2015-11-05 07:30:00 CET
2015-11-05 07:30:07 CET
REGULATED INFORMATION
Marimekko - Interim report (Q1 and Q3)
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January – 30 September 2015: Net sales remained unchanged in spite of weak market conditions; operating profit declined markedly as expected
Marimekko Corporation, Interim Report, 5 November 2015 at 8.30 a.m.
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January - 30 September 2015: Net
sales remained unchanged in spite of weak market conditions; operating profit
declined markedly as expected
January-September in brief
-- Net sales held steady at the previous year's level, at EUR 68.2 million
(1-9/2014: 68.1).
-- Net sales at comparable exchange rates fell by 4 percent.
-- Net sales were mainly affected by a decline in wholesale sales in Finland,
Scandinavia and the Asia-Pacific region. The decline was partly due to the
postponement of deliveries of winter collections from September to October.
Moreover, wholesale sales in the comparison period were increased by
considerable nonrecurring promotional deliveries in Finland in the third
quarter. Comparable retail sales at prime stores also declined in all
market areas. Net sales were boosted by growth in discount-driven sales by
outlet stores and online shop in Finland in the second and third quarters, as well as by the new stores opened in 2014 and 2015.
-- Operating profit excluding nonrecurring items was EUR 0.2 million (4.3).
The comparison period's operating profit was boosted by considerable
nonrecurring promotional deliveries in Finland in the third quarter.
Operating profit for the period under review was decreased by the
considerable expenses related to the closure of the Beverly Hills store
during the first quarter, a decline in wholesale sales in Finland,
Scandinavia and the Asia-Pacific region, a downturn in relative wholesale
margins, a deterioration in the profitability of retail sales in Finland
occasioned by a fall in the sales of prime stores, and an increase in
design and marketing expenses. Operating profit was improved, however, by
an increase in royalty earnings in North America during the first and third
quarters and by the additional sales of new stores.
-- Marimekko continues to invest in long-term growth while focusing on
enhancing the operations of its company-owned stores, developing online
retail, improving the general profitability of its business, and creating
even more attractive design and products.
The third quarter in brief
-- Net sales fell by 8 percent to EUR 24.6 million (Q3/2014: 26.8).
-- Net sales at comparable exchange rates declined by 15 percent.
-- Retail sales were on a par with the previous year; wholesale sales fell by
20 percent. The fall in wholesale sales was partly due to the postponement
of deliveries of winter collections from September to October. Moreover,
wholesale sales were boosted last year by considerable nonrecurring
promotional deliveries in Finland.
-- Operating profit was EUR 1.2 million (4.9). The comparison period's
operating profit was boosted by considerable nonrecurring promotional
deliveries. Operating profit for the review period was decreased by a
decline in wholesale sales in all market areas except North America, adownturn in relative wholesale margins, and an increase in design and
marketing expenses. Operating profit was improved, however, by growth in
discount-driven sales by outlet stores and online shop in Finland, the
additional sales of new stores, and an increase in royalty earnings in
North America.
Financial guidance for 2015
The full-year estimate for 2015 is unchanged: Based on the market outlook,
estimated sales development in the company's market areas, especially in
Finland, the company's growth targets as well as other estimated factors, the
Marimekko Group's year 2015 net sales are forecast to be at the same level as
in 2014 or lower. Operating profit excluding nonrecurring items in 2015 is
estimated to be lower than in 2014.
President Tiina Alahuhta-Kasko:"During the period under review, the situation in the retail trade in
Marimekko's important domestic market became even more difficult, and
uncertainty continued over the global economy, which impacted negatively on
consumer spending behaviour in all markets. Our euro-denominated net sales were
practically unchanged in the January-September period. Due to an increase in
discount-driven sales by outlet stores and online shop, comparable retail sales
in Finland grew by three percent, which was a fairly good result considering
the general trend in the Finnish clothing and textile sector. Regardless of the
weak market conditions, I am not satisfied with the development of our sales,
especially in the third quarter of the year. This autumn we did not have such
considerable nonrecurring promotional deliveries that boosted wholesale sales
in Finland in the comparison period. The weak trend in sales was also reflected
in the decreased operating profit. During the rest of the year, we will focus
strongly on ensuring successful holiday sales, which are important to
Marimekko, and will further enhance cooperation with our international partners
in order to develop the operations of Marimekko stores as well as our product
range.
“In spite of difficult global market conditions, we are determined to continue
our internationalisation and the long-term development of Marimekko. At the
beginning of October, we took a historic step by presenting our point of view
at the Paris Fashion Week for the first time. The spring and summer 2016
ready-to-wear collection we showed to the international fashion media,
influencers and buyers was positively received. Our aim was to strengthen our
awareness in the global fashion arena, and I believe we succeeded in this. It
is important for us to reinforce our foothold in Western and Central Europe in
addition to our main markets. We are aiming for this by seeking a stronger
presence in select department and multi-brand stores and by expanding our
online retailing.
“In September, we opened our renewed online store, and in connection with this,
our e-commerce was extended to seven new countries in Europe. Enhancing the
customer experience has been a focus area for us this year; our aim is to make
the experience even more inspiring and seamless between online and offline
stores. "Also overall, our international expansion has advanced this year in accordance
with our strategy, with the main thrust on the Asia-Pacific region. We have
just opened our fourth, company-owned Australian store in Melbourne. During the
year, new markets have been opened up in Bangkok and Singapore as well as Dubai
in the Middle East. The Helsinki metropolitan area is an important region in
the domestic market for Marimekko. In September, we opened a company-owned
store in the renovated Forum mall. In mid-November, with the opening of a new
flagship store based on our new store concept on Mikonkatu, our presence in
Helsinki will be reinforced.”
