Marimekko Corporation, Interim Report, 7 November 2013 at 8.30 AM
In the January-September period of 2013, the Marimekko Group's net sales grew
by 9 percent relative to the same period last year. International sales rose by
20 percent, mainly due to the stores opened in North America and the
Asia-Pacific region during the period under review and in 2012. In the
July-September period of 2013, the Group's net sales rose by 3 percent.
Operating profit for the January-September period of 2013 includes EUR 1.5
million in nonrecurring expenses due to arrangements arising from the statutory
employer-employee negotiations concluded during the second quarter. Operating
profit excluding nonrecurring items in the January-September period was EUR 2.1
million (2.0). In the July-September period, operating profit was EUR 3.1
million (3.5). Operating profit for the review period was boosted by growth in
wholesale sales in the Asia-Pacific region, an improvement in the profitability
of company-owned stores in Finland in spite of a fall in comparable sales, and
by growth in the company's textile printing factory's operating rate as well as
enhanced operational efficiency.
In the last quarter of 2013, Marimekko will continue to make moderate
investments in growth, concentrating on improving profitability, particularly
by enhancing the operations of the stores opened in 2012.
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Net sales, EUR million 24.9 24.2 3 68.5 62.7 9 88.5
--------------------------------------------------------------------------------
International sales, EUR 10.6 9.9 7 31.1 25.9 20 36.1
million
--------------------------------------------------------------------------------
% of net sales 43 41 45 41 41
--------------------------------------------------------------------------------
EBITDA, EUR million 4.2 4.4 -5 4.3* 4.5 -6 5.6
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 4.2 4.4 -5 5.5 4.5 21 5.6
items, EUR million*
--------------------------------------------------------------------------------
Operating profit, EUR million 3.1 3.5 -11 0.6* 2.0 -68 2.0
--------------------------------------------------------------------------------
Operating profit excluding 3.1 3.5 -11 2.1 2.0 6 2.0
nonrecurring items, EUR
million*
--------------------------------------------------------------------------------
Operating profit margin, % 12.4 14.4 0.9* 3.2 2.3
--------------------------------------------------------------------------------
Operating profit margin 12.4 14.4 3.1 3.2 2.3
excluding nonrecurring items,
%*
--------------------------------------------------------------------------------
Result for the period, EUR 1.8 2.5 -27 -0.4 1.4 -128 1.1
million
--------------------------------------------------------------------------------
Earnings per share, EUR 0.22 0.31 -29 -0.05 0.18 -128 0.14
--------------------------------------------------------------------------------
Cash flow from operating 2.6 3.1 -14 0.4 2.5 -85 8.6
activities, EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % 13.0 28.9 0.9 6.0 4.1
--------------------------------------------------------------------------------
Equity ratio, % 51.5 54.4 54.6
--------------------------------------------------------------------------------
Gross investments, EUR million 0.8 1.7 -56 1.9 5.6 -67 7.6
--------------------------------------------------------------------------------
Personnel at the end of the 522 482 8 522 482 8 535
period
--------------------------------------------------------------------------------
outside Finland 110 77 43 110 77 43 103
--------------------------------------------------------------------------------
Brand sales**, EUR million 48.4 49.6 -2 139.6 132.8 5 187.2
--------------------------------------------------------------------------------
outside Finland, EUR million 28.8 27.4 5 86.6 75.7 14 100.7
--------------------------------------------------------------------------------
proportion of international 60 55 62 57 54
sales, %
--------------------------------------------------------------------------------
Number of stores*** 128 102 25 128 102 25 108
--------------------------------------------------------------------------------
* Operating profit includes EUR 1.5 million in nonrecurring expenses due to
arrangements arising from the statutory employer-employee negotiations
concluded during the second quarter of 2013. EUR 1.2 million of these
nonrecurring expenses is included in EBITDA.
** Estimated sales of Marimekko products at consumer prices. Brand sales are
calculated by adding together the company's own retail sales and the estimated
retail value of Marimekko products sold by other retailers. The estimate, based
on Marimekko's actual wholesale sales to these retailers, is unofficial and
does not include VAT. The key figure is not audited.
*** Includes the company's own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm. The company's own retail
stores numbered 49 at the end of September 2013 (43). Information on changes is
available in the section Internationalisation and changes in the store network.
