2016-11-03 07:30:02 CET
2016-11-03 07:30:02 CET
REGULATED INFORMATION
Marimekko - Interim report (Q1 and Q3)
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January - 30 September 2016: A positive trend in sales and operational streamlining boosted comparable operating profit in the third quarter
Marimekko Corporation, Interim report, 3 November 2016 at 8.30 a.m.
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January - 30 September 2016: A
positive trend in sales and operational streamlining boosted comparable
operating profit in the third quarter
January-September in brief
-- Net sales grew by 5 percent to EUR 71.4 million (1-9/2015: 68.2). Net sales
at comparable exchange rates grew by 4 percent.
-- Net sales were supported by a positive trend in retail sales in Finland and
Australia as well as by growth in wholesale sales in Finland, EMEA and the
Asia-Pacific region. Growth in wholesale sales in Finland was due to
nonrecurring promotional deliveries.
-- Operating profit grew markedly relative to the same period last year and
was EUR 3.5 million (0.2), which includes a restructuring cost of EUR 0.8
million. Comparable operating profit was EUR 4.3 million (0.2).
-- Operating profit was boosted by a lower cost level as well as growth in
retail and wholesale sales in Finland. Growth in wholesale sales was due to
nonrecurring promotional deliveries in Q3.
The third quarter in brief
-- Net sales grew by 10 percent relative to the same period last year and were
EUR 26.9 million (Q3/2015: 24.6).
-- Net sales were supported by strong retail sales and nonrecurring
promotional deliveries in Finland as well as by a positive trend in
wholesale sales in EMEA.
-- Comparable operating profit grew relative to the same period last year and
was EUR 3.7 million (1.2).
-- Operating profit was boosted by a lower cost level, nonrecurring
promotional wholesale deliveries in Finland, and by growth in wholesale
sales in EMEA. Operating profit was also improved by earlier timing of
wholesale deliveries compared with the previous year.
-- In the comparison period, operating profit was improved by royalty receipts
from North America.
Financial guidance for 2016
The Marimekko Group's net sales for 2016 are forecast to be at the same level
as in 2015. Operating profit excluding restructuring costs is expected to be
higher than in the previous year.
Tiina Alahuhta-Kasko, President & CEO:
"For Marimekko, the current year is a year of building and improving
efficiency. The third quarter of the year was even somewhat better than
expected. This was due to strong wholesale sales in EMEA as well as earlier
timing of wholesale deliveries compared with the previous year. In the
January-September period of 2016, our net sales grew by 5 percent; our
operating profit grew to EUR 3.5 million and our comparable operating profit
was EUR 4.3 million (0.2). Our profitability was improved by lower cost levels
combined with growth in retail and wholesale sales in Finland. Growth in
wholesale sales was due to nonrecurring promotional deliveries in Q3. Our
operating profit was weakened by discount-driven retail sales, which are
typical in a price-sensitive market situation. Also, in the corresponding
period of 2015, operating profit was boosted by royalty receipts from North
America. I am pleased that we have succeeded in increasing both our net sales
and our operating profit in challenging global market conditions.
"This year we have continued our international growth. Of the twelve new
Marimekko stores opened by the end of September, nine are located in the
important Asia-Pacific region. Our retail trade in Australia has developed
well, and we will open our fifth company-owned store there in November.
"As we have previously reported, we are continuing to revamp our ready-to-wear
collections and to optimise our assortment for different markets and
distribution channels. The first revamped ready-to-wear collection hit the
market in spring this year. On the basis of analysis of the collection
structure, we will in the future fine-tune our price position in particular to
correspond more closely to price-sensitive market conditions.
"At the beginning of October, we attended Paris Fashion Week for the third
time. We presented our spring/summer 2017 ready-to-wear collection to the
international fashion and lifestyle media, influencers and buyers, and once
again we received a positive reception. Appearing at Paris Fashion Week helps
us in the long-term cultivation of our international brand recognition. One
indication of the interest stirred by our revamping work is that Marimekko’s
ready-to-wear collection designed under Creative Director Anna Teurnell was
awarded as the collection of the year at the Finnish Elle Style Awards 2016.
"In September, we started up the new washing machine at our textile printing
factory in Helsinki, where we print about a million metres of fabric per year.
Investments in our own printing factory are important because, as a unique
player in our sector in Finland, we must ensure that the factory provides us
with an ongoing and flexible ability to innovate. Consumers around the world
are increasingly interested in knowing where, how and by whom their products
have been made. The in-house printing factory helps to underpin our expertise
in print design as a strong factor of differentiation and as an international
competitive advantage.
"As is typical in our industry, the proportion of retail sales and particularly
holiday sales in our net sales for the last quarter of the year is
considerable. Towards the end of the year, we concentrate on securing holiday
sales. We also continue with determination the long-term development of
Marimekko. I am confident that our efforts to optimise our product range and to
develop our procurement and the multichannel customer experience, combined with
our streamlined operations, will further strengthen Marimekko."
Key figures
The guidelines on Alternative Performance Measures to be used by listed
companies in their financial reporting, published by the European Securities
and Markets Authority (ESMA), entered into force on 3 July 2016. As of the
first quarter of 2016, Marimekko Corporation uses the term "comparable" instead
of the previously used term "excluding nonrecurring items". In addition, the
heading brand sales is given as an alternative non-IFRS key figure.
The items affecting comparability involve items not influencing ordinary
business operations or cash flow, which are items adjusted for comparability if
they arise from write-downs of assets, sales of assets, expenses of terminating
business operations, reorganisation expenses, changes in legislation, or legal
actions.