Key indicators
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2015 2014 , % 2015 2014 , % 2014
--------------------------------------------------------------------------------
Net sales, EUR million 24.6 26.8 -8 68.2 68.1 0 94.2
--------------------------------------------------------------------------------
International sales, EUR 10.6 11.6 -8 31.4 30.9 2 42.1
million
--------------------------------------------------------------------------------
% of net sales 43 43 46 45 45
--------------------------------------------------------------------------------
EBITDA, EUR million 2.4 5.9 -59 3.5 6.9 -48 9.9
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 2.4 5.9 -59 3.5 7.5 -53 10.5
items, EUR million
--------------------------------------------------------------------------------
Operating profit, EUR million 1.2 4.9 -75 0.2 3.6 -95 5.6
--------------------------------------------------------------------------------
Operating profit excluding 1.2 4.9 -75 0.2 4.3 -95 6.3
nonrecurring items, EUR
million
--------------------------------------------------------------------------------
Operating profit margin, % 5.0 18.2 0.3 5.4 5.9
--------------------------------------------------------------------------------
Operating profit margin 5.0 18.2 0.3 6.3 6.7
excluding nonrecurring items,
%
--------------------------------------------------------------------------------
Result for the period, EUR 0.6 4.0 -85 -0.4 2.9 -114 4.1
million
--------------------------------------------------------------------------------
Earnings per share, EUR 0.08 0.49 -84 -0.05 0.35 -114 0.51
--------------------------------------------------------------------------------
Cash flow from operating 0.7 4.4 -84 0.7 3.5 -79 9.9
activities,
EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % 0.1 13.8 15.6
--------------------------------------------------------------------------------
Equity ratio, % 54.7 56.8 61.6
--------------------------------------------------------------------------------
Gross investments, EUR million 0.9 0.6 40 1.7 1.4 18 2.1
--------------------------------------------------------------------------------
Personnel at the end of the 444 456 479
period
--------------------------------------------------------------------------------
outside Finland 114 121 129
--------------------------------------------------------------------------------
Brand sales*, EUR million 51.1 51.6 -1 138.7 132.9 4 186.8
--------------------------------------------------------------------------------
outside Finland, EUR million 32.6 30.5 7 88.9 80.9 10 114.6
--------------------------------------------------------------------------------
proportion of international 64 59 64 61 61
sales, %
--------------------------------------------------------------------------------
Number of stores** 148 136 9 144
--------------------------------------------------------------------------------
The change percentages in the table were calculated on exact figures before the
amounts were rounded to millions of euros.
* 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 53 at the end of September 2015 (53). Information on changes is
available in the section Internationalisation and changes in the store network.
Further information:
Tiina Alahuhta-Kasko, President, tel. +358 9 758 71
MARIMEKKO CORPORATION
Corporate Communications
Asta Halme
Tel. +358 9 7587 233
asta.halme@marimekko.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 January - 30 September 2015
OPERATING ENVIRONMENT
Overall uncertainty in the global economy is forecast to continue. In the
Chinese economy, a decline in foreign trade and lower inflation increase
instability and may presage a slowdown in GDP growth. In the United States,
growth recovered during the summer to its previous level, and consumer
confidence also seems to be returning. The unsettled global conditions and the
continuously growing number of refugees may reduce consumer confidence in
Europe. Expectations for the continent have not improved in recent months.
In Finland, uncertain economic conditions continue and retailing has become
even more challenging. Domestic demand deteriorated in the summer, and
purchasing power is showing a sluggish trend, which is likely to reduce
consumer demand in future as well. Expectations for sales are still modest, and
the downturn in sales is forecast to continue. In August, retail trade
confidence in Finland was the second weakest in the EU countries.
(Confederation of Finnish Industries EK: Economic Review, 20 October 2015;
Confidence Indicators, September 2015; Business Tendency Survey, August 2015.)
In the January-September period of 2015, the value of retail sales in Finland
fell by 1.2 percent and the volume of sales, which measures real growth, by 0.0
percent (Statistics Finland: Turnover of Trade, retail trade flash estimate,
September 2015).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
Marimekko is undergoing a dynamic phase of internationalisation. In 2015, the
main thrust in expansion has been on openings of retailer-owned Marimekko
stores, particularly in the Asia-Pacific region. The goal is to open a total of
10-20 new Marimekko stores and shop-in-shops. Of these, 1-3 would be
company-owned stores. The company also continues to enhance the operations of
company-owned stores opened in recent years and to improve their profitability.
In the third quarter, Marimekko opened its own store in the renovated Forum
mall in Helsinki and a retailer-owned shop-in-shop was opened in Stockholm. In
mid-September, the Finnish flagship store in Helsinki was closed for the
duration of its relocation; the new flagship store will open in mid-November on
Mikonkatu street. During the period, one retailer-owned store and two
shop-in-shops were closed in Finland. After the end of the period, a
Marimekko-owned store has opened in Melbourne, Australia.