Mika Ihamuotila, President and CEO:"In the third quarter of the year, market conditions continued to be
challenging in all our main market areas. In spite of this, we succeeded in
boosting our net sales in the January-September period by 9 percent compared to
last year. I am satisfied that our international sales grew during the period
under review by 20 percent and in the July-September period by 7 percent. The
challenging market conditions were particularly expressed in the form of a
downturn in our wholesale sales in Scandinavia, Central and Southern Europe,
and North America. This, combined with the loss-making operations of stores in
the launch phase in the United States, weakened our operating profit for the
third quarter, which was EUR 3.1 million. We are, however, pleased that our
EBITDA for the period under review has improved as a result of investments in
growth. "A total of 14 new Marimekko stores were opened in the third quarter of the
year - all, with the exception of one, in our international markets. The number
of openings for the entire year will be 34, 25 of them outside Finland. The
openings are part of the roll-out of our long-term internationalisation
strategy, and I am convinced that the investments we have made in recent years
will gradually show up both in our growing net sales and in improvements to our
profitability. However, we must keep a close eye on the market trend and take
care of our operational cost-effectiveness. "We reported after the period under review that Taiwan's first Marimekko store
is to open in Taipei in November. In our second-largest market, the
Asia-Pacific region, this opens up yet another new and attractive area for us.
The intention of the contract we have signed with our partner is to open a
total of five Marimekko stores and shop-in-shops in Taiwan by the end of 2018.
Our business trend in the Asia-Pacific region has continued to be positive, and
I believe that the attractiveness of the Marimekko brand will further gain in
strength in this market. We have also taken other important steps in Asia in
the course of 2013: the first Marimekko stores in mainland China opened in
Beijing and Shanghai, and in Japan our store network has now expanded to
comprise 25 stores. I am pleased that we decided some years ago to invest
heavily in Asia, where the growing consumer market is one of the key phenomena
of the global economy today. I am also happy that our personnel's Asia-related
expertise has greatly increased, as this is sure to boost our success in this
enormous market.”
Market outlook and growth targets
General uncertainty in the global economy is forecast to continue, and this may
affect consumers' purchasing behaviour in all of Marimekko's market areas. The
economic prospects for Europe are still gloomy, and growth is slow in the
region. However, the economic outlook has taken a slight upturn. In the United
States and Asia, economic forecasts are better than in Europe. In the United
States, the growth prospects have, however, slightly weakened in the past
months, but in Asia, the economic groth is anticipated to continue stronger
than in other regions. In Finland, market conditions are weak, and economic
forecasts by trade and industry for the next few months are clearly below
normal. Economic conditions are also expected to remain weak, and retail sales
are forecast to decline. (Confederation of Finnish Industries EK: Business
Tendency Survey, November 2013). In Finland, consumer confidence continued to
deteriorate in the third quarter of the year and the autumn was exceptionally
warm. Consequently, the downturn in the comparable sales of Marimekko's own
stores in Finland accelerated. The negative trend of company-owned stores in
Finland also continued in October, casting a shadow over prospects in Finland
for the end of the year and especially for Christmas trading which is important
to Marimekko.
The stores opened in 2012 and other major investments in expanding the
distribution network will bring a considerable increase in sales in 2013. The
main thrust in expansion this year is on openings of retailer-owned Marimekko
stores and shop-in-shops. The company will also invest in developing the
operations of the stores it opened in 2012. Marimekko announced in January that
the aim was to open 15 to 24 new stores this year. The number of stores to be
opened has been confirmed as 34, of which 6 will be company-owned.
The planned total investments for 2013 of the Marimekko Group are estimated as
being in excess of EUR 3 million. Most of the investments are devoted to
building new retail facilities and purchases of fittings.
Financial guidance
Marimekko revised its estimate of the 2013 operating profit on 16 May 2013 due
to the nonrecurring expenses arising from the statutory employer-employee
negotiations conducted by the company. The company reiterates the estimate it
announced on 16 May 2013, whereby the Marimekko Group's net sales are estimated
to grow by over 5 percent and operating profit excluding nonrecurring items is
forecast to be, at the most, at the same level as in 2012. The increased
proportion of retail sales will further boost the seasonal nature of business,
so the major portion of operating profit will, as is typical, accrue in the
second half of the year.
Further information:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Merja Paulamäki
Tel. +358 9 758 7473
merja.paulamaki@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2012, brand sales
of Marimekko products worldwide amounted to approximately EUR 187 million and
the company's net sales were EUR 88 million. The number of Marimekko stores
totalled 108 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 JANUARY - 30 SEPTEMBER 2013
MARKET REVIEW
The widespread uncertainty over the global economy continued during the period
under review and consumers' purchasing behaviour remained cautious. In Europe,
the serious debt crisis of the EU states retreated somewhat, but the region's
economic growth continued to be weak. In the United States and Asia, the
situation was better, although growth was fairly slow. In Finland, market
conditions continued to be worse than the average and the economic prospects
deteriorated. The short-term economic outlook for trade and industry continued
to be sluggish and has further weakened. Consumer confidence was low during the
period under review and turned to deteriorate in the third quarter of the year.
(Confederation of Finnish Industries EK: Business Tendency Survey, November
2013).
