market area of Central and Southern Europe previously referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area) as a result of the partnership initiated in the Middle East during the
period under review.
NET SALES
In the January-June period of 2014, the Group's net sales fell by 6 percent to
EUR 41,250 thousand (43,667). Net sales in Finland fell by 5 percent. With the
exception of Finland, retail sales grew in all market areas, which was partly
due to additional sales generated by stores opened in 2013. Comparable sales by
company-owned stores rose in particular in Scandinavia and in the rest of
Europe. A downturn in wholesale sales in all market areas was the biggest
factor in the decline in overall net sales. The decrease in wholesale sales was
partly due to a change in the rhythm of deliveries in the first quarter of the
year and the fact that a major part of the initial stock deliveries to new
retailer-owned stores in North America and Asia in 2013 took place in the
second quarter. Also, reduced levels compared to the previous year of
restocking deliveries to retailers exerted a drag on wholesale sales in
Finland. In addition, royalty income was at a lower level in the first half of
2014 than in the comparison period.
In the April-June period, the Group's net sales fell by 5 percent to EUR 21,874
thousand (22,957). Net sales in Finland decreased by 6 percent relative to the
same period last year. International sales fell by 3 percent.
Net sales by market area
(EUR 1,000) 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/201
2014 2013 , 2014 2013 , 3
% %
--------------------------------------------------------------------------------
Finland 11,957 12,696 -6 21,993 23,182 -5 52,159
--------------------------------------------------------------------------------
Retail sales 8,798 9,212 -4 15,003 15,508 -3 35,107
--------------------------------------------------------------------------------
Wholesale sales 3,065 3,376 -9 6,817 7,446 -8 16,491
--------------------------------------------------------------------------------
Royalties 94 108 -13 173 228 -24 562
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 1,976 1,720 15 3,883 3,599 8 8,152
--------------------------------------------------------------------------------
Retail sales 1,332 1,041 28 2,393 1,846 30 4,355
--------------------------------------------------------------------------------
Wholesale sales 644 679 -5 1,490 1,753 -15 3,796
--------------------------------------------------------------------------------
Royalties - - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 1,876 1,915* -2 3,739 3,922* -5 7,702*
--------------------------------------------------------------------------------
Retail sales 399 347 15 718 631 14 1,408
--------------------------------------------------------------------------------
Wholesale sales 1,460 1,544* -5 2,947 3,242* -9 6,194*
--------------------------------------------------------------------------------
Royalties 36 25 44 74 50 48 100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,040 2,404 -15 3,551 4,275 -17 8,534
--------------------------------------------------------------------------------
Retail sales 1,513 1,497 1 2,642 2,600 2 5,587
--------------------------------------------------------------------------------
Wholesale sales 464 749 -38 784 1,406 -44 2,511
--------------------------------------------------------------------------------
Royalties 64 159 -60 126 270 -53 436
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,025 4,220* -5 8,083 8,688* -7 17,460*
--------------------------------------------------------------------------------
Retail sales 501 504 -1 1,015 1,008 1 2,300
--------------------------------------------------------------------------------
Wholesale sales 3,501 3,716* -6 7,064 7,679* -8 15,158*
--------------------------------------------------------------------------------
Royalties 5 2 166 5 2 166 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 9,918 10,261 -3 19,257 20,485 -6 41,848
total
--------------------------------------------------------------------------------
Retail sales 3,745 3,388 11 6,768 6,084 11 13,651
--------------------------------------------------------------------------------
Wholesale sales 6,069 6,687 -9 12,285 14,080 -13 27,659
--------------------------------------------------------------------------------
Royalties 104 185 -44 204 321 -36 538
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 21,874 22,957 -5 41,250 43,667 -6 94,007
--------------------------------------------------------------------------------
Retail sales 12,542 12,600 0 21,770 21,592 1 48,757
--------------------------------------------------------------------------------
Wholesale sales 9,134 10,063 -9 19,102 21,525 -11 44,150
--------------------------------------------------------------------------------
Royalties 198 294 -33 377 550 -31 1,100
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
* Previously reported comparison figures for net sales by market area have been
adjusted because the market area of Central and Southern Europe referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area).
