Marimekko Q3 2025 slides: Net sales up 8%, operating profit jumps 14%

Finnish design house Marimekko (HEL:MEKKO) delivered robust third-quarter results, reporting an 8% increase in net sales and a 14% jump in comparable operating profit, according to the company's Q3 2025 presentation released on October 31. Despite the strong performance, Marimekko's stock remained unchanged at €13.12, reflecting cautious investor sentiment amid broader economic uncertainties.

Quarterly Performance Highlights

Marimekko's net sales rose to €50.8 million in Q3 2025, compared to €47.2 million in the same period last year. The growth was primarily driven by increased wholesale sales both in Finland and international markets. The company's comparable operating profit improved by 14% to €12.7 million, representing a robust margin of 24.9% of net sales, up from 23.5% in Q3 2024.

As shown in the following comprehensive table of key financial metrics:

For the first nine months of 2025, Marimekko reported cumulative net sales of €134.8 million, a 5% increase from €128.6 million in the comparable period. The company's international sales grew by 8% during this period, while sales in Finland increased by 3%.

The quarterly net sales growth is illustrated in this bar chart:

The cumulative net sales for the first nine months show consistent growth across most regions:

Regional Performance and International Expansion

Marimekko's international expansion strategy continues to yield results, with international sales growing 8% in both the third quarter and the nine-month period. The Asia-Pacific region remains the company's largest international market, accounting for 53% of international sales in the first nine months of 2025.

The following chart breaks down international sales by market area and product line:

The company's global retail footprint has expanded to 169 stores, with the Asia-Pacific region hosting the largest number (68), followed by Finland (90). During Q3, Marimekko opened a new store in Taipei and seven pop-up stores, primarily in Asia. After the reporting period, the company celebrated the opening of flagship stores in Hong Kong and Paris, strengthening its presence in key fashion capitals.

"We firmly believe that the winning brands of the future are determined in the more challenging market environments," said CEO Tiina Alahuhta-Kasko during the earnings call, highlighting the strategic importance of the Paris flagship store for expanding Marimekko's European presence.

Product Portfolio Evolution

Marimekko's product mix continues to evolve, with Bags & Accessories growing to represent 38% of international sales in the first nine months of 2025, up from 34% in the comparable period. The Home category remains the largest at 42%, while Fashion accounts for 21% of sales.

The company's brand sales totaled €286.9 million in January-September 2025, with 65% generated outside Finland. The regional distribution of brand sales is visualized in the following chart:

During the quarter, Marimekko launched collaboration collections with Artek and Kalevala Jewelry, which helped increase brand visibility globally. The company also showcased its collections at fashion shows in Copenhagen and Bangkok, building brand desirability and awareness.

Financial Position and Cash Flow

Marimekko's comparable operating profit for Q3 2025 represented 24.9% of net sales, demonstrating the company's strong profitability. The quarterly operating profit growth is illustrated in this chart:

For the first nine months of 2025, the cumulative operating profit grew by 4% to €23.5 million, maintaining a healthy margin of 17.5% of net sales:

Cash flow from operating activities for the first nine months of 2025 was €12.1 million, down 18% from €14.7 million in the comparable period. This decrease was primarily due to changes in working capital, particularly increased inventories and decreased current liabilities. The company's balance sheet remains strong with an equity ratio of 57.9%.

Outlook and Guidance

Looking ahead, Marimekko expects net sales to grow in 2025 compared to the previous year (€182.6 million in 2024). The company forecasts a comparable operating profit margin of approximately 16-19% for the full year 2025, compared to 17.5% in 2024.

However, Marimekko acknowledges several uncertainties that could impact its performance, including:

• Global economic uncertainties related to geopolitical tensions and trade relations
• Increasing tariffs, particularly in the US market
• Possible disruptions in production and logistics chains
• Weak consumer confidence in key markets, especially Finland
• Expected significant decrease in licensing income compared to the record levels of 2024

The company plans to open approximately 10-15 new stores and shop-in-shops in 2025, with most openings targeted for Asia. Despite near-term challenges, Marimekko remains committed to its long-term growth strategy, focusing on international expansion and maintaining its strong position in the Finnish market.

"We develop our business with a long-term view and aim to continue scaling our profitable growth in the upcoming years," the company stated in its presentation, emphasizing its resilience in navigating challenging market environments.

Full presentation:

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