Number of stores & shop-in-shops* 30.9.2015 30.9.2014 31.12.2014
-----------------------------------------------------------------------
Finland 61 59 62
-----------------------------------------------------------------------
Company-owned stores 24 23 24
-----------------------------------------------------------------------
Company-owned outlet stores 11 9 10
-----------------------------------------------------------------------
Retailer-owned stores 16 17 17
-----------------------------------------------------------------------
Retailer-owned shop-in-shops 10 10 11
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Scandinavia 11 10 10
-----------------------------------------------------------------------
Company-owned stores 8 8 8
-----------------------------------------------------------------------
Company-owned outlet stores - - -
-----------------------------------------------------------------------
Retailer-owned stores - - -
-----------------------------------------------------------------------
Retailer-owned shop-in-shops 3 2 2
-----------------------------------------------------------------------
-----------------------------------------------------------------------
EMEA 4 4 3
-----------------------------------------------------------------------
Company-owned stores 2 4 3
-----------------------------------------------------------------------
Company-owned outlet stores - - -
-----------------------------------------------------------------------
Retailer-owned stores 2 - -
-----------------------------------------------------------------------
Retailer-owned shop-in-shops - - -
-----------------------------------------------------------------------
-----------------------------------------------------------------------
North America 23 21 23
-----------------------------------------------------------------------
Company-owned stores 4 5 5
-----------------------------------------------------------------------
Company-owned outlet stores 1 1 1
-----------------------------------------------------------------------
Retailer-owned stores 2 2 2
-----------------------------------------------------------------------
Retailer-owned shop-in-shops 16 13 15
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Asia-Pacific 49 42 46
-----------------------------------------------------------------------
Company-owned stores 3 3 3
-----------------------------------------------------------------------
Company-owned outlet stores - - -
-----------------------------------------------------------------------
Retailer-owned stores 43 37 39
-----------------------------------------------------------------------
Retailer-owned shop-in-shops 3 2 4
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Total 148 136 144
-----------------------------------------------------------------------
Company-owned stores 41 43 43
-----------------------------------------------------------------------
Company-owned outlet stores 12 10 11
-----------------------------------------------------------------------
Retailer-owned stores 63 56 58
-----------------------------------------------------------------------
Retailer-owned shop-in-shops 32 27 32
-----------------------------------------------------------------------
* Includes shop-in-shops with an area exceeding 30 sqm.
In September, Marimekko's own distribution network in Europe was reinforced
when the company's e-commerce was expanded to embrace France, the UK, Germany,
Italy, Spain, the Netherlands and Belgium in addition to Finland, Sweden,
Denmark and the United States. Following the expansion, Marimekko's online shop
now reaches customers in 11 countries.
NET SALES
Retail market conditions continued to be uncertain during the period under
review. Especially in Finland, consumer confidence and purchasing power
remained weak. In the January-September period, consolidated net sales held
steady at the previous year's level and were EUR 68,171 thousand (68,061). Net
sales at comparable exchange rates fell by 4 percent. International sales rose
by 2 percent; net sales in Finland were down 1 percent.
Retail sales grew by 4 percent. Sales were boosted by the additional sales of
stores opened in 2014 and 2015, an increase in discount-driven sales by outlet
stores and online shop in Finland, and the strong US dollar. Comparable sales
by prime stores fell in all market areas.
Wholesale sales fell by 6 percent. Sales declined in Finland, Scandinavia and
the Asia-Pacific region. The decline was partly due to the postponement of
deliveries of winter collections from September to October. Moreover, wholesale
sales in the comparison period were increased by considerable nonrecurring
promotional deliveries in Finland in the third quarter. In North America,
euro-denominated sales rose due to the strong dollar.
Royalty income grew markedly, especially due to a licensing agreement concluded
in North America.
In the July-September period, consolidated net sales fell by 8 percent to EUR
24,590 thousand (26,811). Net sales at comparable exchange rates declined by 15
percent. International sales and net sales in Finland both fell by 8 percent.
Retail sales were on a par with the previous year; wholesale sales declined by
20 percent. The decline in wholesale sales was partly due to the postponement
of deliveries of winter collections from September to October. Moreover,
wholesale sales were boosted last year by considerable nonrecurring promotional
deliveries in Finland.
Net sales by market area
(EUR 7-9/ 7-9/ Change Change 1-9/ 1-9/ Change Change 1-12/
1,000) 2015 2014 , , 2015 2014 , , 2014
% % % %
In In
curren curren
cy cy
terms terms
--------------------------------------------------------------------------------
Finland 13,966 15,203 -8 -8 36,750 37,196 -1 -1 52,034
--------------------------------------------------------------------------------
Retail 10,230 9,809 4 4 26,314 24,812 6 6 35,363
sales
--------------------------------------------------------------------------------
Wholesal 3,649 5,290 -31 -31 10,171 12,108 -16 -16 16,245
e sales
--------------------------------------------------------------------------------
Royaltie 87 103 -16 -16 264 276 -4 -4 425
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandina 1,853 2,365 -22 -18 5,645 6,248 -10 -6 8,452
via
--------------------------------------------------------------------------------
Retail 1,218 1,374 -11 -8 3,540 3,767 -6 -3 5,151
sales
--------------------------------------------------------------------------------
Wholesal 635 990 -36 -34 2,105 2,481 -15 -12 3,301
e sales
--------------------------------------------------------------------------------
Royaltie - - - - -
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 1,611 2,080 -23 -23 6,024 5,819 4 4 7,554
--------------------------------------------------------------------------------