Finland
In the January-June period, sales in Finland fell by 5 percent to EUR 21,993
thousand (23,182). Retail sales fell by 3 percent. Comparable sales decreased
by 2 percent. Wholesale sales fell by 8 percent. A change in the rhythm of
deliveries during the first quarter in 2014 and reduced levels of restocking
deliveries to retailers compared to the previous year exerted a drag on
wholesale sales.
During the second quarter, retail sales fell by 4 percent; comparable sales by
company-owned stores fell by 2 percent. Wholesale sales declined by 9 percent.
Scandinavia
In Scandinavia, sales during the January-June period rose by 8 percent compared
to the same period last year, reaching EUR 3,883 thousand (3,599). Retail sales
rose by 30 percent. Retail sales were boosted by the two new Marimekko stores
opened in 2013 as well as by the extension to Sweden and Denmark of online
retailing. Comparable sales by company-owned stores grew by 11 percent. A
decrease of 15 percent in wholesale sales was affected by the change in the
delivery rhythm for the spring collection.
During the second quarter, retail sales rose by 28 percent; comparable sales by
company-owned stores grew by 20 percent. Wholesale sales fell by 5 percent.
EMEA
The market area of Central and Southern Europe previously referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area) as a result of the partnership initiated in the Middle East during the
period under review.
In this market area, net sales in the January-June period fell by 5 percent to
3,739 thousand (3,922). Retail sales rose by 14 percent. Wholesale sales fell
by 9 percent compared to the same period last year, affected by the change in
the delivery rhythm for the spring collection.
During the second quarter, retail sales rose by 15 percent. Wholesale sales
fell by 5 percent.
North America
In North America, net sales for the January-June period fell by 17 percent to
EUR 3,551 thousand (4,275). In terms of the sales currency (mostly the US
dollar), sales fell by about 13 percent. Retail sales in North America rose by
2 percent, whereas wholesale sales were 44 percent lower than in the comparison
period. The shop-in-shop partnership with the home furnishings retailer Crate
and Barrel ended in summer 2014, which showed up during the period under review
as a clear downturn in the number of products ordered.
During the second quarter, retail sales rose by 1 percent. Wholesale sales fell
by 38 percent.
Asia-Pacific
Net sales in the Asia-Pacific region fell in the January-June period by 7
percent to EUR 8,083 thousand (8,688). Wholesale sales fell by 8 percent,
affected by the change in the rhythm of deliveries for the spring collection
during the first quarter of the year. In addition, the rise of the euro against
the yen and an increase in sales tax in Japan in April 2014 had a negative
impact on Marimekko's wholesale sales in Japan. Retail sales (the Sydney and
Melbourne stores in Australia) grew by 1 percent. The weakening of the
Australian dollar significantly reduced the sales growth. In terms of the sales
currency (the Australian dollar), retail sales rose by 16 percent.
During the second quarter, euro-denominated retail sales fell by 1 percent. In
terms of the sales currency, retail sales in the stores in Australia rose by 9
percent. Wholesale sales fell by 6 percent.
FINANCIAL RESULT
The Group's financial result is typically weak during the first half of the
year because net sales are low relative to operating expenses for seasonal
reasons. In January-June 2014, the Group's operating result was EUR -1,229
thousand (-2,448). Operating result for the period under review includes a
nonrecurring expense of EUR 669 thousand connected with downsizing after the
consultative negotiations which ended in March 2014. Operating result for the
comparison period included EUR 1,485 thousand in nonrecurring expenses.
Operating result excluding nonrecurring items was EUR -560 thousand (-963).
Reorganisations and cost savings implemented in Finland and the United States
in 2013 and this year contributed to the improved result. Operating result was
weakened by a downturn in wholesale sales in all market areas as well as a
decline in comparable retail sales in Finland.
In April-June 2014, the Group's operating result was EUR 519 thousand (-1,158).
Operating result excluding nonrecurring items was EUR 519 thousand (326).
Marketing expenses during the period under review totalled EUR 2,254 thousand
(2,235), or 5 percent of the Group's net sales (5).
The Group's depreciation was EUR 2,158 thousand (2,491), representing 5 percent
of net sales (6).
Operating result margin for the January-June period of 2014 was -3.0 percent
(-5.6). In the April-June period, operating result margin was 2.4 percent
(-5.0).
Net financial expenses were EUR 115 thousand (343), or 0 percent of net sales
(1).
Result for the review period before taxes was EUR -1,344 thousand (-2,791).