Brand sales are calculated by adding together the company's own retail net
sales and the estimated retail value of Marimekko products sold by other
retailers. The estimate, based on Marimekko’s realised wholesale sales and
royalty income, is unofficial and does not include VAT.
EUR million 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 2015
2016 2015 % 2016 2015 %
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Net sales 26.9 24.6 10 71.4 68.2 5 95.7
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International sales 11.3 10.6 6 32.2 31.4 2 43.0
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% of net sales 42 43 - 45 46 - 45
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EBITDA 4.8 2.4 96 6.7 3.5 90 6.1
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Comparable EBITDA 4.8 2.4 96 7.6 3.5 114 6.1
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Operating result 3.7 1.2 199 3.5 0.2 - 1.5
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Comparable operating result 3.7 1.2 199 4.3 0.2 - 1.5
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Operating result margin, % 13.6 5.0 - 4.9 0.3 - 1.6
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Comparable operating result 13.6 5.0 - 6.1 0.3 - 1.6
margin, %
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Result for the period 2.8 0.6 - 2.5 -0.4 - 0.8
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Earnings per share, EUR 0.34 0.08 - 0.31 -0.05 - 0.10
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Cash flow from operating 1.4 0.7 99 -1.6 0.7 - 6.3
activities
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Return on investment - - - 12.7 5.4 - 4.5
(ROI)*, %
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Equity ratio, % - - - 55.2 54.7 - 59.0
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Gross investments 1.0 0.9 8 2.3 1.7 38 3.6
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Personnel at the end of the - - - 416 444 -6 476
period
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outside Finland - - - 111 114 -3 126
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Brand sales** 49.6 46.6 6 145.6 129.7 12 176.7
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outside Finland 29.5 28.1 5 94.7 79.9 19 105.4
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proportion of international 59 60 - 65 62 - 60
sales, %
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Number of stores*** - - - 159 148 11 153
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The change percentages in the table were calculated on exact figures before the
amounts were rounded to millions of euros.
* ROI and ROE are reported as 12-month rolling values as of the first review
period of 2016. Figures for the comparison periods have been restated
accordingly. This change improves comparability between review periods.
** 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 realised wholesale sales and royalty income, is unofficial and
does not include VAT. The key figure is not audited. The calculation method for
2015 figures has been restated to correspond to the licensing agreement terms.
*** 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 54 at the end of September 2016 (53). Information on changes is
available in the section Changes in the Store Network.
Reconciliation of key figures to IFRS
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 2015
2016 2015 2016 2015
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Items affecting comparability
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Restructuring (employee benefit expenses) - - -0.8 - -
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Restructuring (other operating expenses) - - 0.0 - -
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Items affecting comparability in operating result - - -0.8 - -
-------------------------------------------------------------------------------
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EBITDA 4.8 2.4 6.7 3.5 6.1
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Items affecting comparability - - -0.8 - -
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Comparable EBITDA 4.8 2.4 7.6 3.5 6.1
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Operating result 3.7 1.2 3.5 0.2 1.5
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Items affecting comparability in operating result - - -0.8 - -
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Comparable operating result 3.7 1.2 4.3 0.2 1.5
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Net sales 26.9 24.6 71.4 68.2 95.7
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Operating result margin, % 13.6 5.0 4.9 0.3 1.6
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Comparable operating result margin, % 13.6 5.0 6.1 0.3 1.6
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Financial calendar for 2017
Marimekko Corporation's financial statements bulletin for 2016 will be issued
on Thursday 9 February 2017 at 8.30 a.m. The financial statements for 2016 will
be published in week 11 at the latest. The interim reports and the half-year
financial report for 2017 will be issued as follows: January-March on Wednesday
10 May 2017 at 8.30 a.m., January-June on Thursday 10 August 2017 at 8.30 a.m.,
and January-September on Thursday 2 November 2017 at 8.30 a.m.
The Annual General Meeting is planned to be held on Thursday 6 April 2017 at
2.00 p.m.
Further information:
Tiina Alahuhta-Kasko, President & CEO, tel. +358 9 758 71
Elina Aalto, Chief Financial Officer, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January - 30 September 2016
OPERATING ENVIRONMENT
Growth in global trade has slowed due to weakened demand in Asia, and the
situation in the UK is expected to decelerate growth even further. Growth
continues in the EU countries, although the Brexit vote outcome increases
uncertainty. All in all, there is considerable uncertainty about the trend in
the global economy due to the unpredictability of the political situation, for
example.
The trend in the Finnish economy is more upbeat than before. In retail trade,
however, the current situation is generally weaker than the average. In
October, sales volume has remained almost at its previous level, and no
substantial changes are expected in the next few months. Retail trade
confidence in Finland reached its long-term average in October, but it is still
lower than the EU average. Consumer confidence was slightly above the long-term
average in October.
(Confederation of Finnish Industries EK: Economic Review, 4 October 2016;
Confidence Indicators, October 2016; Business Tendency Survey, October 2016.
Statistics Finland: Consumer Survey, October 2016.)
In the January-September period, the value of retail sales in Finland increased
by 0.7 percent relative to the same period last year and the volume of sales,
which measures real growth, rose by 1.8 percent. (Statistics Finland: Turnover
of Trade, retail trade flash estimate, September 2016).
CHANGES IN THE STORE NETWORK
In 2016, the main thrust in expanding the Marimekko store network continues to
be on openings of retailer-owned Marimekko stores. The goal is to open around
10-20 new Marimekko stores and shop-in-shops. Of these, 1-2 would be
company-owned stores.
In the July-September period of 2016, two shop-in-shops were opened, one in
Copenhagen and the other in Bangkok.
During the review period, a Marimekko-owned store was closed in Täby, Sweden.
