Afternoon, ladies and gentlemen. I'm the IRO of Marimekko Anatuominen, and it is my pleasure to welcome you to hear more about our Q2 results. We will first hear a presentation from our President and CEO, Tina Allahutokasko. And after that, Tina and our CFO, Elin Ankar, will answer your questions. Tina, go ahead.
Thank you, Anna. Good afternoon. It's again time to look at our performance in the Q2.5 year in 2020. So when we look at the overall result in a very, very difficult circumstance, We can say that we achieved good performance despite a decline in net sales caused by the coronavirus pandemic as we were swift to adjust our operations to the new reality. Overall, one can say that the coronavirus pandemic is the deepest and worst crisis in decades that the global fashion industry and specialty retail has faced.
And during the Q2, also the majority of the Marameco stores around the world were temporarily closed because of the pandemic. However, thanks to our loyal customers and to our highly competent personnel with wholesale, strong online sales and licensing income, we were able to restrict the downfall of our net sales under the period under the review. The substantial growth in online sales to a large extent offset the lost sales from the company owned retail stores. As said, the majority of the Maremeco owned stores were closed for the majority part of the second quarter. Due to the spiked demand in our online store, in the early part of the year, we confronted some difficulties in our logistics.
But after the period under review, we were able to normalize the delivery times and the situation is under control. Also something that speaks on the behalf of the increasing international interest to the Marameco brand, we were able to achieve good licensing income, better than expected trend in licensing income in Asia Pacific region in the Q2. Marameco is known to have long term and strong partnerships with our wholesale clients, and they supported us during this difficult quarter, which also kept our wholesale sales in a good level. Then when we look at the overall impact on the profitability, as we were quick to draw up an ambitious savings plans and adjust our operations to the new reality created by the pandemic, we were able to keep the profitability at a good level, namely at 11.4% operating profit margin. During the quarter, we'll also be continuously working on the numerous measures to mitigate the coronavirus crisis.
And in addition to that, after the review period, due to the pandemic accelerating, many of the already underlying megatrends in disrupting the consumer behavior and intensifying the structural changes in the industry, such as digitalization, we have today announced that to strengthen our long term competitiveness in this new environment that we will initiate consultative negotiations in Finland and corresponding processes in our organization in Scandinavia, North America and Australia in order to reorganize and streamline our operations. We need to see in this new reality that our organization, competencies, job contents and ways of working best in the best way possible respond to the great disruption in the consumer behavior that is further accelerated by the pandemic. And then when we look closer into the numbers in the second quarter, As said, due to the coronavirus pandemic, our net sales declined by 20%, but I would rather say that it was restricted the fall was restricted to 20% as the situation, the reality was extremely special during this time with the majority of the Marameco's also company owned stores company owned stores being closed for the most part of the period under review. The net sales were weakened, especially by a decline in retail sales in Finland, North America and Scandinavia as well as a decrease in the wholesale sales in the Asia Pacific region.
However, on the other hand, the higher than expected licensing income in the Asia Pacific region then supported the net sales. In the retail sales, a decline of 37%, you can see the impact of the temporary closure of the Marameco company owned stores. However, it is to be noted that the very strong online sales supported and to a large extent offset the impact of the store closures and reduced footfall during this timing. And as said, the wholesale sales kept more or less on the same level as in the previous years declining only 3%. Then when we look at the half year performance, our net sales declined by 14%.
But again, when we also look at the half year period, substantial growth in our online sales to a large extent offset the lost sales from the temporary closed owned retail stores. When we look at the overarching drivers in the half year period, it's pretty much the same drivers as in the second quarter. So the decline in retail sales in Finland, North America and Scandinavia pressed down net sales as well as the decrease in wholesale sales in Asia Pacific region and EMEA, while the strong licensing income and good growth in wholesale sales in Finland boosted the net sales. It's maybe to be maybe good to also note that when it comes to the Asia Pacific region, in the half year period, there was also an exceptional delivery pattern in question. As in the comparison period, part of the wholesale deliveries on the final quarter of 2018 took actually place in the Q1 of 2019.
