Marimekko improves its earnings guidance for 2021, net sales estimate unchanged

Marimekko Corporation, Inside Information, 23 September 2021 at 8.50 a.m.

Marimekko improves its earnings guidance for 2021, net sales estimate unchanged

In its Half-year Financial Report published on 19 August 2021, Marimekko estimated that the Group's net sales for 2021 would be higher than in the previous year (2020: EUR 123.6 million) and comparable operating profit margin would be approximately on a par with or higher than in the previous year (2020: 16.3 percent).

Marimekko now specifies its earlier estimate of comparable operating profit margin development in 2021 and removes the lower end of the guidance range. According to the new estimate, the comparable operating profit margin is expected to be higher than in the previous year. The uncertainties related to the pandemic situation concerning the rest of the year being reduced from previously expected contributed to the improved estimate.

The Group’s net sales estimate given in the Half-year Financial Report remains unchanged. The revised financial guidance for 2021 in full is as follows: the Marimekko Group's net sales for 2021 are expected to be higher than in the previous year (2020: EUR 123.6 million). Comparable operating profit margin is estimated to be higher than in the previous year (2020: 16.3 percent).

Because of the seasonal nature of Marimekko’s business, the major portion of the company’s euro-denominated net sales and earnings are traditionally generated during the second half of the year. The company continues to estimate that the relative growth of the net sales, however, will slow down during the second half of 2021 as the coronavirus pandemic had an exceptionally negative effect on the net sales during the first six months of 2020.

However, the instability caused by the coronavirus pandemic in Marimekko’s markets continues, and therefore there are still significant uncertainties associated with the trend in the company’s net sales and earnings. The pandemic situation has led to disruptions in global supply chains. Marimekko has also experienced some coronavirus related supply chain disruptions, which have resulted in delivery delays. If the disruptions continue, they can impact the availability of products during the rest of the year and consequently affect net sales and profitability. Furthermore, net sales and earnings also essentially depend on maintaining the operational reliability and efficiency of distribution centers and logistics in the exceptional situation. The uncertainties related to the coronavirus pandemic are described in more detail in the Half-year Financial Report.

Marimekko’s interim report for the January-September period will be issued on Wednesday 3 November 2021 at 8.00 a.m.

MARIMEKKO CORPORATION

Corporate Communications

Anna Tuominen

Tel.

DISTRIBUTION:

Nasdaq Helsinki Ltd

Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2020, brand sales of the products worldwide amounted to EUR 286 million and the company's net sales were EUR 124 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 420 people. The company’s share is quoted on Nasdaq Helsinki Ltd.