Result after taxes was EUR -1,138 thousand (-2,203) and earnings per share were
EUR -0.14 (-0.27).
BALANCE SHEET
The consolidated balance sheet total as of 30 June 2014 was EUR 48,019 thousand
(55,708). Equity attributable to the equity holders of the parent company was
EUR 23,820 thousand (25,809), or EUR 2.94 per share (3.19).
Non-current assets at the end of June 2014 were EUR 19,268 thousand (23,730).
At the end of the period under review, net working capital was EUR 17,132
thousand (17,180). Inventories were EUR 18,583 thousand (18,963).
CASH FLOW AND FINANCING
In January-June 2014, cash flow from operating activities was EUR -840 thousand
(-2,254), or EUR -0.10 per share (-0.28). Cash flow before cash flow from
financing activities was EUR -1,625 thousand (-3,374).
In April-June 2014, cash flow from operating activities was EUR 1,379 thousand
(42), or EUR 0.17 per share (0.01). Cash flow before cash flow from financing
activities was EUR 1,059 thousand (-317).
The Group's financial liabilities at the end of the period under review stood
at EUR 14,550 thousand (18,293).
At the end of the period under review, the Group's cash and cash equivalents
amounted to EUR 2,160 thousand (3,292). In addition, the Group had unused
committed long- and short-term credit lines of EUR 14,899 thousand (11,066).
The Group's equity ratio at the end of the period was 49.7 percent (46.3).
Gearing was 52.0 percent (58.1).
INVESTMENTS
The Group's gross investments in January-June were EUR 785 thousand (1,120), or
2 percent of net sales (3). Most of the investments were devoted to building
store premises, IT systems, and other building expenses related to business
premises.
PERSONNEL
In January-June 2014, the number of employees averaged 478 (529). At the end of
the period, the Group had 485 (559) employees, of whom 114 (109) worked outside
Finland. The number of employees working outside Finland was broken down as
follows: Scandinavia 36 (34), EMEA 14 (14), North America 50 (51) and
Asia-Pacific 14 (10). The personnel at company-owned stores totalled 249 at the
end of the period (255).
CHANGES IN MANAGEMENT
Marimekko announced on 16 April 2014 the appointment of Anna Teurnell as
Creative Director and member of the company's Management Group as of 15 July
2014. She leads Marimekko's design team and is responsible for the company's
design strategy for fashion, bags and accessories as well as home products.
Minna Kemell-Kutvonen, previous Creative Director of Marimekko, continues in
the design team with responsibility for print design.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation's Annual General Meeting have been
reported in the stock exchange release of 23 April 2014 and in the interim
report of 8 May 2014.
MANAGEMENT GROUP'S LONG-TERM BONUS SYSTEM
Marimekko has a long-term bonus system in order to encourage its Management
Group and to enhance the Group's commitment to the company. The earning periods
of the current bonus system will terminate on 31 October 2014 and 28 February
2015. The Board of Directors of Marimekko Corporation decided on 7 May 2014 on
a subsequent bonus system with terms corresponding to those of the current
system. The purpose of the bonus system is to encourage the Management Group to
operate with a business mentality and to add to the company's value in the long
term in particular. The aim is to combine the owners' and the Management
Group's targets in order to increase the company's value and to elicit the
Management Group's commitment to the company in the span of several years.
The system is composed of two earnings periods, which are 8 May 2014 - 31
October 2017 and 8 May 2014 - 28 February 2018. The possible bonus for each
earnings period will be based on the total yield on Marimekko Corporation's
shares, including dividends. The potential bonus will be paid in cash in two
batches, one in autumn 2017 and the other in spring 2018. Earning the bonus
requires that the person still works for the company at the time of payment.
When receiving the bonus, the person in question commits themselves to using 50
percent of the net value of the bonus for acquiring the company's shares at
transaction price within six months of receiving the bonus. The shares acquired
with the bonus cannot be surrendered prior to two years following the time of
acquiring the shares. The annual maximum value of the bonus paid to a member of
the Management Group in the bonus system cannot exceed the approximate value of
fixed annual salary. Marimekko's Management Group comprised five persons at the
end of the review period.