Retail 245 379 -35 -35 857 1,096 -22 -22 1,509
sales
--------------------------------------------------------------------------------
Wholesal 1,299 1,664 -22 -22 5,029 4,611 9 9 5,882
e sales
--------------------------------------------------------------------------------
Royaltie 67 37 78 78 138 111 24 24 162
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,404 2,201 9 -7 6,561 5,752 14 -5 8,584
America
--------------------------------------------------------------------------------
Retail 1,351 1,579 -14 -27 4,161 4,221 -1 -19 5,983
sales
--------------------------------------------------------------------------------
Wholesal 652 552 18 -1 1,549 1,336 16 -3 1,957
e sales
--------------------------------------------------------------------------------
Royaltie 401 70 852 195 644
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pac 4,755 4,963 -4 -8 13,191 13,046 1 0 17,527
ific
--------------------------------------------------------------------------------
Retail 587 530 11 22 2,023 1,546 31 30 2,675
sales
--------------------------------------------------------------------------------
Wholesal 4,168 4,432 -6 -13 11,168 11,496 -3 -6 14,847
e sales
--------------------------------------------------------------------------------
Royaltie - - - 5 5
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internat 10,623 11,608 -8 -17 31,421 30,864 2 -5 42,116
ional
sales,
total
--------------------------------------------------------------------------------
Retail 3,401 3,862 -12 -10 10,581 10,630 0 -4 15,318
sales
--------------------------------------------------------------------------------
Wholesal 6,755 7,638 -12 -25 19,851 19,923 0 -8 25,987
e sales
--------------------------------------------------------------------------------
Royaltie 467 107 989 311 811
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 24,590 26,811 -8 -15 68,171 68,061 0 -4 94,150
--------------------------------------------------------------------------------
Retail 13,632 13,672 0 -5 36,895 35,442 4 0 50,682
sales
--------------------------------------------------------------------------------
Wholesal 10,404 12,929 -20 -29 30,022 32,031 -6 -11 42,232
e sales
--------------------------------------------------------------------------------
Royaltie 554 211 163 180 1,254 587 113 112 1,237
s
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
Finland
Consumer confidence and purchasing power remained low in Finland. In the
January-September period, net sales fell by 1 percent to EUR 36,750 thousand
(37,196), which was due to a 16 percent decline in wholesale sales. The decline
was partly attributable to the postponement of deliveries of winter collections
from September to October. Moreover, wholesale sales in the comparison period
were increased by considerable nonrecurring promotional deliveries in the third
quarter. Retail sales grew by 6 percent due to an increase in discount-driven
sales by outlet stores and online shop in the second and third quarters. Retail
sales were also boosted by the new stores opened in 2014 and 2015 plus a pop-up
store opened at the Helsinki-Vantaa Airport for the summer season. Comparable
retail sales were up by 3 percent; at prime stores, comparable sales fell by 5
percent.
In the third quarter, retail sales rose by 4 percent due to growth in
discount-driven sales by outlet stores and online shop. Retail sales were also
boosted by the new stores opened in 2014 and 2015. Comparable retail sales were
on a par with the previous year; at prime stores, comparable sales fell by 6
percent. Wholesale sales declined by 31 percent. The decline was partly due to
the postponement of deliveries of winter collections from September to October.
Moreover, wholesale sales were boosted last year by considerable nonrecurring
promotional deliveries.
Scandinavia
Net sales in Scandinavia fell in the January-September period by 10 percent to
EUR 5,645 thousand (6,248). Net sales at comparable exchange rates declined by
6 percent. Retail sales in euros fell by 6 percent and at comparable exchange
rates by 3 percent.
Wholesale sales declined by 12 percent. The decline was partly due to the
postponement of deliveries of winter collections from September to October.
In the third quarter, retail sales in euros fell by 11 percent and wholesale
sales by 36 percent. The postponement of deliveries of winter collections to
October reduced wholesale sales.
EMEA
Net sales in EMEA grew in the January-September period by 4 percent to EUR
6,024 thousand (5,819). Wholesale sales rose by 9 percent due to growth in
deliveries to Belgium, the UAE and France. Wholesale sales in the UAE were
boosted by start-up stock deliveries for two retailer-owned stores. Retail
sales declined by 22 percent due to the closure of two stores in London in
November 2014 and in March 2015. Comparable retail sales were on a par with the
previous year.
In the third quarter, retail sales fell by 35 percent; comparable retail sales
fell by 4 percent. Wholesale sales declined by 22 percent as a result of a
downturn in deliveries to Belgium, Germany and the UK. The decline in wholesale
sales was also partly due to the postponement of deliveries of winter
collections from September to October.
North America
In North America, net sales grew by 14 percent to EUR 6,561 thousand (5,752).
Net sales at comparable exchange rates fell by 5 percent; both retail and
wholesale sales declined. The downturn in retail sales was due to the closure
of the Beverly Hills store in March and a 17 percent decline in sales in
comparable stores.
In the third quarter, retail sales in euros fell by 14 percent and at
comparable exchange rates by 27 percent. Sales were affected by construction
works and changes in the vicinity of some of the stores, which reduced customer
turnout. Also, the closure of the Beverly Hills store reduced total sales.
Wholesale sales at comparable exchange rates declined by 1 percent.
Asia-Pacific region
Net sales in the Asia-Pacific region grew by 1 percent to EUR 13,191 thousand
(13,046). Wholesale sales fell by 3 percent. The fall was partly due to the
postponement of deliveries of winter collections from September to October. In
the most important country in this market area, Japan, wholesale sales declined
by 9 percent, which was partially attributable to reduced restocking orders as
a result of an increase in sales tax in spring 2014. Retail sales (Australian
stores in Sydney and Melbourne) grew due to the additional sales of the store
opened at the Emporium mall in Melbourne in autumn 2014. Sales in comparable
stores fell in euro terms by 6 percent and in terms of the currency of sales by
7 percent. The opening of a new store close to the other store in Melbourne had
a negative impact on the trend in comparable retail sales.