In addition, the shop-in-shop in the Magasin department store in Lyngby,
Denmark, was downsized to less than 30 square metres, which is why it no longer
is included in the total number of Marimekko stores.
Number of stores and shop-in-shops* 30.9.2016 30.9.2015 31.12.2015
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Finland 63 61 62
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Company-owned stores 25 24 25
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Company-owned outlet stores 12 11 11
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Retailer-owned stores 16 16 16
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Retailer-owned shop-in-shops 10 10 10
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Scandinavia 10 11 11
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Company-owned stores 7 8 8
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Company-owned outlet stores - - -
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Retailer-owned stores - - -
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Retailer-owned shop-in-shops 3 3 3
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EMEA 3 4 4
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Company-owned stores 1 2 2
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Company-owned outlet stores - - -
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Retailer-owned stores 2 2 2
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Retailer-owned shop-in-shops - - -
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North America 23 23 24
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Company-owned stores 4 4 4
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Company-owned outlet stores 1 1 1
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Retailer-owned stores 1 2 2
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Retailer-owned shop-in-shops 17 16 17
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Asia-Pacific 60 49 52
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Company-owned stores 4 3 4
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Company-owned outlet stores - - -
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Retailer-owned stores 47 42 44
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Retailer-owned shop-in-shops 9 4 4
---------------------------------------------------------------------
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Total 159 148 153
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Company-owned stores 41 41 43
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Company-owned outlet stores 13 12 12
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Retailer-owned stores 66 62 64
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Retailer-owned shop-in-shops 39 33 34
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* Includes shop-in-shops with an area exceeding 30 sqm.
NET SALES
Net sales in January-September
In the January-September period, the Group's net sales grew by 5 percent and
were EUR 71,440 thousand (68,171). Net sales in Finland rose by 7 percent and
international sales by 2 percent relative to the same period last year. In
retail sales, growth was 5 percent and in wholesale sales 6 percent. Retail
sales were supported by an upward trend in sales in Finland and Australia.
Growth in wholesale sales was due to nonrecurring promotional deliveries in
Finland in Q3 as well as a positive trend in sales in EMEA and the Asia-Pacific
region. Net sales were reduced by a weak trend in retail sales in North
America. In the comparison period, net sales were improved by royalty receipts
from North America.
Net sales in the third quarter
In the July-September period, the Group's net sales grew by 10 percent relative
to the same period last year and were EUR 26,949 thousand (24,590). Net sales
at comparable exchange rates rose by 9 percent. Net sales were supported by
strong retail sales and nonrecurring promotional deliveries in Finland as well
as by a positive trend in wholesale sales in EMEA. In the comparison period,
net sales were improved by royalty receipts from North America.
Net sales by market area
(EUR 7-9/ 7-9/ Change Change 1-9/ 1-9/ Change Change 2015
1,000) 2016 2015 % % 2016 2015 % %
--------------------------------------------------------------------------------
in in
cur-re cur-re
ncy ncy
terms terms
--------------------------------------------------------------------------------
Finland 15,673 13,966 12 12 39,252 36,750 7 7 52,690
--------------------------------------------------------------------------------
Retail 10,855 10,230 6 6 28,167 26,314 7 7 37,613
sales
--------------------------------------------------------------------------------
Wholesal 4,719 3,649 29 29 10,890 10,171 7 7 14,669
e sales
--------------------------------------------------------------------------------
Royaltie 99 87 14 14 196 264 -26 -26 408
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandina 1,998 1,853 8 7 5,656 5,645 0 1 7,783
via
--------------------------------------------------------------------------------
Retail 1,310 1,218 8 6 3,637 3,540 3 1 4,841
sales
--------------------------------------------------------------------------------
Wholesal 688 635 8 10 2,019 2,105 -4 -1 2,942
e sales
--------------------------------------------------------------------------------
Royaltie - - - - - - - - -
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,448 1,611 52 52 6,771 6,024 12 12 8,280
--------------------------------------------------------------------------------
Retail 207 245 -15 -15 805 857 -6 -6 1,213
sales
--------------------------------------------------------------------------------
Wholesal 2,147 1,299 65 65 5,732 5,029 14 14 6,862
e sales
--------------------------------------------------------------------------------
Royaltie 94 67 40 40 235 138 70 70 205
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,008 2,404 -16 -17 5,886 6,561 -10 -10 9,227
America
--------------------------------------------------------------------------------
Retail 1,419 1,351 5 5 3,807 4,161 -9 -8 5,898
sales
--------------------------------------------------------------------------------
Wholesal 526 652 -19 -20 1,621 1,549 5 5 2,380
e sales
--------------------------------------------------------------------------------
Royaltie 64 401 -84 -84 459 852 -46 -46 949
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pac 4,821 4,755 1 0 13,875 13,191 5 6 17,672
ific
--------------------------------------------------------------------------------
Retail 674 587 15 8 2,321 2,023 15 17 3,159
sales
--------------------------------------------------------------------------------
Wholesal 4,146 4,168 -1 -1 11,554 11,168 3 3 14,513
e sales
--------------------------------------------------------------------------------
Royaltie - - - - - - - - -
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internat 11,276 10,623 6 6 32,188 31,421 2 2 42,962
ional
sales,
total
--------------------------------------------------------------------------------
Retail 3,610 3,401 6 6 10,570 10,581 0 1 15,111
sales
--------------------------------------------------------------------------------
Wholesal 7,508 6,755 11 9 20,925 19,851 5 3 26,696
e sales
--------------------------------------------------------------------------------
Royaltie 158 467 -66 -68 693 989 -30 -32 1,154
s
--------------------------------------------------------------------------------
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Total 26,949 24,590 10 9 71,440 68,171 5 4 95,652
--------------------------------------------------------------------------------
Retail 14,465 13,632 6 6 38,736 36,895 5 4 52,724
sales
--------------------------------------------------------------------------------
Wholesal 12,227 10,404 18 16 31,815 30,022 6 6 41,365
e sales
--------------------------------------------------------------------------------
Royaltie 256 554 -54 -56 889 1,254 -29 -31 1,563
s
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
Finland
In the January-September period, net sales in Finland rose by 7 percent to EUR
39,252 thousand (36,750). Comparable retail sales grew by 4 percent; growth
amounted to 15 percent in outlet stores, whereas net sales declined by 3
percent in other stores. Wholesale sales rose by 7 percent due to nonrecurring
promotional deliveries in Q3.