But as said, overall, at Marameco, we're content on our ability to have compensated with our substantially grown online with our substantially grown online sales, the downfall in our retail that was caused by the temporary store closures and reduced footfall, all caused by the pandemic. Then we will when we look at the split between the different market areas, as to the net sales, Finland has typically and historically represents about half of our net sales, Asia Pacific region being the 2nd biggest market. When it comes to the net sales by product line, there are no major shifts, but maybe something to be noted is the relative increase of the home category sales, which in a way is very natural when we think about the timing of the pandemic and consumers' growing interest towards home products, again, stating another area of opportunity for Marameka also in the longer term, being a one of the first real lifestyle brands in the world. Around 57% of Marimekko stores and shopping shops are already located outside of our home market in Finland. In the period under VIVU, a new store was opened in Hong Kong in a highly respected mall.
We also opened 1 shop in shop in Finland and closed one of our older stores in Frankfurt during this time. And today, there are around 150 Marimekko stores around the world. Our brand sales grew by 13% during the Q2, and the great majority of that came from outside of the home market, especially in this quarter. It was supported by strong brand sales growth in the Asia Pacific region. Then when we look at the operating profit, so as mentioned earlier on, we can say that the operating profit kept at a very good level considering the very difficult circumstances.
Naturally, the earnings were weakened by the reduced net sales and a decline in relative sales margin, but they were definitely boosted by the promptly achieved cost savings. So if we look a little deeper into the drivers behind the decline in relative sales margin, so what had a deepening weakening effect was the increased logistic costs due to the substantial growth in our online sales as well as bigger discounts in the period under review, whereas then the strong licensing income as well as the good product margins achieved through positive development in product portfolio optimization, then again supported the relative sales margin. So good long term work done there and visible in the result. And as said, one of the reasons why the operating profit kept at the good level was the fact that very early on to the pandemic when we started to see the sign of the spreading of the virus, we drew up a very ambitious fixed cost savings plan and started to implement it rigorously. And this resulted then to a noticeable decrease in fixed costs in the second quarter and supported then the operating profit.
Exactly the same drivers behind the half year operating profit as in the second quarter. So our operating profit in the 1st 6 months equaled €3,900,000 So naturally, there is a fall due to the decrease in the net sales and the relative sales margin, but on a good level considering the very difficult and exceptional circumstances. Then if we look into the key events, other key events during the Q2. Some of you may know that since 1990 2, Marameco has invited the whole public in Finland to enjoy and celebrate the beginning of the summer through our annual public fashion show day. Naturally, this year due to the pandemic, we're not able to realize this event in the physical environment.
However, we were quick enough to actually shift and move this event to the virtual world. And this year, we also wanted to invite our entire community to participate in a new way to this legendary event. And we actually invited our fans and friends to participate by themselves to model in this virtual fashion show that took place in Instagram. The event was a big success. It was watched or viewed for over 3,500,000 times and definitely really helped us underline and further strengthen the important values of and equality.
Also during the Q2, we announced that to further strengthen our international competitiveness, the worldwide renowned visionary, Rebecca Bey, was appointed our Creative Director, and she will start in the role on the served in in the Marameco Board of Directors for several years. With disappointment, she resigned from the Board. I strongly believe that Rebecca's ability to combine a strong creative vision with commercial thinking as well as her versatile international experience and knowledge of Asian markets, key growth market area for Marameco will support our creative community to developing the appeal of our collections even further. We also announced our sustainability review for 2019 in June 2020. In the past year, we've taken again major steps, for example, in the area of increasing the share of more sustainable materials in our products and packaging as well as taking good steps in projects in which we participate that aim to developing new more sustainable materials.
Overall, we've continued our work to further extend the life of our products. As you know, timeless and long lasting design is at the core of the whole Marineco design philosophy. We've been also working on reducing the environmental impacts of Maremeco and overall improving the sustainability of our entire supply chain, just to name a few things. Sustainability is one of the key megatrends evident in our industry. And for Marameco, sustainability has been at the core of our design philosophy and operations ever since the beginning of our company from the 1950s.
And we are planning and will be launching even more ambitious new sustainability strategy towards the later part of this year. Then if we look at the outlook for 2020, So as I said earlier on, the coronavirus represents the deepest, biggest crisis experienced by the global fashion industry and specialty retail sector in decades. It has definitely taken the uncertainty in the global economy to a totally new level and this way also impacts consumer purchasing behavior. The exceptional circumstance has an impact on Marameco sales profitability and cash flow. Then if we look at some of our key markets.