In the January- September period of 2013, retail net sales in Finland rose by
0.5 percent, but the quantity of sales - which measures real growth in sales -
declined by 0.7 percent. (Statistics Finland: Turnover of trade, retail trade
flash estimate, October 2013). From January to August 2013, retail sales of
clothing (excluding sportswear) fell by 4.6 percent. Sales of women's clothing
declined by 5.0 percent, menswear by 1.6 percent and children's clothing by 8.0
percent. Sales of bags fell by 0.1 percent (Textile and Fashion Industries
TMA). In the January-July period of 2013, clothing (SITC 84) exports grew by 10
percent and imports were level with the previous year; imports and exports of
textiles (SITC 65) declined by 5 percent each (National Board of Customs,
monthly review, September 2013).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
In 2012, Marimekko invested more than before in expanding its network of
company-owned stores in Northern Europe and the United States in order to raise
its profile and to enhance prospects for the opening of retailer-owned
Marimekko stores and shop-in-shops. This changed the ratio of wholesale to
retail and tied up a larger proportion of the company's capital and resources
than before.
In 2013, the main thrust in Marimekko's expansion is on openings of
retailer-owned Marimekko stores and shop-in-shops. The company is also
investing in enhancing the operations of the stores it opened in 2012. In
January, Marimekko announced that the aim was to open 15 to 24 new stores this
year. The number of stores to be opened has been confirmed as 34, of which 6
will be company-owned. During the third quarter of the year, 14 Marimekko
stores were opened: a company-owned store in Copenhagen (Denmark),
retailer-owned stores in Hämeenlinna (Finland), Kagoshima (Japan), Shanghai
(China) and Pangyo (South Korea), as well as nine shop-in-shops, of which six
are in Canada and the remaining three are in the United States, Denmark and
Japan.
In August, Marimekko signed an import and distribution contract with the
Taiwanese Yun San Corporation. The intention is to open a total of five
Marimekko stores and shop-in-shops in Taiwan by the end of 2018. The first
Marimekko store will be opened by Yun San in Taipei in November 2013.
A total of six Marimekko stores were closed during the third quarter of the
year: company-owned stores in Finland and Sweden, retailer-owned stores in
Denmark and Austria, and two shop-in-shops in the United States.
Number of stores and shop-in-shops* 30.9.2013 30.9.2012 31.12.2012
---------------------------------------------------------------------
Finland 53 46 48
---------------------------------------------------------------------
Company-owned stores 29 28 28
---------------------------------------------------------------------
Scandinavia 14 12 12
---------------------------------------------------------------------
Company-owned stores 8 7 7
---------------------------------------------------------------------
Central and Southern Europe 4 5 5
---------------------------------------------------------------------
Company-owned stores 4 4 4
---------------------------------------------------------------------
North America 23 14 16
---------------------------------------------------------------------
Company-owned stores 6 4 6
---------------------------------------------------------------------
Asia-Pacific 34 25 27
---------------------------------------------------------------------
Company-owned stores 2 - 2
---------------------------------------------------------------------
Total 128 102 108
---------------------------------------------------------------------
Company-owned stores 49 43 47
---------------------------------------------------------------------
* Includes the company's own retail stores, retailer-owned Marimekko stores and
shop-in-shops with an area exceeding 30 sqm.
NET SALES
In the January-September period, the Group's net sales, boosted by
international sales, rose by 9 percent to EUR 68,542 thousand (62,723). In
Finland, net sales grew by 2 percent relative to the same period last year.
International sales rose by 20 percent.
In the July-September period, the Group's net sales rose by 3 percent, reaching
EUR 24,875 thousand (24,214). In Finland, net sales were on a par with the same
period last year. International sales rose by 7 percent.
