Marimekko increases its earnings estimates
Finnish textiles and lifestyle brand Marimekko on Monday raised its outlook for this year's operating profit, an improvement on its August outlook. It cited stronger-than-expected sales growth and improving prospects in Finland, as well as “better-than-estimated relative gross margin development”.
According to the new estimate, comparable operating profit this year is expected to be up at around €17 million, from €15 million a year earlier. Net sales are also expected to be higher than last year, in line with August’s expectations.
Marimekko's interim report for the January-September period will be issued on Wednesday 6 November.
The last we heard from the company was in May when it had good news as it reported Q1 net sales that rose 13% and its comparable operating profit doubled. But the figures were artificially boosted by the timing of Asia Pacific wholesale deliveries, as well as being helped by stronger Finnish retail sales.
That Finnish growth has clearly continued and its focus on international growth seems to be paying off too. The firm has expanded its e-tail ops and this is helping it in the Asia region that’s so important to the growth prospects of many European firms.
It’s encouraging that the company has increased its earnings estimate as it had earlier said that investment in China would add to its costs and therefore dent profits this year.
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