REORGANISATIONS IN THE UNITED STATES
In February 2014, Marimekko reported reorganisations concerning its operations
in the United States. In respect of these, negotiations on the termination of
the lease for the Beverly Hills store and on the possible relocation of the
store are still in progress. The previously implemented actions on the country
organisation as well as the store closure or relocation are aimed at a total of
about EUR 1.0 million in annual savings.
EXPANSION TO THE MIDDLE EAST
During the second quarter, Marimekko announced the signing of a partnership
contract with BinHendi Enterprises, with the aim of opening a total of eight
Marimekko stores in the Middle East by the end of 2019. The first store will
open in Dubai in the fourth quarter of 2014 and the next two stores most likely
in 2015. It is intended to extend operations in the years ahead to include
Kuwait, Qatar and Saudi Arabia.
As a result of the partnership, the market area of Central and Southern Europe
previously referred to in Marimekko's financial disclosures has changed to EMEA
(Europe and Middle East Area) starting from this interim report.
SHARE AND SHAREHOLDERS
Share capital and number of shares
At the end of June 2014, the company's fully paid-up share capital, as recorded
in the Trade Register, amounted to EUR 8,040,000 and the number of shares
totalled 8,089,610.
Shareholdings
According to the book-entry register, Marimekko had 7,222 shareholders at the
end of June 2014 (7,528). Of the shares, 21.8 percent were owned by
nominee-registered or non-Finnish holders (21.1). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President and CEO of the company was 1,328,598 (1,338,930), representing 16.4
percent of the number and voting rights of the company's shares (16.6).
The largest shareholders according to the book-entry register on 30 June 2014
Number of shares Percentage of shares
and votes and votes
--------------------------------------------------------------------------------
1. Muotitila Ltd 1,297,700 16.04
--------------------------------------------------------------------------------
2. Semerca Investments SA 850,377 10.51
--------------------------------------------------------------------------------
3. Varma Mutual Employment Pension 385,920 4.77
Insurance Company
--------------------------------------------------------------------------------
4. ODIN Finland 344,251 4.26
--------------------------------------------------------------------------------
5. Veritas Pension Insurance Company 220,000 2.72
--------------------------------------------------------------------------------
6. Ilmarinen Mutual Pension 215,419 2.66
Insurance Company
--------------------------------------------------------------------------------
7. Keva 197,754 2.44
--------------------------------------------------------------------------------
8. OP-Finland Small Firm Fund 151,197 1.87
--------------------------------------------------------------------------------
9. Mutual Fund Tapiola Finland 136,395 1.69
--------------------------------------------------------------------------------
10. Mutual Fund Nordea Finland Small 111,638 1.38
Cap
--------------------------------------------------------------------------------
Total 3,910,651 48.34
--------------------------------------------------------------------------------
Nominee-registered and 1,761,354 21.77
non-Finnish holders
--------------------------------------------------------------------------------
Others 2,417,605 29.89
--------------------------------------------------------------------------------
Total 8,089,610 100.00
--------------------------------------------------------------------------------
Share trading and the company's market capitalisation
In January-June 2014, a total of 408,548 Marimekko shares were traded,
representing 5.1 percent of the shares outstanding. The total value of
Marimekko's share turnover was EUR 4,038,386. The lowest price of the Marimekko
share was EUR 9.13, the highest was EUR 10.43 and the average price was EUR
9.88. At the end of June, the closing price of the share was EUR 9.71. The
company's market capitalisation on 30 June 2014 was EUR 78,550,113
(82,918,503).
Authorisations
At the end of the period, the Board of Directors had no valid authorisations to
carry out share issues or issue convertible bonds or bonds with warrants, or to
acquire or surrender Marimekko shares. The validity of the authorisation
granted by the Annual General Meeting of 17 April 2012 to Marimekko's Board of
Directors to decide on a directed offering of shares to the personnel, in
deviation from the shareholders' pre-emptive right, in one or more offerings
expired on 17 April 2014.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The key strategic risks for the near future are associated with overall
economic trends and the consequent uncertainty in the operating environment,
the management of the company's expansion as well as the digitisation of
retail.
Marimekko products are sold in approximately 40 countries. The key markets are
North America, Northern Europe and the Asia-Pacific region. There are Marimekko
stores in 15 countries. In addition to Finland, Marimekko has company-owned
stores in other Nordic countries, Germany, the United Kingdom, the United
States and Australia. The global economic cycle and factors of uncertainty
affect consumers' purchasing behaviour and buying power in all of the company's
market areas. The downturn in economic conditions, which started from the
severe problems of the international financial markets, continues to dampen the
prospects for retail as well as Marimekko's prospects for growth and earnings.
