Marimekko Q2 2025 slides: Sales up 2%, international expansion continues despite challenges

Introduction & Market Context

Finnish lifestyle design company Marimekko Oyj (HEL:MEKKO) released its half-year financial report on August 14, 2025, showing modest growth amid mixed regional performance. The company’s stock closed at €13.06 on August 13, with a slight increase of 0.77% ahead of the earnings release.

The presentation revealed a 2% increase in Q2 net sales to €44.5 million, driven primarily by retail sales growth, while the company continues to expand its global footprint through strategic collaborations and new store openings, particularly in Asia.

Quarterly Performance Highlights

Marimekko reported Q2 net sales of €44.5 million, up 2% from €43.7 million in the same period last year. The company’s comparable operating profit slightly improved to €6.5 million (14.6% of net sales) from €6.4 million (14.6%) in Q2 2024.

As shown in the following detailed financial table, the company maintained stable profitability metrics despite challenging market conditions:

Regional performance varied significantly, with Europe showing strong 16% growth while Asia-Pacific declined by 8%. Finnish sales increased by 3%, benefiting from 4% retail growth, though wholesale sales decreased by 2%. Overall international sales grew by just 1% compared to Q2 2024.

The following chart breaks down net sales by region, highlighting these geographic performance differences:

For the first half of 2025, Marimekko’s cumulative net sales increased by 3% to €84.1 million, with international sales growing by 7%. The European market was particularly strong with 34% growth, while Asia-Pacific sales declined by 5%.

The company’s product mix showed bags and accessories gaining importance, representing 37% of sales in H1 2025 compared to 33% in the same period last year, while home products declined from 45% to 42% of the mix.

Strategic Initiatives

Marimekko continues to expand its global retail footprint, with the Asia-Pacific region hosting the largest number of stores. During Q2, the company opened three new Marimekko stores and eight pop-ups, primarily in Asia, furthering its international growth strategy.

The following chart illustrates the company’s global retail presence across different regions:

Brand collaborations formed a significant part of Marimekko’s strategy in Q2. The company launched a limited-edition collection with global footwear brand Crocs that generated widespread customer interest. Additional collaborations included partnerships with Blue Bottle Coffee to build awareness in major Asian cities and the USA, a furniture collection with Artek presented at Copenhagen’s 3daysofdesign event, and a capsule collection with artist Laila Gohar featuring Maija Isola’s prints.

Marimekko brand sales amounted to €187.0 million in H1 2025, slightly down from €190.5 million in the comparable period. International markets accounted for 67% of brand sales, with the following breakdown by region:

Forward-Looking Statements

Marimekko maintained its financial guidance for 2025, expecting net sales to grow from the previous year’s €182.6 million. The company projects a comparable operating profit margin of approximately 16-19%, compared to 17.5% in 2024.

The following chart shows the comparable operating profit trend, highlighting the typical seasonality of Marimekko’s business with stronger performance expected in the second half of the year:

Management noted several uncertainties that could impact performance, including geopolitical tensions, trade relations, and potential disruptions in production and logistics chains. The company specifically mentioned that increasing tariffs in the US have a direct impact on only a small part of its business, and it has taken measures to mitigate that impact.

In Finland, sales are expected to be impacted by the weak general economy and lower wholesale sales, while in Asia-Pacific, net sales are projected to increase with approximately 10-15 new partner-owned stores and shop-in-shops planned to open.

Detailed Financial Analysis

While Q2 showed modest growth, the first half operating profit declined to €10.6 million from €11.2 million in the previous year. Comparable operating profit for H1 was €10.9 million (13.0% of net sales) compared to €11.6 million (14.2%) in H1 2024.

The cumulative operating profit trend shows this slight decline:

Marimekko’s balance sheet remains solid with an equity ratio of 54.1% and gearing of 33.9%. The company’s net debt to EBITDA ratio stands at 0.48 (rolling 12 months), indicating a healthy financial position.

However, cash flow from operating activities for H1 2025 decreased significantly to €0.7 million from €10.3 million in the comparable period, primarily due to changes in working capital as inventory levels increased.

The company’s shareholder base remains diverse with 37,909 shareholders. PowerBank Ventures Oy (controlled by Mika Ihamuotila) is the largest shareholder with a 12.52% stake, followed by pension insurance companies Ilmarinen (4.87%) and Varma (4.75%).

Despite the mixed performance in the first half, Marimekko’s strategic focus on international expansion and brand collaborations positions the company to potentially benefit from the traditionally stronger second half of the year, though economic uncertainties and regional challenges remain significant factors to monitor.

Full presentation:

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