In the third quarter, retail sales grew markedly due to the sales of the
Emporium store in Melbourne. Comparable retail sales in euros fell by 11
percent and in terms of the currency of sales by 5 percent. Wholesale sales
declined by 6 percent. Japanese wholesale sales fell by 20 percent. The fall in
wholesale sales was partly due to the postponement of deliveries of winter
collections from September to October.
FINANCIAL RESULT
In the January-September period of 2015, the Group's operating profit was EUR
197 thousand (3,646). Operating profit for the comparison period included EUR
669 thousand in nonrecurring expenses. The comparison period's operating profit
excluding nonrecurring items was EUR 4,315 thousand, and it was boosted by
considerable nonrecurring promotional deliveries in Finland in the third
quarter. Operating profit for the period under review was decreased by the
considerable expenses related to the closure of the Beverly Hills store during
the first quarter, a decline in wholesale sales in Finland, Scandinavia and the
Asia-Pacific region, a downturn in relative wholesale margins, a deterioration
in the profitability of retail sales in Finland occasioned by a fall in the
sales of prime stores, and an increase in design and marketing expenses.
Operating profit was improved, however, by an increase in royalty earnings in
North America during the first and third quarters and by the additional sales
of new stores.
In the July-September period of 2015, the Group's operating profit was EUR
1,228 thousand (4,875). The comparison period's operating profit was boosted by
considerable nonrecurring promotional deliveries. Operating profit for the
review period was decreased by a decline in wholesale sales in all market areas
except North America, a downturn in relative wholesale margins, and an increase
in design and marketing expenses. The decline in wholesale sales was partly due
to the postponement of deliveries of winter collections from September to
October. Operating profit was improved, however, by growth in discount-driven
sales by outlet stores and online shop in Finland and by the additional sales
of new stores.
Marketing expenses for the January-September were EUR 3,734 thousand (3,063) or
5 percent of consolidated net sales (4).
The Group's depreciation and impairments totalled EUR 3,338 thousand (3,208) or
5 percent of net sales (5).
In the January-September period of 2015, operating profit margin was 0.3
percent (5.4). The comparison period's operating profit margin excluding
nonrecurring items was 6.3 percent. In the July-September period, operating
profit margin was 5.0 percent (18.2).
Net financial expenses were EUR 386 thousand (net financial income 113) or 1
percent of net sales (0). Foreign exchange changes recorded in net financial
items amounted to EUR -187 thousand (350).
Result for the January-September period before taxes was EUR -189 thousand
(3,759). Result after taxes was EUR -394 thousand (2,864) and earnings per
share were EUR -0.05 (0.35).
BALANCE SHEET
The consolidated balance sheet total as of 30 September 2015 was EUR 47,573
thousand (48,768). Equity attributable to the equity holders of the parent
company was EUR 25,992 thousand (27,646) or EUR 3.21 per share (3.42).
Non-current assets at the end of September 2015 were EUR 16,955 thousand
(18,672).
At the end of the period under review, net working capital was EUR 16,406
thousand (17,901). Inventories were EUR 18,948 thousand (18,423).
CASH FLOW AND FINANCING
In the January-September period, cash flow from operating activities was EUR
746 thousand (3,545) or EUR 0.09 per share (0.44). Cash flow before cash flow
from financing activities was EUR -939 thousand (2,121).
In the July-September period, cash flow from operating activities was EUR 717
thousand (4,384) or EUR 0.09 per share (0.54). Cash flow before cash flow from
financing activities was EUR -178 thousand (495).
The Group's financial liabilities at the end of the period under review stood
at EUR 10,703 thousand (11,383).
At the end of the period under review, the Group's cash and cash equivalents
amounted to EUR 3,586 thousand (2,706). In addition, the Group had unused
committed long- and short-term credit lines of EUR 11,824 thousand (18,057).
The Group's equity ratio at the end of the period was 54.7 percent (56.8).
Gearing was 27.4 percent (31.4).
INVESTMENTS
The Group's gross investments in the January-September period were EUR 1,685
thousand (1,424) or 2 percent of net sales (2). Most of the investments were
devoted to IT systems and building store premises.
PERSONNEL
In the January-September period of 2015, the number of employees averaged 460
(473). At the end of the period, the Group had 444 (456) employees, of whom 114
(121) worked outside Finland. The number of employees working outside Finland
was broken down as follows: Scandinavia 42 (40), EMEA 8 (13), North America 45
(49) and Asia-Pacific 19 (19). The personnel at company-owned stores totalled
223 (233) at the end of the period.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of September 2015, 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 7,111 shareholders at the
end of the period under review (7,171). Of the shares, 21.6 percent were owned
by nominee-registered or non-Finnish holders (21.8). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President of the company was 1,325,806 (1,328,598), representing 16.5 percent
of the number and voting rights of the company's shares (16.4).
Information about the largest shareholders can be found on the company's
website company.marimekko.com under Investors/Share Information.
Share trading and the company's market capitalisation
In the January-September period of 2015, a total of 511,220 Marimekko shares
were traded, representing 6.4 percent of the company shares outstanding. The
total value of Marimekko's share turnover was EUR 5,136,986. The lowest price
of the share was EUR 8.20, the highest was EUR 10.94 and the average price was
EUR 10.05. At the end of September, the closing price of the share was EUR
8.48. The company's market capitalisation on 30 September 2015 was EUR
68,599,893 (78,873,698).
