Good afternoon. My name is Anna Tuominen. I am the IRO of Marimekko, and I have the pleasure to welcome you to our Q3 webcast. With me, I have our President and CEO, Tiina Alahuhta-Kasko, who will walk you through our third quarter results in just a few minutes. After Tiina's presentation, Tiina will be joined with our CFO, Elina Anckar, and we will take your questions. You can use the chat function on the platform to type in your questions already during the presentation, so we will be ready for that. Without further ado, Tiina, please go ahead.
Thank you so much, Anna. Good afternoon also on my behalf, everyone. It is my pleasure to walk you through our interim report for the third quarter of the year. Let us get started. How did Marimekko perform in the third quarter? Our net sales and operating profit increased in this quarter due to the excellent development of international sales. In fact, our net sales in Q3 were up by 3% and amounted to EUR 52.1 million. Our net sales were boosted especially by the excellent development of wholesale and retail sales in all international markets, and this excellent development of international sales in a globally challenging market situation is a true testament for the strong appeal of our brand and a result of the long-term systematic brand-building work in this very highly competed fashion and design industry.
On the other hand, our net sales development was weakened by the decrease in the domestic sales. In Finland, the continued challenging market situation affected our performance. International sales grew by 16% following the excellent development of net sales in all market areas, and net sales in Finland decreased by 9%. Our comparable operating profit increased to EUR 13 million, which represents 25% of net sales, and it was increased by growth in net sales as well as improved relative sales margin. When we look at our performance cumulatively in the first nine months of the year, our net sales increased by 2% to EUR 137.5 million, as both retail and wholesale sales increased across our international markets. Our comparable operating profit came to EUR 23.4 million, representing 17% of net sales. From here, we move on to the holiday season, which is, of course, important in our industry.
As typical of our industry in general, the Q4 is important for Marimekko in terms of sales, and it is good to remember that the operating environment is highly volatile, and the development of consumer confidence and consumer purchasing behavior, especially in our domestic market, naturally has an impact on our business. Actually, with that bridge, maybe a few words about the operating environment in our domestic market, Finland. The operating environment here is still challenging. After the summer, uncertainties in the global economy have escalated further, and consumer confidence in Finland, for example, has sunken after temporarily improving. Although we see that the Finnish economy has grown, driven by exports and investments, it is not yet widely reflected in the daily life of consumers, which is influenced by factors such as growing fear of unemployment, increased fuel prices, expectations for resurgent inflation, and higher interest rates.
Also, surveys indicate that, in particular, women have reduced their spending on specialty retail purchases over the past year, and overall, the significance of price in purchasing decisions has been emphasized further. With this domestic economic climate in mind, at Marimekko, we are continuously developing our collections so that our lifestyle assortment covers an even wider range of price points without compromising on quality, and thereby serves our customers even better than before in this more price-sensitive operating environment. Naturally, we also hope that the strengthened economic growth in Finland will gradually start to reflect favorably in consumer buying behavior also in the premium segment in which Marimekko operates. Let's look at the net sales and operating profit drivers in the third quarter, starting with the net sales.
As mentioned, net sales increased in total by 3%, and they were boosted especially by the excellent development of wholesale and retail sales in all international market areas. In Finland, our net sales decreased by 9%. It is good to remember that in 2026, the non-recurring promotional deliveries in domestic wholesale sales are expected to grow from the comparable year and be weighted in the second half of the year, with the growth of promotional deliveries taking place in the fourth quarter of the year. Therefore, as expected, the non-recurring promotional deliveries in the third quarter were below the comparison period, impacting wholesale sales in Finland, which decreased. Also in this price-sensitive market situation, retail sales in Finland declined. However, we look at the international market, starting from Asia Pacific, our second-largest market area.
Our net sales increased double digits by 10%, as both retail and wholesale sales grew. Also, overall, we saw, as mentioned, excellent development in international sales, and our international sales in total grew by 16%, when the development of wholesale and retail sales was excellent in all international markets. When we look at the cumulative performance, we saw a net sales growth by 2% to EUR 137.5 million, boosted in particular by the growth of retail and wholesale sales in all international market areas. In Finland, the net sales decreased by 6%, as the continued challenging market situation impacted negatively, particularly domestic retail sales. The wholesale sales in Finland declined by 5%, but the non-recurring promotional deliveries in domestic wholesale sales increased from the comparison period. In the international front, again, strong double-digit performance. International sales grew in total by 11%, with all international market areas reporting excellent development.