In the July-September period, net sales in Finland grew by 12 percent to EUR
15,673 thousand (13,966). Comparable retail sales grew by 3 percent; growth
amounted to 15 percent in outlet stores, whereas sales declined by 6 percent in
other stores. Wholesale sales grew by 29 percent due to nonrecurring
promotional deliveries.
Scandinavia
In the January-September period, net sales in Scandinavia were on a par with
those of the comparison period at EUR 5,656 thousand (5,645). Euro-denominated
retail sales grew by 3 percent; retail sales at comparable exchange rates rose
by 1 percent. Wholesale sales in euros fell by 4 percent and at comparable
exchange rates by 1 percent.
In the third quarter, net sales grew by 8 percent and were EUR 1,998 thousand
(1,853). Euro-denominated retail sales rose by 8 percent on the comparison
period; retail sales at comparable exchange rates grew by 6 percent. Wholesale
sales in euros rose by 8 percent and at comparable exchange rates by 10
percent.
EMEA
In the January-September period, net sales rose by 12 percent and were EUR
6,771 thousand (6,024). Retail sales declined by 6 percent, whereas wholesale
sales grew by 14 percent.
In the third quarter, net sales rose by 52 percent to EUR 2,448 thousand
(1,611). Retail sales fell by 15 percent, whereas wholesale sales grew by 65
percent.
North America
In the January-September period, net sales in North America fell by 10 percent
to EUR 5,886 thousand (6,561). Retail sales declined by 9 percent, whereas
wholesale sales grew by 5 percent. The decline in retail sales was partly
attributable to the absence of sales from the Beverly Hills store, which was
closed towards the end of the first quarter of the comparison year, and to
long-lasting construction works in the vicinity of some stores, including the
flagship store in New York City, which continued to reduce footfall. Royalty
income booked in the comparison period also contributed to the decrease in net
sales.
In the July-September period, net sales in North America declined by 16 percent
and were EUR 2,008 thousand (2,404). The biggest single contributory factor to
the decline in net sales was the royalty income booked in the comparison period
last year. Retail sales grew by 5 percent, but wholesale sales were down 19
percent.
Asia-Pacific region
Net sales in the Asia-Pacific region grew in the January-September period by 5
percent to EUR 13,875 thousand (13,191). The trend was upbeat in both wholesale
and retail sales; wholesale sales improved by 3 percent and retail sales
(Australia) by 15 percent. Sales by comparable stores in Australia in euros
were on a par with the comparison period and grew by 2 percent in terms of the
sales currency.
In the July-September period, net sales rose by 1 percent and were EUR 4,821
thousand (4,755). Wholesale sales declined by 1 percent, whereas retail sales
(Australia) grew by 15 percent. Sales by comparable stores in Australia in
euros were on a par with the comparison period, but fell by 7 percent in terms
of the sales currency.
FINANCIAL RESULT
In the January-September period of 2016, the Group's operating profit grew
markedly relative to the same period last year and was EUR 3,482 thousand
(197), which includes a restructuring cost of EUR 847 thousand. Comparable
operating profit was EUR 4,329 thousand (197). Operating result was boosted by
a lower cost level as well as growth in retail and wholesale sales in Finland.
Growth in wholesale sales was due to nonrecurring promotional deliveries in Q3.
The comparison period's costs included considerable expenses related to the
Beverly Hills store's closure. Operating profit growth was adversely affected
by discount-driven retail sales as well as royalty receipts from North America
booked in the comparison period.
In the July-September period, the Group's operating profit grew relative to the
comparison period and amounted to EUR 3,670 thousand (1,228). Operating profit
was boosted by a lower cost level, nonrecurring promotional wholesale
deliveries in Finland, and growth in wholesale sales in EMEA. Operating profit
was also improved by earlier timing of wholesale deliveries compared with the
previous year. Moreover, a smaller proportion of marketing expenses was posted
in the third quarter than in the comparison period. The comparison period's
operating profit was improved by royalty receipts from North America.
Marketing expenses for the January-September period were EUR 2,971 thousand
(3,734) or 4 percent of the Group's net sales (5). Marketing expenses for the
whole year are expected to be on a par with or lower than in 2015.
The Group's depreciation and impairments totalled EUR 3,221 thousand (3,338) or
5 percent of net sales (5).
In the January-September period of 2016, operating profit margin was 4.9
percent (0.3) and comparable operating profit margin 6.1 percent (0.3). In the
July-September period, operating profit margin was 13.6 percent (5.0).
Net financial expenses in the January-September period were EUR 275 thousand
(386) or 0 percent of net sales (1). Foreign exchange rate changes recorded in
net financial items amounted to EUR -97 thousand
(-187).
Result for the January-September period before taxes was EUR 3,207 thousand
(-189). Result after taxes was EUR 2,509 thousand (-394) and earnings per share
were EUR 0.31 (-0.05).