Marimekko is undergoing a phase of extensive internationalisation and change.
The distribution of products is being expanded in all key market areas. Growth
is based on opening retailer-owned Marimekko stores and shop-in-shops as well
as on setting up company-owned stores and expanding ecommerce. In recent years,
expansion has called for larger or brand-new country organisations, which
exerts a drag on the cost-effectiveness of the company. Expanding the network
of company-owned stores and building international ecommerce have increased the
company's investments, lease liabilities of store premises, inventories, and
the company's fixed costs. It also follows from this that a larger portion of
Group net sales comes from sales by the company's own retail stores, which has
increased the seasonality of the business as well as dependence on the success
of new company-owned stores and has shifted the bulk of net sales and profit
accumulation to the last quarter, thus having a negative impact on
profitability in the first half of the year. Furthermore, partnerships and the
choice of partners in the company's key market areas also involve risks.
The company's ability to design, develop and commercialise new products that
meet consumers' expectations while maintaining profitable in-house production,
sustainable sourcing and effective logistics has an impact on the company's
sales and profitability. Moreover, intellectual property rights play a vital
role in the company's success and the company's ability to manage these rights
may have an impact on the company's value.
The company's operational risks prominently include those related to the
management and success of expansion projects, the operational reliability of
procurement and logistics processes, and changes in costs of raw materials and
other procurement items. As a result of new products, the share of in-house
production has diminished, and the company uses subcontractors for its
manufacturing to an increasing extent. Therefore, the company's dependence on
the supply chain has increased. Any delays or disturbances in supply or
fluctuations in the quality of products may have a temporary harmful impact on
business. As the operations are being expanded and diversified, risks related
to the management of inventories also increase.
Among the company's economic risks, those related to the structure of sales,
increased investments, price trends for factors of production, changes in cost
structure, increased operational costs, customers' liquidity, and changes in
exchange rates (particularly US dollar, Swedish krona and Australian dollar)
may have an impact on the company's financial status.
MARKET OUTLOOK AND GROWTH TARGETS IN 2014
Overall uncertainty in the global economy is forecast to continue, and this may
impact consumers' purchasing behaviour in all of Marimekko's market areas.
The Asia-Pacific region was the driving force in Marimekko's sales growth in
2013 and the company still sees growing demand for its products in this market
area. There are 27 retailer-owned Marimekko stores in Japan and the company's
wholesale sales to Japan have been growing for several successive years.
However, the rise of the euro against the yen and an increase in sales tax in
Japan in April 2014 had a negative impact on Marimekko's wholesale sales in
Japan during the first half of the year, and this is estimated to continue
during the second half of the year.
The weak state of the retail market in Finland and the negative trend in
comparable sales by Marimekko's company-owned Finnish stores which started in
the second half of 2013 have continued as forecast during the current year. The
relative trend in retail sales is expected to improve starting from the
beginning of the third quarter due to the low level of sales in the comparison
period. Low confidence in the retail trade trend and consumers' weaker
purchasing power are reflected in retailers' caution as they replenish their
stocks during the remainder of the year as well.
Wholesale sales by Marimekko in the second half of the year will be boosted by
considerable, nonrecurring promotional deliveries. The Banana Republic
Marimekko Collection launched in May 2014 will boost Marimekko's royalty
earnings in the second half of 2014.
In 2014, the main thrust in expansion is on openings of retailer-owned
Marimekko stores. The number of new stores has so far been confirmed as 22.
Four of these are company-owned stores. The majority of the stores are opened
in the second half of the year; in January-June, six stores were opened.
Furthermore, the company will concentrate on developing the operations of
company-owned stores opened in recent years and on improving the overall
profitability of business.
The planned total investments for 2014 of the Marimekko Group are estimated at
roughly EUR 3 million. The majority of investments will be directed at building
new store premises and purchasing new furniture.
FINANCIAL GUIDANCE
The forecast for the whole of 2014 remains unchanged: On the basis of general
market prospects, the company's growth targets and the agreed reorganisations,
the net sales of the Marimekko Group in 2014 are forecast to grow by 3-8
percent relative to 2013. Operating profit excluding nonrecurring items is
estimated at EUR 4-8 million.