Most growth was accrued in the Asia-Pacific region, our second-largest market area. In Asia-Pacific region, we saw net sales increase by 9% when retail sales in particular developed well. Also, wholesale sales and licensing income grew in the region. When we look at our net sales development split by market area or product line, naturally when we saw positive development in international sales, the share of international sales grew, and that we can see in the optic of the share of, for example, Asia-Pacific, North America, and Scandinavia, share of the total net sales. Conversely, the share of Finland declined. When it comes to the split by product line, there are actually no changes.
Our omnichannel store network continued to grow in Asia, and today we have 184 Marimekko stores or shop-in-shops serving our customers in addition to our online store that serves customers in already 39 countries. Our brand sales in the first nine months of the year amounted to EUR 271.6 million, and 65% of our brand sales came from outside the home market, Finland. Moving on to our profitability. In the third quarter, our comparable operating profit improved by 3% and totaled EUR 13 million, equaling to 25% of net sales. The operating profit was increased by the increase in net sales and improved relative sales margin, while on the other hand, the grown fixed costs had a negative impact on the operating profit. The drivers behind the relative sales margin improvement was in particular the margins per product being at the good level.
The fixed costs grew due to an increase in personnel expenses driven by general pay increases among others, as well as due to higher marketing investments. When we look at the cumulative performance in profitability, cumulative operating profit is at the good level, and the comparable operating profit totaled EUR 23.4 million, so pretty much on par with the comparison period. From a relative profitability point of view, this equals to 17% of net sales. Our operating profit was weakened, especially by increased fixed costs, while on the other hand, again, the improved relative sales margin as well as the grown net sales had a positive impact on the operating profit development.
Our fixed costs grew when we look at the cumulative time scale due to significant growth in marketing costs as well as increase in personnel costs, driven in particular by the general pay increases in different markets, while the relative sales margin was strengthened by the unrealized exchange rate differences, increased licensing income, and lower logistic costs. Moving on to all the exciting events in the third quarter, and there were many. First of all, in the third quarter, we continued to expand the Marimekko store network, and four new stores and shop-in-shops were opened in Asia. In addition, 11 smaller Marimekko shop-in-shops and pop-ups delighted customers in Asia, and also one pop-up store in Paris, namely in the iconic Galeries Lafayette department stores.
The majority of both the kind of big and small openings in the third quarter took actually place in Indonesia and Philippines, which are new markets for Marimekko. We're very excited to have launched in new markets this year. At the end of September, the grand launch of Marimekko, our arrival in Indonesia was celebrated, for example, with a fashion show. We also continued our investments into expanding the Marimekko phenomenon around the world, and we presented our spring/summer 2027 collections at Copenhagen Fashion Week, which is an investment that, of course, strengthens our global brand position. Our show drew hundreds of influencers, buyers, and media, and over two billion digital media impressions globally were achieved through this great initiative. Moving on to especially Asia, the key cities in Asia saw the Marimekko Art of Flowers tour taking place.
The Marimekko Art of Flowers tour features Marimekko's floral designs and again introduces new customers to the Marimekko lifestyle philosophy. This tour, together with other events that build recognition, really support us on our internationalization journey. In addition to brand events that generate interest, brand ambassadors play a significant role in awareness building, especially in Asia, which is, of course, a key market for Marimekko. We were very happy and honored to introduce and announce the first-ever Marimekko brand ambassador in Thailand. Her name is Toey Jarinporn, who is an actress and TV host. The Marimekko art of printmaking is, of course, what sets us apart from all the rest, and it is always at the heart of our engaging initiatives and events.
In the third quarter, for example, during the Helsinki Design Week, we showcased new Marimekko prints designed by the Danish textile artist or designer Vibeke Rohland in the Futuro House, as well as part of a limited edition capsule collection designed by the Finnish famous fashion designer Rolf Ekroth. In July, in Kyoto, we saw the launch of a Marimekko exhibition showcasing and telling the story in a wide manner of the Marimekko design philosophy. This exhibition will now actually tour in different cities in Japan for the next two years, and again, act as a great vehicle for us to deepen the relationship with our current customers, as well as introduce entirely new audiences to the Marimekko brand. Moving on then to the outlook for the rest of the year, or for the full year.
In general, of course, there are still significant uncertainties related to the development of the global economy, such as, of course, the tensions related to geopolitics and trade relations, the war in Iran, any rapid changes in trade policies, as well as other uncertainties are reflected in consumer confidence, purchasing power, and behavior, and as a result, can have a weakening impact on Marimekko. In addition, different disruptions in production and logistic chains, as well as changes in these chains caused by these uncertainties, may also have a negative impact on the company. But as always, we're monitoring carefully the different situations, and we'll adjust our operations and plans accordingly if needed. A few words about the seasonality. Of course, due to the seasonal nature of our business, a major portion of our EUR-denominated net sales and operating profit are traditionally generated during the second half of the year.
