• Q4 Net Sales: Increased by 7% to EUR 54 million.
• Q4 Comparable Operating Profit: Improved by 12% to EUR 9.3 million, equalling 17.1% of net sales.
• Full Year Net Sales: Increased by 5% to EUR 182.6 million.
• Full Year Comparable Operating Profit Margin: 17.5%.
• International Sales Growth: Increased by 13% in Q4.
• Asia Pacific Sales Growth: Net sales increased by 11% in Q4.
• Retail Sales Growth: Increased by 12% in Q4.
• Wholesale Sales: Declined by 1% in Q4.
• Licensing Income: Increased by 11% for the full year.
• Store Network: 168 stores globally, with 91 in the Asia Pacific region.
• Dividend Proposal: Regular dividend of EUR 0.40 and an extraordinary dividend of EUR 0.25 for 2024.
• 2025 Financial Guidance: Net sales expected to grow; comparable operating profit margin estimated at 16% to 19%.

• Warning! GuruFocus has detected 1 Warning Sign with FRA:N97.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marimekko Oyj (FRA:N97) achieved a new quarterly record high in net sales during Q4 2024, with a 7% increase totaling EUR 54 million.
• The company's international sales grew by 13% in Q4, with significant contributions from both retail and wholesale sectors.
• Marimekko Oyj's comparable operating profit improved by 12% in Q4, reaching EUR 9.3 million, equating to 17.1% of net sales.
• The Asia Pacific region, Marimekko Oyj's second-largest market, saw an 11% increase in net sales, driven by a 25% growth in retail sales.
• The company successfully launched a new e-commerce platform, enhancing its digital presence and contributing to the growth of online sales.

Negative Points

• Higher logistic costs negatively impacted the relative sales margin in Q4 2024.
• Fixed costs increased due to higher personnel and marketing expenses, affecting the operating profit.
• The company anticipates lower licensing income in 2025 compared to the record levels of 2024.
• Non-recurring promotional deliveries in Finnish wholesale are expected to be significantly lower in 2025, impacting net sales.
• Global economic uncertainties, including geopolitical tensions and cost inflation, pose risks to consumer confidence and purchasing power, potentially affecting Marimekko Oyj's business in 2025.

Q & A Highlights

Q: How do you see the role of digital channels and digital customer experience affecting results in 2024 and going forward? A: Tiina Alahuhta-Kasko, President & CEO, explained that the digital business, particularly online sales, continued to grow in Q4 2024. The company has been strategically increasing the importance of online commerce and aims to create seamless omnichannel experiences for customers. The new e-commerce platform update is part of efforts to better serve customers.

Q: Why did marketing expenses decrease in Q4 2024 compared to the previous year, despite the Unikko anniversary? A: Tiina Alahuhta-Kasko noted that the Unikko anniversary was celebrated throughout the year, leading to variations in quarterly marketing expenses. The overall marketing costs for 2025 are expected to increase as part of the company's growth strategy.

Q: Why not invest even more in marketing? Would there be diminishing returns? A: Tiina Alahuhta-Kasko stated that Marimekko aims for sustainable, profitable growth and believes they have found a good balance in fueling growth. Marketing plays a strategic role in the consumer and brand business, and they plan to increase marketing spend in 2025.

Q: What contributed to the significant sales growth in Scandinavia in Q4 2024? A: Tiina Alahuhta-Kasko attributed the growth to strategic actions such as launching a flagship store in Copenhagen, revamping the Stockholm store, and establishing a presence at Copenhagen Fashion Week. These efforts, along with e-commerce and wholesale development, have strengthened Marimekko's brand presence in the region.

Q: What are the expectations for the Finnish market in 2025, given the strong retail sales in 2024? A: Tiina Alahuhta-Kasko expressed pride in the development of omnichannel retail sales, which demonstrate competitiveness and consumer desirability. While general statistics show a weak market, any improvement in macro sentiment and consumer confidence would be welcomed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.