Authorisations
At the end of the period, Marimekko's 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.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The major strategic risks for the near future are associated with the weakening
of consumer confidence, overall economic trends, and the consequent uncertainty
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 retail, and changes in Marimekko's design and product
assortment.
Marimekko products are sold in approximately 40 countries. The 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 the 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. The
long-term problems in the global economy continue 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 e-commerce. In recent
years, expansion has called for larger or totally 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, partnership agreements, the
choice of partners as well as store lease agreements in the company's key
market areas 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. Agreements with freelance designers
and fees paid to designers based on these agreements are an essential part of
the management of the 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. 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
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 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, changes in
exchange rates (particularly the U.S. dollar, Swedish krona and Australian
dollar), and taxation may have an impact on the company's financial status.
MARKET OUTLOOK AND GROWTH TARGETS IN 2015
Overall uncertainty in the global economy is forecast to continue, and this may
impact consumers' purchasing behaviour in all of Marimekko's market areas.
In particular, the situation in the retail trade in Marimekko's important
domestic market, Finland, has remained difficult. Deteriorating consumer
confidence, declining purchasing power and rising unemployment cast a shadow
over Marimekko's retail sales expectations for 2015 and are reflected in
retailers' increasing reluctance to replenish their stocks. In the
January-September period, comparable retail sales rose by 3 percent due to
dynamic growth in discount-driven sales by outlet stores and the online store
during the second and third quarters. In prime stores, comparable sales fell by
5 percent. Since the end of the period under review, comparable retail sales
have risen by around 6 percent; sales by prime stores have fallen by roughly 11
percent. Changes in the array of stores in central Helsinki during the autumn
will result in losses of retail sales in the final quarter: In September,
Marimekko opened its own store in the renovated Forum mall and the Finnish
flagship store closed for the period of its relocation. The new flagship store
will be opened on Mikonkatu street in mid-November. No major nonrecurring
promotional deliveries which would support wholesale sales as they did in 2014
are in sight for the remainder of the year.
The Asia-Pacific region, the company's second-biggest market, plays an
important part in Marimekko's internationalisation, and the company sees a
growing demand for its products in this area in the long run. In recent years,
new markets have been opened up in China, Hong Kong and Taiwan, and the number
of Marimekko stores in the region has more than doubled to nearly 50. In 2015,
new markets have been opened up in Singapore and Thailand (Bangkok). In
Australia, the outlook is bright, and Marimekko's retail sales have developed
well, even better than forecast. Although sales in these countries are expected
to grow, their combined share of Marimekko's net sales is still relatively
small compared with Japan, which is clearly the most important single country
for the company in this area. The appreciation of the euro against the yen and
an increase in sales tax which came into force in spring last year have
impacted negatively on Marimekko's Japanese wholesale sales. This year and in
the years ahead, sales in Japan are forecast to develop more modestly than in
past years. Potential sales growth in the Japanese market will increasingly be
based on organic growth which will be supported by the development of the
operations of Marimekko stores in Japan and by changes that will be made in the
company's product range. New stores will be opened at an estimated rate of a
few per year. In the January-September period, wholesale sales in Japan fell by
9 percent, and sales for this year as a whole are also forecast to deteriorate
markedly relative to 2014. Mainly due to the downturn in Japanese sales,
wholesale sales for the entire market area are estimated to decline this year
compared to 2014.
In the United States, the economy as a whole has been growing, but Marimekko's
comparable foreign-currency-denominated retail and wholesale sales in North
America are estimated to fall in 2015 on the basis of a weaker than expected
trend in sales during the January-September period. The appreciation of the US
dollar is, however, expected to boost sales markedly in euro terms.
Nevertheless, owing to the loss-making nature of Marimekko's North American
business, the appreciation of the dollar will impact negatively on the
company's operating result for 2015. The Beverly Hills store was closed in
March, which resulted in substantial expenses during the first quarter. Royalty
income has grown markedly in the market area in 2015 due to a licensing
agreement concluded with a North American company. No significant royalty
income is expected from the North American market area during the last quarter.
Sales expectations in Scandinavia are modest. Wholesale and retail sales for
the whole year 2015 are forecast to decline.
In EMEA, sales for 2015 are boosted by deliveries to two new stores opened
during the spring in Dubai in the UAE and by growth in wholesale deliveries to
a few major retailers in Belgium and France.
In 2015, the main thrust in expansion has been on openings of retailer-owned
Marimekko stores. The aim is to open a total of 10-20 new Marimekko stores and
shop-in-shops. Of these, 1-3 would be company-owned. In the January-September
period, 12 new stores and shop-in-shops were opened, of which 2 were
company-owned.
The expenses of marketing measures scheduled for 2015 are expected to be higher
than last year, meaning more than EUR 5 million (4.7). The total investments
for 2015 of the Marimekko Group are estimated as being in excess of EUR 3
million (2.1). The majority of investments are directed at building new store
premises and purchasing store fixtures as well as developing IT systems to
support business operations.
FINANCIAL GUIDANCE FOR 2015
The full-year estimate for 2015 is unchanged: Based on the market outlook,
estimated sales development in the company's market areas, especially in
Finland, the company's growth targets as well as other estimated factors, the
Marimekko Group's year 2015 net sales are forecast to be at the same level as
in 2014 or lower. Operating profit excluding nonrecurring items in 2015 is
estimated to be lower than in 2014.