BALANCE SHEET
The Group's balance sheet total as of 30 September 2016 was EUR 48,504 thousand
(47,573). Equity attributable to the equity holders of the parent company was
EUR 26,743 thousand (25,992) or EUR 3.31 per share (3.21).
Non-current assets at the end of September 2016 were EUR 15,846 thousand
(16,955).
At the end of the period under review, net working capital was EUR 20,779
thousand (16,406). Inventories were EUR 23,135 thousand (18,948).
CASH FLOW AND FINANCING
In the January-September period of 2016, cash flow from operating activities
was EUR -1,607 thousand (746) or EUR -0.20 per share (0.09). Cash flow before
cash flow from financing activities was EUR -3,700 thousand (-939).
In the July-September period, cash flow from operating activities was EUR 1,425
thousand (717) or EUR 0.18 per share (0.09). Cash flow before cash flow from
financing activities was EUR 916 thousand (-178).
The Group’s financial liabilities at the end of the period under review stood
at EUR 12,615 thousand (10,703).
At the end of the review period, the Group’s cash and cash equivalents amounted
to EUR 2,905 thousand (3,586). In addition, the Group had unused committed
long- and short-term credit lines of EUR 7,780 thousand (11,824).
The Group's equity ratio at the end of September 2016 was 55.2 percent (54.7).
Gearing was 36.3 percent (27.4).
INVESTMENTS
The Group's gross investments in the January-September period were EUR 2,322
thousand (1,685) or 3 percent of net sales (2). Most of the investments were
devoted to renewal of the washing machine at the company's fabric printing
factory in Helsinki, IT systems, and store premises.
PERSONNEL
In the January-September period, the number of employees averaged 447 (460). At
the end of the period, the Group had 416 employees (444), of whom 111 (114)
worked outside Finland. The number of employees working outside Finland was
broken down as follows: Scandinavia 51 (42), EMEA 5 (8), North America 34 (45)
and Asia-Pacific region 21 (19). The personnel at company-owned stores totalled
232 (223) at the end of September.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of September 2016, 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 7,345 shareholders at the
end of the period under review (7,111). Of the shares, 10.0 percent were owned
by nominee-registered or non-Finnish holders (21.6).
Information about the largest shareholders can be found on the company's
website at company.marimekko.com under Investors/Share
information/Shareholders.
Share trading and the company’s market capitalisation
In the January-September period 2016, a total of 1,725,430 Marimekko shares
were traded, representing 21.3 percent of the shares outstanding. The total
value of the share turnover was EUR 13,544,546. The lowest price of the share
was EUR 6.06, the highest was EUR 8.70 and the average price was EUR 7.85. At
the end of September 2016, the closing price of the share was EUR 7.50. The
company’s market capitalisation on 30 September 2016 was EUR 60,672,075
(68,599,893).
Authorisations
At the end of the review period, the Board of Directors had no valid
authorisations to carry out share issues or to issue convertible bonds or bonds
with warrants, or to acquire or surrender Marimekko shares.
CHANGES IN MANAGEMENT
On 15 September 2016, Marimekko announced its appointment of Päivi Paltola,
M.Sc. (Econ.), as the company's Chief Marketing Officer (CMO) and member of the
Management Group as of 30 January 2017. Until then, Chief Sales Officer Päivi
Lonka will be in charge of the company’s marketing organisation in close
collaboration with Creative Director Anna Teurnell, as previously announced.
As part of reorganising its operations in spring 2016, Marimekko initiated a
recruitment process for a Chief Supply Chain Officer. This autumn, Christina
Ovansjö started as Acting Supply Chain Director. She has 20 years of
international experience in sourcing, production and merchandising. She has
previously worked for Gap International as VP Global Production after a career
with H&M and Liz Claiborne, to name but a few. Due to her fixed-term contract,
she is not a member of Marimekko’s Management Group, but she will participate
in the work of the group.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The major strategic risks for the near future are associated with developments
in consumer confidence, overall economic trends, and the consequent
fluctuations in the operating environment, especially in Finland. Near-term
strategic risks also include risks related to the management of the company’s
expansion, digitisation of retailing, and changes in Marimekko’s design,
product assortment and the focal points of collections.
Marimekko products are sold in approximately 40 countries. The company's key
markets are Northern Europe, North America and the Asia-Pacific region. There
are Marimekko stores in 17 countries. In addition to Finland, Marimekko has
company-owned stores in other Nordic countries, Germany, 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.
Marimekko is undergoing a phase of internationalisation and change. The
distribution of products is being expanded in all key markets. Growth is based
mainly on opening retailer-owned Marimekko stores and shop-in-shops as well as
on setting up company-owned stores and expanding e-commerce.
In recent years, expansion has called for larger or entirely new country
organisations, which burdens the cost-effectiveness of the company. Expanding
the network of company-owned stores and building international e-commerce have
increased the company’s investments, lease liabilities of store premises and
inventories as well as the company’s fixed costs. Furthermore, major
partnership agreements, the selection of partners as well as store lease
agreements in the company’s key market areas involve risks. Maintaining
competitiveness demands efficiency and the constant re-evaluation of
operations.
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. Agreements with freelance designers
and fees paid to designers based on these agreements are also an essential part
of the management of intellectual property rights.
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 information systems, and changes in the
prices of raw materials and other procurement items. The company primarily uses
subcontractors for its manufacturing. The revamped collections have also
brought new partners into the company’s supply chain. Any delays or
disturbances in supply, or fluctuations in the quality of products, may have a
momentary 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 financial 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, changes in
exchange rates (particularly the US dollar, Swedish krona and Australian
dollar), and taxation may have an impact on the company’s financial status.