So Finland, our strong home market traditionally represents about half of our company's net sales. Today, the majority of the Marameco company owned stores are reopened after the temporary closure during the springtime. However, many of them with restricted opening hours. And as spoken already in the spring summer, the demand for our products in our online store increased significantly. Towards when we look at the whole year, the domestic wholesale sales in 2020 will be boosted by nonrecurring promotional deliveries, and a vast majority of these deliveries will be taking place in the second half of the year.
Then overall, the outlook for our domestic market and our company's consolidated net sales and earnings depends on the trend in the customer numbers in retail stores during the rest of the year as well as whether there will be new major coronavirus infection waves in the course of the fall. So and then when we look at the Asia Pacific region, which is our 2nd biggest market area and playing a very significant role in our company's overall internationalization ambitions. At this point in time, all the Marimekko partner owned stores, So all the partner all the stores in Asia are actually partner owned stores. So all of them currently are reopened and to some parts with restricted opening hours. However, after the period under review, Marameco has needed to reclose some of our stores in Australia due to new instructions from authorities.
And as I said, we constantly keep monitoring the situations in all of our markets. The temporary closure of Marmeco stores in Asia, the possible new infection waves and the impact overall the pandemic on consumer sentiment will affect our company's outlook for wholesale sales in the region in 2020. However, in the longer term view, we do continue see increasing demand for our products in this region. Then a few more points to be taken into account when it comes to the market outlook on growth targets. We keep on working with the cases of with the controlling of the cases of grain import that came to our attention last year, and that will have a clear weakening impact on our sales and earnings this year.
However, licensing income this year is forecast to be approximately at the same level as last year due to the better than expected estimated development. As said, the online store is becoming more and more important in the context of our overall Marameco business, and the online sales are also expected to perform well in the second half of the year. The full year outlook on retail sales naturally depends on the return of customer flows to stores in the during the rest of the year in each market as well as the possible new infection waves, which may or may not then require the temporary new temporary closures of our own company owned retail stores. Then at the same time, the company's wholesale partners and customers' recovery from the pandemic can impact their replenishment orders during the remainder of the year and this may impact the full year outlook. And it's good to remember that the full year Host SS will be supported by these nonrecurring promotional deliveries in Finland, the vast majority of which will be in the second half of the year.
It is still our ambition and plan to open approximately 10 new Marameco stores and shop in shops in 2020, with the main thrust being on retailer owned Marameco stores, meaning that they don't require CapEx for Marameco as a company. As said, while the supply chain has not had major impacts from the exceptional situation. We have indeed encountered challenges in the early part of the year in our logistics due to the spiking demand in online sales and some wholesale delivery problems in the early part of the year. And as the result of the growth in the online sales, we do expect our full year logistic costs to increase on 2019. The effects of the ambitious fixed cost savings program were definitely clearly evident in the second half Q2 of the year.
And fixed costs are expected to also decrease in the last half of the year, but more moderately that in the early part of the year. Marketing expenses are estimated to be substantially lower and investments to be lower than the previous year. And finally, the estimated effects of the long term bonus system targeted at the company's management will naturally depend on the trend, the price of the company's share during the year. Once the pandemic started to spread in March on 25th, we withdrew our earlier financial guidance for 2020 solely due to the estimated impacts of the coronavirus pandemic. And as we stated in conjunction of our Q1 interim report on the 14th May, the pandemic will have a significant negative impact on Marneco's net sales and profitability in 2020.
And as the situation is changing, still so rapidly, it's not possible to give any precise estimate of the impact of the pandemic on the business. And this was, in short, our results for the second quarter and first half year. And now we have time for questions.
At this point, I would like to remind you that you can ask questions using the chat function at the webcast. We have one question related to our products. Will there be official Marimekko face masks?
Well, this is definitely something that we are exploring. As face masks, they are a new type of a product category that Marameco does not have any experience from the past. So we want to take the necessary time and exploration to see whether that would be something that we could potentially offer sometime in the future.
At the moment, we don't have any more questions. Okay. So thank you, Tina, and thank you for all the viewers. And we hope to see you at the latest and our Q3 results.