Helsinki, 5 November 2015
MARIMEKKO CORPORATION
Board of Directors
INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2015: 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 for the Group
Segment information
Net sales by market area
Net sales by product line
Quarterly development of net sales and earnings
ACCOUNTING PRINCIPLES
This interim report was prepared in accordance with IAS 34. Marimekko has
applied the same accounting principles as were applied in the 2014 financial
statements in this interim report, although at the start of the financial year
the company adopted certain new and amended IFRS standards as described in the
financial statements for 2014. 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 September
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) 7-9/20 7-9/20 1-9/201 1-9/201 1-12/20
15 14 5 4 14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 24,590 26,811 68,171 68,061 94,150
--------------------------------------------------------------------------------
Other operating income 59 51 169 162 230
--------------------------------------------------------------------------------
Increase or decrease in inventories 853 -395 1,041 336 -692
of completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -9,816 -9,199 -25,123 -24,383 -32,767
--------------------------------------------------------------------------------
Employee benefit expenses -5,952 -5,555 -19,264 -18,724 -25,543
--------------------------------------------------------------------------------
Depreciation and impairments -1,219 -1,050 -3,338 -3,208 -4,283
--------------------------------------------------------------------------------
Other operating expenses -7,288 -5,788 -21,459 -18,597 -25,503
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING PROFIT 1,228 4,875 197 3,646 5,592
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 3 328 23 374 252
--------------------------------------------------------------------------------
Financial expenses -268 -100 -409 -261 -360
--------------------------------------------------------------------------------
-264 228 -386 113 -108
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 964 5,103 -189 3,759 5,485
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -353 -1,101 -206 -895 -1,370
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 611 4,002 -394 2,864 4,114
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 611 4,002 -394 2,864 4,114
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.08 0.49 -0.05 0.35 0.51
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 1-12/2
15 14 15 14 014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 611 4,002 -394 2,864 4,114
--------------------------------------------------------------------------------
Items that could be reclassified to
profit or loss at a future point in
time
--------------------------------------------------------------------------------
Change in translation difference 45 -176 172 -185 -36
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 656 3,826 -222 2,679 4,078
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 656 3,826 -222 2,679 4,078
holders of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2015 30.9.2014 31.12.2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2,221 1,469 1,561
--------------------------------------------------------------------------------
Tangible assets* 14,718 17,187 16,702
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16 16
--------------------------------------------------------------------------------
16,955 18,672 18,279
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,948 18,423 17,558
--------------------------------------------------------------------------------
Trade and other receivables 7,974 8,967 7,286
--------------------------------------------------------------------------------
Current tax assets 110 - -
--------------------------------------------------------------------------------
Cash and cash equivalents 3,586 2,706 4,079
--------------------------------------------------------------------------------
30,618 30,096 28,924
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 47,573 48,768 47,203
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 98 -223 -74
--------------------------------------------------------------------------------
Retained earnings 17,352 19,327 20,577
--------------------------------------------------------------------------------
Shareholders' equity, total 25,992 27,646 29,045
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities 62 60 4
--------------------------------------------------------------------------------
Provisions 190 190 190
--------------------------------------------------------------------------------
Financial liabilities 7,176 4,943 3,696
--------------------------------------------------------------------------------
Finance lease obligations 3,272 3,276 3,261
--------------------------------------------------------------------------------
10,700 8,469 7,150
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 10,626 9,071 10,053
--------------------------------------------------------------------------------
Current tax liabilities 418 778
--------------------------------------------------------------------------------
Finance liabilities - 3,000 -
--------------------------------------------------------------------------------
Finance lease liabilities 255 164 176
--------------------------------------------------------------------------------
10,880 12,654 11,008
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 21,581 21,122 18,158
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 47,573 48,768 47,203
--------------------------------------------------------------------------------
* At the end of the review period, tangible assets included assets acquired
under finance lease agreements in the amount of EUR 3,354 thousand (30
September 2014: 3,312; 31 December 2014: 3,298).
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 1-12/201
5 4 4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -394 2,864 4,114
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 3,338 3,208 4,283
--------------------------------------------------------------------------------
Other non-cash transactions 89 89
--------------------------------------------------------------------------------
Financial income and expenses 386 -113 108
--------------------------------------------------------------------------------
Taxes 206 895 1,370
--------------------------------------------------------------------------------
Cash flow before change in working capital 3,535 6,943 9,965
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -2,435 -2,764 45
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -897 -1,811 -460
non-interest-bearing trade receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -1,390 -317 547
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -148 -636 -42
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial 1,100 4,179 10,010
items and taxes
--------------------------------------------------------------------------------
Paid interest and payments on other financial -221 -260 -360
expenses
--------------------------------------------------------------------------------
Interest received 23 23 45
--------------------------------------------------------------------------------
Taxes paid -156 -397 156
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 746 3,545 9,851
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -1,685 -1,424 -2,063
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -1,685 -1,424 -2,063
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term loans drawn 3,000 -
--------------------------------------------------------------------------------
Long-term loans drawn 3,481 -