MARKET OUTLOOK AND GROWTH TARGETS IN 2016
General uncertainty in the global economy is forecast to continue, and this is
reflected in consumers' purchasing behaviour and consumption habits in all of
Marimekko's market areas. The main thrust in Marimekko's operations in 2016 is
on improving efficiency and results. Securing competitiveness will facilitate
stronger growth potential in future years. Growth is forecast to be modest in
2016 and to focus on retailer-owned Marimekko stores. Retailers’ wariness
towards additional purchases and in selecting new suppliers continues to be
reflected in Marimekko's wholesale sales expectations also in 2016.
Furthermore, the significance of developing the company’s own online store and
other online sales channels is expected to grow. The first collections created
entirely under the direction of the new Creative Director were brought to the
market at the beginning of 2016. With the updated collections Marimekko is
reaching out also to new target groups in addition to the company’s current
customers.
The situation in retail trade in Marimekko’s important domestic market Finland
has remained clearly below the normal level. In spite of improvement in
consumer confidence, weak purchasing power and uncertainty in the labour market
are overshadowing prospects in 2016. Nonrecurring promotional deliveries will
have a positive effect on the company's sales this year.
The Asia-Pacific region, Marimekko's second-biggest market, plays an important
part in the company's internationalisation. In recent years, new markets have
been opened up in China, Hong Kong, Taiwan, Singapore and Thailand. Although
sales in new markets are expected to grow, their combined proportion of
Marimekko's net sales is still relatively small compared with Japan, which is
clearly the most important single market in this region to the company. This
year and in the next few years, the trend in sales in Japan is expected to be
more moderate than in the previous years. Sales are supported by developing the
operations of Marimekko stores there and by optimising the product range. New
stores will be opened in Japan at an estimated rate of a few stores per year.
In addition, shop-in-shops located mainly in department stores are also planned
to be opened in Japan. In Australia, the outlook is positive and the market is
expected to grow through in-house retailing, quality department stores and the
company’s own online store. Most of the Marimekko stores to be opened in 2016
will be located in the Asia-Pacific region.
Marimekko's sales in North America are expected to fall short of the previous
year's level. Long-lasting construction works in the vicinity of Marimekko’s
flagship store in New York, which plays a significant part in the company’s
sales, are still ongoing and continue to reduce footfall. The design
collaboration carried out in the second quarter of the year with the US retail
chain Target is expected to support the building of Marimekko's international
brand recognition in the long term. The company will continue to work to
improve the profitability of its existing stores and to lighten the operational
cost structure while seeking new sales channels to compensate for possible
changes in wholesale agreements.
Sales expectations in Scandinavia are lower than previously estimated.
Marimekko’s visibility in Sweden has increased and interest in the brand has
grown, but this has not turned into sales yet. In Norway and Denmark, an update
of the distribution channel structure is still under way. However, these
markets are expected to offer potential for the brand in the long-term.
In EMEA, sales expectations are modest. In order to raise the global profile of
the brand and to promote growth, Marimekko continues to focus on cooperation
with well-known department stores and other distribution channels in this
market area.
The main thrust in expansion in 2016 continues to be on openings of
retailer-owned Marimekko stores. The aim is to open around 10-20 new Marimekko
stores and shop-in-shops. Of these, 1-2 would be company-owned. Also, the
company focuses strongly on the operational enhancement and the improvement of
profitability of Marimekko stores opened in recent years. In the
January-September period, 12 new stores and shop-in-shops were opened, and two
of these were company-owned stores. Nine of the new retailer-owned stores are
located in the Asia-Pacific region.
The expenses of marketing operations in 2016 are expected to be at the same
level as or lower than in 2015 (EUR 5.1 million). The total investments for
2016 of the Marimekko Group are estimated at approximately EUR 3 million (3.2).
Most of investments will be devoted to acquiring new washing machinery for the
company’s printing factory in Helsinki, building new store premises and
purchases of fittings, as well as improving data systems supporting business
operations.
FINANCIAL GUIDANCE FOR 2016
The Marimekko Group's net sales for 2016 are forecast to be at the same level
as in 2015. Operating profit excluding restructuring costs is expected to be
higher than in the previous year.
Helsinki, 2 November 2016
Marimekko Corporation
Board of Directors
INTERIM REPORT, 1 January - 30 September 2016: TABLE SECTION
The quarterly information for 2016 is not 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 compliance with IAS 34. Marimekko has
applied the same accounting principles in this report as were applied in the
2015 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 2015. The adoption of new and updated standards has
had no effect on the figures stated for the period under review.