Helsinki, 14 August 2014
MARIMEKKO CORPORATION
Board of Directors
INTERIM REPORT 1 JANUARY - 30 JUNE 2014, TABLE SECTION
The information presented in the interim report has not been audited. There may
be differences in totals due to rounding to the nearest thousand euros.
APPENDICES
Accounting principles
Formulas for key figures
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Segment information
Net sales by market area
Net sales by product line
Quarterly trend in net sales and earnings
ACCOUNTING PRINCIPLES
This interim report was prepared in accordance with IAS 34. The same accounting
principles were applied as in the 2013 financial statements, although at the
start of the financial year the company adopted certain new and amended IFRS
standards as described in the financial statements for 2013. The adoption of
new and updated standards has had no effect on the figures stated during the
period under review.
FORMULAS FOR KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial year)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 June
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial year)
Return on investment (ROI), %:
(Profit before taxes + interest and other financial expenses) X 100 / (Balance
sheet total - non-interest-bearing liabilities (average for the financial
year))
Equity ratio, %:
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
Net working capital:
Inventories + trade and other receivables + current tax assets - trade and
other payables - current tax liability
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 4-6/20 4-6/20 1-6/201 1-6/201 1-12/20
14 13 4 3 13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 21,874 22,957 41,250 43,667 94,007
--------------------------------------------------------------------------------
Other operating income 56 56 111 112 246
--------------------------------------------------------------------------------
Increase or decrease in inventories 25 552 731 968 527
of completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -7,423 -7,897 -15,184 -16,487 -33,547
--------------------------------------------------------------------------------
Employee benefit expenses -6,392 -8,568 -13,169 -14,761 -27,059
--------------------------------------------------------------------------------
Depreciation and impairments -1,076 -1,386 -2,158 -2,491 -6,772
--------------------------------------------------------------------------------
Other operating expenses -6,546 -6,873 -12,809 -13,456 -27,320
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT 519 -1,158 -1,229 -2,448 82
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 126 -26 249 46 67
--------------------------------------------------------------------------------
Financial expenses -169 -351 -364 -389 -953
--------------------------------------------------------------------------------
-43 -377 -115 -343 -886
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 476 -1,536 -1,344 -2,791 -804
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -116 462 206 588 -151
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 360 -1,074 -1,138 -2,203 -955
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 360 -1,074 -1,138 -2,203 -955
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.05 -0.13 -0.14 -0.27 -0.12
calculated on the result
attributable to equity holders of
the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 4-6/20 4-6/20 1-6/20 1-6/20 1-12/2
14 13 14 13 013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 360 -1,074 -1,138 -2,203 -955
--------------------------------------------------------------------------------
Items that could be reclassified to
profit or loss at a future point in
time
--------------------------------------------------------------------------------
Change in translation difference -13 40 -9 38 -30
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 347 -1,034 -1,147 -2,165 -985
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 347 -1,034 -1,147 -2,165 -985
holders of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.6.2014 30.6.2013 31.12.2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,634 2,382 1,976
--------------------------------------------------------------------------------
Tangible assets* 17,401 20,887 18,245
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16 16
--------------------------------------------------------------------------------
Deferred tax assets 217 446 -
--------------------------------------------------------------------------------
19,268 23,730 20,237
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,583 18,963 18,106
--------------------------------------------------------------------------------
Trade and other receivables 7,739 9,254 6,622
--------------------------------------------------------------------------------
Current tax assets 269 469 682
--------------------------------------------------------------------------------
Cash and cash equivalents 2,160 3,292 3,001
--------------------------------------------------------------------------------
28,751 31,978 28,411
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 48,019 55,708 48,648
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040 8,040
--------------------------------------------------------------------------------
Invested non-restricted equity reserve 502 502 502
--------------------------------------------------------------------------------
Translation differences -47 30 -38
--------------------------------------------------------------------------------
Retained earnings 15,325 17,237 18,485
--------------------------------------------------------------------------------
Shareholders' equity, total 23,820 25,809 26,989
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities - - 11
--------------------------------------------------------------------------------
Provisions 190 101 101
--------------------------------------------------------------------------------
Financial liabilities 8,101 8,934 8,234
--------------------------------------------------------------------------------
Finance lease liabilities 3,297 3,288 3,252
--------------------------------------------------------------------------------
11,588 12,323 11,598
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 9,459 11,506 9,989
--------------------------------------------------------------------------------
Financial liabilities 3,000 6,000 -
--------------------------------------------------------------------------------
Finance lease liabilities 152 71 72
--------------------------------------------------------------------------------
12,611 17,576 10,061
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 24,199 29,899 21,659
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 48,019 55,708 48,648
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* At the end of the review period, tangible assets included assets acquired
under finance lease agreements amounting to EUR 3,359 thousand (30 June 2013:
3,287; 31 December 2013: 3,229).