--------------------------------------------------------------------------------
Long-term loans paid -3,291 -4,538
--------------------------------------------------------------------------------
Finance lease liabilities paid -203 -102 -150
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES 446 -2,415 -6,710
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -493 -295 1,078
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 4,079 3,001 3,001
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 3,586 2,706 4,079
--------------------------------------------------------------------------------
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 -38 18,485 26,989
equity
1 January 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 2,864 2,864
period
--------------------------------------------------------------------------------
Translation -185 -185
differences
--------------------------------------------------------------------------------
Total -185 2,864 2,679
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -223 19,327 27,646
equity
30 September 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
KEY FIGURES
1-9/2015 1-9/2014 Change, % 1-12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.05 0.35 -114 0.51
--------------------------------------------------------------------------------
Equity per share, EUR 3.21 3.42 -6 3.59
--------------------------------------------------------------------------------
Return on equity (ROE), % -1.9 14.0 14.7
--------------------------------------------------------------------------------
Return on investment (ROI), % 0.1 13.8 15.6
--------------------------------------------------------------------------------
Equity ratio, % 54.7 56.8 61.6
--------------------------------------------------------------------------------
Gearing, % 27.4 31.4 10.5
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 1,685 1,424 18 2,063
--------------------------------------------------------------------------------
Gross investments, % of net sales 2 2 2
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 36,099 35,041 3 34,310
--------------------------------------------------------------------------------
Average personnel 460 473 -3 473
--------------------------------------------------------------------------------
Personnel at the end of the period 444 456 -3 479
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-9/2015 1-9/2014 Change, % 1-12/2014
------------------------------------------------------------
------------------------------------------------------------
Marimekko business
------------------------------------------------------------
Net sales 68,171 68,061 0 94,150
------------------------------------------------------------
Operating result 197 3,646 -95 5,592
------------------------------------------------------------
Assets 47,573 48,768 -2 47,203
------------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 7-9/ 7-9/ Change Change 1-9/ 1-9/ Change Change 1-12/
1,000) 2015 2014 , , 2015 2014 , , 2014
% % % %
In In
curren curren
cy cy
terms terms
--------------------------------------------------------------------------------
Finland 13,966 15,203 -8 -8 36,750 37,196 -1 -1 52,034
--------------------------------------------------------------------------------
Retail 10,230 9,809 4 4 26,314 24,812 6 6 35,363
sales
--------------------------------------------------------------------------------
Wholesal 3,649 5,290 -31 -31 10,171 12,108 -16 -16 16,245
e sales
--------------------------------------------------------------------------------
Royaltie 87 103 -16 -16 264 276 -4 -4 425
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandina 1,853 2,365 -22 -18 5,645 6,248 -10 -6 8,452
via
--------------------------------------------------------------------------------
Retail 1,218 1,374 -11 -8 3,540 3,767 -6 -3 5,151
sales
--------------------------------------------------------------------------------
Wholesal 635 990 -36 -34 2,105 2,481 -15 -12 3,301
e sales
--------------------------------------------------------------------------------
Royaltie 0 0 0 0 0
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 1,611 2,080 -23 -23 6,024 5,819 4 4 7,554
--------------------------------------------------------------------------------
Retail 245 379 -35 -35 857 1,096 -22 -22 1,509
sales
--------------------------------------------------------------------------------
Wholesal 1,299 1,664 -22 -22 5,029 4,611 9 9 5,882
e sales
--------------------------------------------------------------------------------
Royaltie 67 37 78 78 138 111 24 24 162
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,404 2,201 9 -7 6,561 5,752 14 -5 8,584
America
--------------------------------------------------------------------------------
Retail 1,351 1,579 -14 -27 4,161 4,221 -1 -19 5,983
sales
--------------------------------------------------------------------------------
Wholesal 652 552 18 -1 1,549 1,336 16 -3 1,957
e sales
--------------------------------------------------------------------------------
Royaltie 401 70 852 195 644
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pac 4,755 4,963 -4 -8 13,191 13,046 1 0 17,527
ific
--------------------------------------------------------------------------------
Retail 587 530 11 22 2,023 1,546 31 30 2,675
sales
--------------------------------------------------------------------------------
Wholesal 4,168 4,432 -6 -13 11,168 11,496 -3 -6 14,847
e sales
--------------------------------------------------------------------------------
Royaltie 0 0 0 5 -100 5
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internat 10,623 11,608 -8 -17 31,421 30,864 2 -5 42,116
ional
sales,
total
--------------------------------------------------------------------------------
Retail 3,401 3,862 -12 -10 10,581 10,630 0 -4 15,318
sales
--------------------------------------------------------------------------------
Wholesal 6,755 7,638 -12 -25 19,851 19,923 0 -8 25,987
e sales
--------------------------------------------------------------------------------
Royaltie 467 107 989 311 811
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 24,590 26,811 -8 -15 68,171 68,061 0 -4 94,150
--------------------------------------------------------------------------------
Retail 13,632 13,672 0 -5 36,895 35,442 4 0 50,682
sales
--------------------------------------------------------------------------------
Wholesal 10,404 12,929 -20 -29 30,022 32,031 -6 -11 42,232
e sales
--------------------------------------------------------------------------------
Royaltie 554 211 163 180 1,254 587 113 112 1,237
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, % 1-12/
2015 2014 2015 2014 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Fashion 10,414 10,031 4 28,573 26,665 7 36,256
--------------------------------------------------------------------------------
Home 8,286 10,509 -21 23,517 26,529 -11 37,703
--------------------------------------------------------------------------------
Bags & 5,890 6,271 -6 16,081 14,867 8 20,191
accessories
--------------------------------------------------------------------------------
TOTAL 24,590 26,811 -8 68,171 68,061 0 94,150
--------------------------------------------------------------------------------
QUARTERLY DEVELOPMENT OF NET SALES AND EARNINGS
(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, EUR 0.08 0.01 -0.14 0.15
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 7-9/2014 4-6/2014 1-3/2014 10-12/2013
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 26,811 21,874 19,376 25,465
-----------------------------------------------------------------
Operating result 4,875 519 -1,748 -565
-----------------------------------------------------------------
Earnings per share, EUR 0.49 0.05 -0.19 -0.07
-----------------------------------------------------------------
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