Brief: Marimekko Q3 Operating Profit Up At EUR 10.5 Mln

Marimekko Oyj

04/11/2020 06:10

Nov 4 (Reuters) - Marimekko Oyj  MMO1V.HE :
    * REG-INTERIM REPORT OF MARIMEKKO CORPORATION, 1 JANUARY–30
SEPTEMBER 2020: MARIMEKKO INCREASED ITS NET SALES AND IMPROVED
ITS RESULTS IN THE THIRD QUARTER IN CHALLENGING CIRCUMSTANCES
THANKS TO WHOLESALE SALES AND ADJUSTMENT MEASURES
    * Q3 NET SALES EUR 38.0 MILLION VERSUS EUR 34.5 MILLION YEAR
AGO
    * CORONAVIRUS PANDEMIC CONTINUES TO HEAVILY IMPACT FASHION
INDUSTRY AND SPECIALTY RETAIL SECTOR ALL OVER WORLD
    * Q3 OPERATING PROFIT EUR 10.5 MILLION VERSUS EUR 7.8
MILLION YEAR
AGO
    * MARIMEKKO GROUP'S NET SALES FOR 2020 ARE EXPECTED TO BE
LOWER
THAN IN PREVIOUS YEAR AND COMPARABLE OPERATING PROFIT IS
ESTIMATED TO BE APPROXIMATELY AT SAME LEVEL AS OR LOWER THAN
YEAR BEFORE
    * NET SALES WERE BOOSTED ESPECIALLY BY A FAVORABLE TREND IN
WHOLESALE SALES IN FINLAND AND EMEA
    * WHOLESALE SALES AND PROMPT ADJUSTMENT MEASURES HELPED
MARIMEKKO
INCREASE ITS NET SALES AND IMPROVE ITS RESULTS IN A CHALLENGING
OPERATING ENVIRONMENT
    * FIXED COSTS WERE ALSO REDUCED BY SUBSIDIES GRANTED IN
VARIOUS
COUNTRIES TO MITIGATE NEGATIVE BUSINESS IMPACTS OF CORONAVIRUS
PANDEMIC
    * GUIDANCE FOR 2020: FULL-YEAR LOGISTICS COSTS TO INCREASE
NOTICEABLY ON 2019.
    * CONTINUED STRONG ONLINE SALES SUPPORTED RETAIL SALES AS
PANDEMIC
KEPT AFFECTING CUSTOMER NUMBERS OF BRICK-AND-MORTAR STORES.
    * A DECLINE IN RELATIVE SALES MARGIN, WHICH WAS LARGELY DUE
TO
HIGHER LOGISTICS COSTS RESULTING FROM AN INCREASE IN ONLINE
SALES, HAD A WEAKENING IMPACT ON RESULTS.
    * WE WILL LAUNCH OUR REVAMPED ONLINE STORE IN EARLY 2021
    * LICENSING INCOME IN 2020 IS FORECAST TO BE HIGHER THAN IN
PREVIOUS YEAR THANKS TO BETTER-THAN-EXPECTED ESTIMATED
DEVELOPMENT

Source text for Eikon:  ID:nGNE7qjJX8 
Further company coverage:  MMO1V.HE 

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