FORMULAS FOR KEY FIGURES
Comparable EBITDA:
Operating result - depreciation - impairments - items affecting comparability
Comparable operating result:
Operating result - items affecting comparability in operating result
Comparable operating result margin, %
Operating result - items affecting comparability in operating result x 100 /
Net sales
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Adjusted number of shares (average for
the financial year)
Equity per share, EUR:
Shareholders’ equity / Number of shares, 30 September
Return on equity (ROE), %:
Rolling 12 months (Profit before taxes - income taxes) X 100 / Shareholders’
equity (average for the financial year)
Return on investment (ROI), %:
Rolling 12 months (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 - tax liability
- current provisions - trade and other payables
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/20 7-9/20 1-9/201 1-9/201 2015
16 15 6 5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 26,949 24,590 71,440 68,171 95,652
--------------------------------------------------------------------------------
Other operating income 51 59 290 169 335
--------------------------------------------------------------------------------
Increase or decrease in inventories 92 853 3,677 1,041 367
of completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -9,918 -9,816 -29,376 -25,123 -35,208
--------------------------------------------------------------------------------
Employee benefit expenses -5,589 -5,952 -19,087 -19,264 -26,232
--------------------------------------------------------------------------------
Depreciation and impairments -1,132 -1,219 -3,221 -3,338 -4,511
--------------------------------------------------------------------------------
Other operating expenses -6,782 -7,288 -20,242 -21,459 -28,861
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT 3,670 1,228 3,482 197 1,542
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 23 3 26 23 49
--------------------------------------------------------------------------------
Financial expenses -153 -268 -301 -409 -297
--------------------------------------------------------------------------------
-130 -264 -275 -386 -247
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 3,540 964 3,207 -189 1,294
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -758 -353 -698 -206 -491
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 2,782 611 2,509 -394 803
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 2,782 611 2,509 -394 803
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.34 0.08 0.31 -0.05 0.10
calculated on the result
attributable to equity holders of
the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/20 7-9/20 1-9/20 1-9/20 2015
16 15 16 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 2,782 611 2,509 -394 803
--------------------------------------------------------------------------------
Items that could be reclassified to profit - - - - -
or loss at a future point in time
--------------------------------------------------------------------------------
Change in translation difference 167 45 -64 172 112
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 2,949 656 2,445 -222 915
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 2,949 656 2,445 -222 915
holders of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2016 30.9.2015 31.12.2015
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,499 2,221 1,856
--------------------------------------------------------------------------------
Tangible assets 14,324 14,718 15,486
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16 16
--------------------------------------------------------------------------------
Deferred tax assets 8 - -
--------------------------------------------------------------------------------
15,846 16,955 17,359
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 23,135 18,948 18,488
--------------------------------------------------------------------------------
Trade and other receivables 6,618 7,974 5,966
--------------------------------------------------------------------------------
Current tax assets - 110 -
--------------------------------------------------------------------------------
Cash and cash equivalents 2,905 3,586 4,249
--------------------------------------------------------------------------------
32,657 30,618 28,703
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 48,504 47,573 46,061
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040 8,040
--------------------------------------------------------------------------------
Reserve for invested non-restricted equity 502 502 502
--------------------------------------------------------------------------------
Translation differences -26 98 38
--------------------------------------------------------------------------------
Retained earnings 18,227 17,352 18,549
--------------------------------------------------------------------------------
Shareholders’ equity, total 26,743 25,992 27,129
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities - 62 9
--------------------------------------------------------------------------------
Provisions 135 190 190
--------------------------------------------------------------------------------
Financial liabilities 5,220 7,176 3,834
--------------------------------------------------------------------------------
Finance lease liabilities 3,196 3,272 3,231
--------------------------------------------------------------------------------
8,550 10,700 7,264
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 8,580 10,626 11,189
--------------------------------------------------------------------------------
Current tax liabilities 393 - 226
--------------------------------------------------------------------------------
Provisions 38 - -
--------------------------------------------------------------------------------
Financial liabilities 4,000 - -
--------------------------------------------------------------------------------
Finance lease liabilities 200 255 253
--------------------------------------------------------------------------------
13,211 10,880 11,668
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 21,761 21,581 18,932
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 48,504 47,573 46,061
--------------------------------------------------------------------------------
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) 1-9/201 1-9/201 2015
6 5
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 2,509 -394 803
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 3,221 3,338 4,511
--------------------------------------------------------------------------------
Financial income and expenses 275 386 247
--------------------------------------------------------------------------------
Taxes 698 206 491
--------------------------------------------------------------------------------
Cash flow before change in working capital 6,703 3,535 6,054
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -7,793 -2,435 1,502
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -652 -897 1,216
non-interest-bearing trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -4,647 -1,390 -930
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -2,495 -148 1,216
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial -1,090 1,100 7,556
items and taxes
--------------------------------------------------------------------------------
Paid interest and payments on other financial expenses -222 -221 -305
--------------------------------------------------------------------------------
Interest received 10 23 49
--------------------------------------------------------------------------------
Taxes paid -305 -156 -986
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES -1,607 746 6,313
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -2,093 -1,685 -3,171
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -2,093 -1,685 -3,171
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term loans drawn 4,000 - -
--------------------------------------------------------------------------------
Long-term loans drawn 1,385 3,481 139
--------------------------------------------------------------------------------
Finance lease liabilities paid -198 -203 -280
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES 2,356 446 -2,973
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -1,344 -493 170
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 4,249 4,079 4,079
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 2,905 3,586 4,249
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
(EUR 1,000) Share Reserve for Transl Retained Shareholder
capital invested ation earnings s’ equity,
non-restricted differ total
equity ences
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -74 20,577 29,045
equity
1 January 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -394 -394
period
--------------------------------------------------------------------------------
Translation 172 172
differences
--------------------------------------------------------------------------------
Total 172 -394 -222
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 98 17,352 25,992
equity
30 September 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 38 18,549 27,129
equity
1 January 2016
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 2,509 2,509
period
--------------------------------------------------------------------------------
Translation -64 -64
differences
--------------------------------------------------------------------------------
Total -64 2,509 2,445
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -26 18,227 26,743
equity
30 September 2016
--------------------------------------------------------------------------------
KEY FIGURES
1-9/2016 1-9/2015 Change, % 2015
--------------------------------------------------------------------------------
Earnings, per share, EUR 0.31 -0.05 - 0.10
--------------------------------------------------------------------------------
Equity per share, EUR 3.31 3.21 3 3.35
--------------------------------------------------------------------------------
Return on equity (ROE), % * 14.2 3.2 - 2.9
--------------------------------------------------------------------------------
Return on investment (ROI), % * 12.7 5.4 - 4.5
--------------------------------------------------------------------------------
Equity ratio, % 55.2 54.7 - 59.0
--------------------------------------------------------------------------------
Gearing, % 36.3 27.4 - 11.3
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 2,322 1,685 38 3,591
--------------------------------------------------------------------------------
Gross investments, % of net sales 3 2 - 4
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 31,553 30,575 3 36,252
--------------------------------------------------------------------------------
Average personnel 447 460 -3 460
--------------------------------------------------------------------------------
Personnel at the end of the period 416 444 -6 476
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
* ROI and ROE are reported as 12-month rolling values as of the first review
period of 2016. Figures for comparison periods have been restated accordingly.