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-6/201 1-6/201 1-12/201 4 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -1,138 -2,203 -955
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 2,158 2,491 6,772
--------------------------------------------------------------------------------
Other non-cash transactions 89 101 101
--------------------------------------------------------------------------------
Financial income and expenses 115 343 886
--------------------------------------------------------------------------------
Taxes -206 -588 151
--------------------------------------------------------------------------------
Cash flow before change in working capital 1,018 144 6,954
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -1,474 -1,579 -1,059
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -446 -864 666
non-interest-bearing trade receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -477 -15 396
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -551 -700 -2,121
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial -456 -1,435 5,895
items and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial -139 -396 -961
expenses
--------------------------------------------------------------------------------
Interest received 23 46 67
--------------------------------------------------------------------------------
Taxes paid -269 -469 422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES -840 -2,254 5,424
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -785 -1,120 -2,353
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -785 -1,120 -2,353
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term loans drawn 3,000 6,000 -
--------------------------------------------------------------------------------
Long-term loans paid -133 -383 -1,083
--------------------------------------------------------------------------------
Finance lease liabilities paid -61 -35 -69
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES 784 3,560 -3,175
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -841 186 -105
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 3,001 3,106 3,106
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 2,160 3,292 3,001
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Invested Translation Retained Shareholde
capita non-restricted differences earnings rs'
l equity reserve equity,
total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
1 January 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -2,203 -2,203
period
--------------------------------------------------------------------------------
Translation 38 38
differences
--------------------------------------------------------------------------------
Total 38 -2,203 -2,165
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 30 17,237 25,809
equity
30 June 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -38 18,485 26,989
equity
1 January 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -1,138 -1,138
period
--------------------------------------------------------------------------------
Translation -9 -9
differences
--------------------------------------------------------------------------------
Total -9 -1,138 -1,147
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -47 15,325 23,820
equity
30 June 2014
--------------------------------------------------------------------------------
KEY FIGURES
1-6/2014 1-6/2013 Change, % 1-12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.14 -0.27 48 -0.12
--------------------------------------------------------------------------------
Equity per share, EUR 2.94 3.19 -8 3.34
--------------------------------------------------------------------------------
Return on equity (ROE), % -9.0 -15.8 -3.4
--------------------------------------------------------------------------------
Return on investment (ROI), % -6.2 -12.1 -1.1
--------------------------------------------------------------------------------
Equity ratio, % 49.7 46.3 55.5
--------------------------------------------------------------------------------
Gearing, % 52.0 58.1 31.7
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 785* 1,120 -30 2,353
--------------------------------------------------------------------------------
Gross investments, % of net sales 2 3 3
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 35,363 40,425 -13 37,365
--------------------------------------------------------------------------------
Average personnel 478 529 -10 526
--------------------------------------------------------------------------------
Personnel at the end of the period 485 559 -13 502
--------------------------------------------------------------------------------
Number of shares at the end of the 8,089,610 8,089,610 8,089,610
period
--------------------------------------------------------------------------------
Number of shares outstanding, 8,089,610 8,089,610 8,089,610
average
--------------------------------------------------------------------------------
*Does not include machinery and equipment acquired under finance lease
agreements (EUR 187 thousand).