It is also good to remember that the timing between quarters of the non-recurring promotional deliveries in Finnish wholesale and their size typically vary on an annual basis. Licensing income in 2026 we forecast to grow. Moving on to the net sales development, starting from our domestic market, Finland. Due to the uncertainties in the market environment, we estimate the net sales in Finland in 2026 to decrease. The sales in Finland in general are impacted by the uncertain general economy, as well as the development of consumer confidence, purchasing power, and behavior. While, as discussed, there are early signs of general economic recovery, the operating environment in Finland has remained price-sensitive and campaign-driven, and consumer confidence has weakened further, which have an impact on the business.
In 2026, the non-recurring promotional deliveries in wholesale sales in Finland are expected to grow from the comparable year and be weighted on the second half of the year, with the growth of the promotional deliveries taking place in the fourth quarter of the year. When it comes to the international sales, we estimate international sales to grow in 2026. We also estimate the net sales in Asia-Pacific region, our second-largest market area, to increase. In 2026, the aim is to open approximately 15 to 20 new Marimekko stores and shop-in-shops, and most of the planned openings will be in Asia, as in many of the past years. A few words about growth, investments, and costs. Fixed costs in 2026 are expected to be up on the previous year.
Of course, the general cost inflation continues to also affect Marimekko in 2026, and marketing expenses are expected to increase. There are, of course, uncertainties related to the global production and logistic chains, which may, for example, increase costs or cause delays, and thus have an impact on the company's sales and profitability, and the ongoing war in Iran may increase production and logistic costs. But as always, we work actively in various ways to ensure competitive and functioning production and logistic chains to mitigate increased costs and other negative impacts, to avoid delays, and to enhance inventory management. We today reiterate our financial guidance for 2026. The Marimekko Group's net sales for 2026 are expected to grow from the previous year, and the comparable operating profit margin is estimated to be approximately some 16%-19%.
The development of consumer confidence and purchasing power in our company's main markets in particular cause significant volatility to the outlook in 2026, and this development is strongly impacted by the rapid changes and uncertainties in geopolitics and global trade policy, among others. In addition, different disruptions in global supply chains can cause volatility to the outlook. But with these words, I will say thank you for listening, and we can open up for the Q&A.
Thank you, Tiina. There's already a few questions, but if you have more questions in mind, please use the chat function on the web platform. Let's have Elina here as well. Maybe we can start with some questions related to the Finnish market, as that's a big part of Marimekko's business. The first question relates to this sort of longer-term challenging market environment, as the Finnish consumer market has been weak for already several years. Why do you think it's impacting the sales this year especially, as it hasn't been The question is, it hasn't been visible the previous years, but I would like to maybe correct that we have actually been speaking about this already last year, for example, in the second half of the year. But is there a special reason why we're seeing the effect now?
Well, as Anna, you mentioned, the market situation, the operating environment in Finland has been challenging for quite a long time, and we have been actually also mentioning that in our interim reports in the past quarters as well. I think that what we see now, as I mentioned in one of the slides that I presented, we can see that after the summer, the uncertainties in the global economy have escalated further, and we can see that after temporarily improving, the consumer confidence in Finland has again sunk. As of course, it is very positive to see that the Finnish economy is growing, driven by exports and investments. However, as mentioned, it is not yet widely reflected in the daily lives of consumers, as there are other factors that influence that sentiment.
For example, the fear of unemployment, the fuel prices that are increasing, the expectations on resurgence inflation, as well as the higher interest rates. As I already mentioned in the presentation, we also see that according to surveys, women in particular have reduced their spending on specialty retail purchases over the past year. That, of course, has also reflected in our sales, where the significance of, in Finland, where the significance of price in purchasing decisions has been also emphasized further. So we can see that the market has continued to be price-driven, or price-sensitive and campaign-driven. Of course, we hope that the positive development in the economy in general, the growth in the economy in general, will start to gradually translate into more confidence in consumers' minds and this way.
We have seen also in our figures.
Yeah. We have seen that some lower, sort of like hypermarkets, for example, have reported some growth also in clothes, for example. It is, of course, a totally different kind of product. Do you think that Marimekko has lost market share in Finland at the moment, or is it sort of a different category is that-
Well, I think it's important to remember that we are Marimekko is positioned in the premium segment and in specialty retail. I think that it's important to remember the context in which we operate. As said, we can see that the consumer has been price-sensitive and the market campaign-driven. As I mentioned, I hope that the positive development in the Finnish economy will gradually start to translate into consumer behavior also in the premium segment in which Marimekko operates.