The change improves comparability between review periods.
SEGMENT INFORMATION
(EUR 1,000) 1-9/2016 1-9/2015 Change, % 2015
---------------------------------------------------------
Marimekko business
---------------------------------------------------------
Net sales 71,440 68,171 5 95,652
---------------------------------------------------------
Operating result 3,482 197 - 1,542
---------------------------------------------------------
Assets 48,504 47,573 2 46,061
---------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 7-9/ 7-9/ Change Change 1-9/ 1-9/ Change Change 2015
1,000) 2016 2015 % % 2016 2015 % %
--------------------------------------------------------------------------------
in in
cur-re cur-re
ncy ncy
terms terms
--------------------------------------------------------------------------------
Finland 15,673 13,966 12 12 39,252 36,750 7 7 52,690
--------------------------------------------------------------------------------
Retail 10,855 10,230 6 6 28,167 26,314 7 7 37,613
sales
--------------------------------------------------------------------------------
Wholesal 4,719 3,649 29 29 10,890 10,171 7 7 14,669
e sales
--------------------------------------------------------------------------------
Royaltie 99 87 14 14 196 264 -26 -26 408
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandina 1,998 1,853 8 7 5,656 5,645 0 1 7,783
via
--------------------------------------------------------------------------------
Retail 1,310 1,218 8 6 3,637 3,540 3 1 4,841
sales
--------------------------------------------------------------------------------
Wholesal 688 635 8 10 2,019 2,105 -4 -1 2,942
e sales
--------------------------------------------------------------------------------
Royaltie - - - - - - - - -
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,448 1,611 52 52 6,771 6,024 12 12 8,280
--------------------------------------------------------------------------------
Retail 207 245 -15 -15 805 857 -6 -6 1,213
sales
--------------------------------------------------------------------------------
Wholesal 2,147 1,299 65 65 5,732 5,029 14 14 6,862
e sales
--------------------------------------------------------------------------------
Royaltie 94 67 40 40 235 138 70 70 205
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,008 2,404 -16 -17 5,886 6,561 -10 -10 9,227
America
--------------------------------------------------------------------------------
Retail 1,419 1,351 5 5 3,807 4,161 -9 -8 5,898
sales
--------------------------------------------------------------------------------
Wholesal 526 652 -19 -20 1,621 1,549 5 5 2,380
e sales
--------------------------------------------------------------------------------
Royaltie 64 401 -84 -84 459 852 -46 -46 949
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pac 4,821 4,755 1 0 13,875 13,191 5 6 17,672
ific
--------------------------------------------------------------------------------
Retail 674 587 15 8 2,321 2,023 15 17 3,159
sales
--------------------------------------------------------------------------------
Wholesal 4,146 4,168 -1 -1 11,554 11,168 3 3 14,513
e sales
--------------------------------------------------------------------------------
Royaltie - - - - - - - - -
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internat 11,276 10,623 6 6 32,188 31,421 2 2 42,962
ional
sales,
total
--------------------------------------------------------------------------------
Retail 3,610 3,401 6 6 10,570 10,581 0 1 15,111
sales
--------------------------------------------------------------------------------
Wholesal 7,508 6,755 11 9 20,925 19,851 5 3 26,696
e sales
--------------------------------------------------------------------------------
Royaltie 158 467 -66 -68 693 989 -30 -32 1,154
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 26,949 24,590 10 9 71,440 68,171 5 4 95,652
--------------------------------------------------------------------------------
Retail 14,465 13,632 6 6 38,736 36,895 5 4 52,724
sales
--------------------------------------------------------------------------------
Wholesal 12,227 10,404 18 16 31,815 30,022 6 6 41,365
e sales
--------------------------------------------------------------------------------
Royaltie 256 554 -54 -56 889 1,254 -29 -31 1,563
s
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
NET SALES BY PRODUCT LINE
(EUR 1,000) 7-9/ 7-9/ Change, % 1-9/ 1-9/ Change, % 2015
2016 2015 2016 2015
--------------------------------------------------------------------------------
Fashion 9,212 10,414 -12 27,253 28,573 -5 38,810
--------------------------------------------------------------------------------
Home 10,293 8,286 24 25,114 23,517 7 34,715
--------------------------------------------------------------------------------
Bags and 7,444 5,890 26 19,073 16,081 19 22,127
accessories
--------------------------------------------------------------------------------
Total 26,949 24,590 10 71,440 68,171 5 95,652
--------------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 7-9/2016 4-6/2016 1-3/2016 10-12/2015
------------------------------------------------------------
Net sales 26,949 23,543 20,948 27,481
------------------------------------------------------------
Operating result 3,670 871 -1,059 1,345
------------------------------------------------------------
Earnings per share 0.34 0.08 -0.12 0.15
------------------------------------------------------------
------------------------------------------------------------
(EUR 1,000) 7-9/2015 4-6/2015 1-3/2015 10-12/2014
------------------------------------------------------------
Net sales 24,590 23,446 20,135 26,089
------------------------------------------------------------
Operating result 1,228 294 -1,325 1,946
------------------------------------------------------------
Earnings per share 0.08 0.01 -0.14 0.15
------------------------------------------------------------
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