SEGMENT INFORMATION
(EUR 1,000) 1-6/2014 1-6/2013 Change, % 1-12/2013
------------------------------------------------------------
------------------------------------------------------------
Marimekko business
------------------------------------------------------------
Net sales 41,250 43,667 -6 94,007
------------------------------------------------------------
Operating result -1,229 -2,448 50 82
------------------------------------------------------------
Assets 48,019 55,708 -14 48,648
------------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/201
2014 2013 , 2014 2013 , 3
% %
--------------------------------------------------------------------------------
Finland 11,957 12,696 -6 21,993 23,182 -5 52,159
--------------------------------------------------------------------------------
Retail sales 8,798 9,212 -4 15,003 15,508 -3 35,107
--------------------------------------------------------------------------------
Wholesale sales 3,065 3,376 -9 6,817 7,446 -8 16,491
--------------------------------------------------------------------------------
Royalties 94 108 -13 173 228 -24 562
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 1,976 1,720 15 3,883 3,599 8 8,152
--------------------------------------------------------------------------------
Retail sales 1,332 1,041 28 2,393 1,846 30 4,355
--------------------------------------------------------------------------------
Wholesale sales 644 679 -5 1,490 1,753 -15 3,796
--------------------------------------------------------------------------------
Royalties - - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA* 1,876 1,915* -2 3,739 3,922* -5 7,702**
* *
--------------------------------------------------------------------------------
Retail sales 399 347 15 718 631 14 1,408
--------------------------------------------------------------------------------
Wholesale sales 1,460 1,544* -5 2,947 3,242* -9 6,194**
* *
--------------------------------------------------------------------------------
Royalties 36 25 44 74 50 48 100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,040 2,404 -15 3,551 4,275 -17 8,534
--------------------------------------------------------------------------------
Retail sales 1,513 1,497 1 2,642 2,600 2 5,587
--------------------------------------------------------------------------------
Wholesale sales 464 749 -38 784 1,406 -44 2,511
--------------------------------------------------------------------------------
Royalties 64 159 -60 126 270 -53 436
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,025 4,220* -5 8,083 8,688* -7 17,460**
* *
--------------------------------------------------------------------------------
Retail sales 501 504 -1 1,015 1,008 1 2,300
--------------------------------------------------------------------------------
Wholesale sales 3,501 3,716* -6 7,064 7,679* -8 15,158**
* *
--------------------------------------------------------------------------------
Royalties 5 2 166 5 2 166 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 9,918 10,261 -3 19,257 20,485 -6 41,848
total
--------------------------------------------------------------------------------
Retail sales 3,745 3,388 11 6,768 6,084 11 13,651
--------------------------------------------------------------------------------
Wholesale sales 6,069 6,687 -9 12,285 14,080 -13 27,659
--------------------------------------------------------------------------------
Royalties 104 185 -44 204 321 -36 538
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 21,874 22,957 -5 41,250 43,667 -6 94,007
--------------------------------------------------------------------------------
Retail sales 12,542 12,600 0 21,770 21,592 1 48,757
--------------------------------------------------------------------------------
Wholesale sales 9,134 10,063 -9 19,102 21,525 -11 44,150
--------------------------------------------------------------------------------
Royalties 198 294 -33 377 550 -31 1,100
--------------------------------------------------------------------------------
* The market area of Central and Southern Europe previously referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area) as a result of the partnership initiated in the Middle East during the
period under review.
** Previously reported comparison figures for net sales by market area have
been adjusted due to the above-mentioned change in market areas.
NET SALES BY PRODUCT LINE
(EUR 1,000) 4-6/ 4-6/ Change, 1-6/ 1-6/ Change, 1-12/
2014 2013 % 2014 2013 % 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fashion 8,608 8,300 4 16,635 16,325 2 33,979
----------------------------------------------------------------------------
Home 8,459 9,235 -8 16,020 17,422 -8 38,577
----------------------------------------------------------------------------
Bags & accessories 4,807 5,422 -11 8,596 9,920 -13 21,452
----------------------------------------------------------------------------
TOTAL 21,874 22,957 -5 41,250 43,667 -6 94,007
----------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 4-6/2014 1-3/2014 10-12/2013 7-9/2013
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 21,874 19,376 25,465 24,875
-----------------------------------------------------------------
Operating result 519 -1,748 -565 3,093
-----------------------------------------------------------------
Earnings per share, EUR 0.05 -0.19 -0.07 0.22
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 4-6/2013 1-3/2013 10-12/2012 7-9/2012
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 22,957 20,710 25,748 24,214
-----------------------------------------------------------------
Operating result -1,158 -1,290 13 3,486
-----------------------------------------------------------------
Earnings per share, EUR -0.13 -0.14 -0.04 0.31
-----------------------------------------------------------------
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