One of the ways mentioned, also in your presentation, was this further widening of the lifestyle portfolio, also to lower price point products. Do you think that that might have an impact also on product margins? Earlier, Marimekko has commented that, for example, between different product lines, home and fashion, there's not a huge difference in margins when you look at the whole product lines.
Well, I would say it like this, that I think that already today, because of course, if we look at it from a longer time perspective, Marimekko has been navigating in Finland this difficult market situation, I would say quite well. It's been quite a volatile and uncertain market for already many years here. I think that one of the strong points in our brand and offering is actually, in fact, the fact that we have a wide lifestyle portfolio, which already today includes various price points in terms of product offering. Here, what I mentioned, we continuously develop that further. Here, when it comes to assortment development, it's also about the balance, the weight of different price points, and really kind of ensuring that we answer to the needs of the customers in different sentiments and for the different needs that they have.
In a way, this kind of assortment planning is something that we do daily anyway because we have different climates, different consumer behavior in different markets.
Exactly. I would say that this is quite regular, normal work that we take into consideration different aspects, what to consider when we design the collections.
Like said, the international sales grew really well. There is a couple of questions on reasons behind that. Is it possible to sort of list in order of importance, different reasons, for example, the new store openings or brand-building efforts or renewed online stores, or is this a long-term sort of work that is now showing in different markets?
As I mentioned in my presentation, I think first and foremost, this is a true testament for the appeal of our brand and the result of the systematic brand-building, long-term brand-building efforts that we have been doing and are doing despite the uncertainties in the world.
There was a lot of examples in your presentation.
Yes. I think that, of course, it's a sum of all parts. We're very excited that also in these more uncertain times, I mean, it's a challenging market situation pretty much everywhere, but we're still pushing ahead with our SCALE strategy in the international markets. We're opening new market areas. Last year, we opened our new flagship in Paris. We created new language versions of our online site. We are constantly updating our store experience, reinforcing our own capabilities. I think it's a sum of all parts.
Today, it was mentioned that there will be 15-20 new openings. Where are the new openings happening at the moment?
As mentioned, most of them will be in Asia, as in the past years. If we look more in detail, where the openings have been taking place, year to date, so cumulative, of course most of them have been already in Asia. For example, in the third quarter, our openings were in Japan, in South Korea, in Seoul, they were in Jakarta, actually two of them, in Manila, in the Philippines, and also in Bali, Indonesia. We can see the strong focus on Asia here.
Then a question more related to the full year views. Elina, what do you think on the cost side? Marimekko has guided the fixed costs will increase, but what would be the biggest uncertainties related to costs going forward, and how is Marimekko managing those?
Regarding the uncertainty regarding costs, I would say it's not amongst the fixed cost. We're talking about then some disruption in production chains or logistic chain. That is something that we are constantly monitoring. We've been doing this work since the pandemic. Then of course, we have very precise cost estimation process, and we do have different scenario versions. I think in overall, we are very fast in making agile decisions based on the whole company point of view. We're very fast in decision-making if some sort of disruptions would take place. But I would say that.
Yes. Year to date, the group sales are up by 2%. How do you plan to secure the guidance of growing sales as the Finnish economy is still quite muted when we go to Q4?
As mentioned, when we look at the full year market outlook, we have today mentioned that due to the uncertainties in the domestic market, we estimate the net sales in Finland in 2026 to decline, but we estimate the international sales to increase and also the Asia Pacific net sales to increase, and also the licensing income is estimated to be up on the previous year.
Then final question related already looking at 2027 and beyond. Currently Marimekko has an interim CTO, and the SCALE strategy period is, like said, ending at the end of 2027. Can you already give a sneak peek on how technology and digital will be positioned in the next strategy, or is this something that will be discussed then later next year?
Of course, we will talk about the next strategy term when we eventually launch it, because we still have a year left of this strategy term. But putting that aside, I think that overall it's obvious that technology plays a very important role in Marimekko's competitiveness in the future, like in any companies. The way that at Marimekko we see it, we see that technology can offer us tools to support our growth and improve our efficiency, and this way actually pave even more room for our unique value proposition, which is around creativity and the art of printmaking and the kind of human element. We already today work very actively in capturing the opportunities, the value-driving opportunities of technology.
Thank you, Tiina. Thank you, Elina. Those were all the questions today. We hope that you join us February when we come back with our full year results.