Net sales by market area
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------------------------
Finland 14,272 14,278 0 37,454 36,789 2 52,344
--------------------------------------------------------------------------------
Retail sales 9,807 9,768 0 25,315 23,904 6 34,000
--------------------------------------------------------------------------------
Wholesale sales 4,375 4,350 1 11,821 12,456 -5 17,546
--------------------------------------------------------------------------------
Royalties 91 160 -43 319 429 -26 798
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,259 2,066 9 5,858 5,793 1 7,856
--------------------------------------------------------------------------------
Retail sales 1,185 946 25 3,032 2,355 29 3,299
--------------------------------------------------------------------------------
Wholesale sales 1,073 1,120 -4 2,826 3,435 -18 4,554
--------------------------------------------------------------------------------
Royalties - - - 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Central and Southern 2,005 2,167 -7 5,915 5,908 0 7,783
Europe
--------------------------------------------------------------------------------
Retail sales 324 366 -12 954 1,066 -10 1,492
--------------------------------------------------------------------------------
Wholesale sales 1,656 1,777 -7 4,886 4,763 3 6,185
--------------------------------------------------------------------------------
Royalties 25 24 4 75 79 -5 106
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,077 2,214 -6 6,352 4,934 29 7,743
--------------------------------------------------------------------------------
Retail sales 1,366 1,198 14 3,966 2,278 74 4,020
--------------------------------------------------------------------------------
Wholesale sales 609 915 -33 2,015 2,238 -10 3,193
--------------------------------------------------------------------------------
Royalties 101 101 0 371 418 -11 530
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,263 3,489 22 12,963 9,299 39 12,745
--------------------------------------------------------------------------------
Retail sales 489 - 1,496 - 655
--------------------------------------------------------------------------------
Wholesale sales 3,774 3,488 8 11,465 9,296 23 12,087
--------------------------------------------------------------------------------
Royalties 0 1 -94 2 3 -41 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 10,603 9,936 7 31,088 25,934 20 36,127
total
--------------------------------------------------------------------------------
Retail sales 3,364 2,510 34 9,448 5,699 66 9,466
--------------------------------------------------------------------------------
Wholesale sales 7,113 7,300 -3 21,192 19,732 7 26,019
--------------------------------------------------------------------------------
Royalties 126 126 0 448 503 -11 642
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 24,875 24,214 3 68,542 62,723 9 88,471
--------------------------------------------------------------------------------
Retail sales 13,170 12,278 7 34,763 29,603 17 43,466
--------------------------------------------------------------------------------
Wholesale sales 11,488 11,650 -1 33,013 32,188 3 43,565
--------------------------------------------------------------------------------
Royalties 217 286 -24 766 932 -18 1,440
--------------------------------------------------------------------------------
Finland
In the January-September period, sales in Finland grew by 2 percent and reached
EUR 37,454 thousand. Retail sales rose by 6 percent. Sales were boosted by
three company-owned stores opened in 2012 as well as two company-owned stores
opened in the second quarter of 2013. Comparable sales by company-owned stores
fell by 5 percent. Wholesale sales fell by 5 percent.
In the third quarter of the year, consumers' purchasing behaviour became more
cautious. Retail sales remained at the level of the same period last year.
Comparable sales by company-owned stores fell by 8 percent. Wholesale sales
rose by 1 percent.
Scandinavia
In Scandinavia, sales in the January-September period grew by 1 percent
relative to the same period last year and amounted to EUR 5,858 thousand.
Retail sales rose by 29 percent. Retail sales were boosted by two company-owned
stores opened in Sweden in 2012, the extension of Marimekko's e-commerce into
Sweden, as well as the opening of two company-owned stores in 2013, one in
Sweden in June and the other in Denmark in August. Comparable sales growth for
company-owned stores was 6 percent. Most of the growth was generated from the
January sales. Wholesale sales fell in the January-September period by 18
percent. Consumers' purchasing behaviour continued to be cautious, especially
in Sweden and Denmark, which affected wholesale sales in particular.
During the third quarter of the year, retail sales rose by 25 percent.
Comparable sales by company-owned stores grew by 3 percent. Wholesale sales
fell by 4 percent.
Central and Southern Europe
In Central and Southern Europe, net sales for the January-September period were
on a par with the same period last year, amounting to EUR 5,915 thousand.
Retail sales fell by 10 percent, whereas wholesale sales grew by 3 percent.
Sales rose in Italy and Switzerland but fell in the UK, the Netherlands and
Germany.
During the third quarter of the year, retail sales fell by 12 percent and
wholesale sales by 7 percent.
North America
In North America, net sales for the January-September period grew by 29 percent
and were EUR 6,352 thousand. In terms of the sales currency (mostly the US
dollar), growth amounted to roughly 34 percent. The growth in net sales came
from the four company-owned stores opened in the United States in the second
half of 2012. Retail sales in the January-September period grew by 74 percent.
Comparable sales by company-owned stores fell by 6 percent. Wholesale sales
fell by 10 percent.
During the third quarter of the year, retail sales grew by 14 percent.
Comparable sales by company-owned stores fell by 4 percent. Wholesale sales
fell by 33 percent.
Asia-Pacific
Net sales in the Asia-Pacific region grew in the January-September period by 39
percent and were EUR 12,963 thousand. Wholesale sales rose by 23 percent.
Wholesale sales were improved by the opening in 2012 of two new stores in Japan
and one in Hong Kong, as well as investments in Australia, combined with store
openings in China, South Korea and Japan during the period under review. Net
sales were also boosted by two company-owned stores opened in Australia at the
end of 2012.
In the third quarter of the year, wholesale sales rose by 8 percent.
FINANCIAL RESULT
The Group's financial result is typically weak during the first half of the
year because net sales are low relative to operating expenses for seasonal
reasons, in addition to which profits from retail operations in particular are
generated predominantly in the second half of the year. In the
January-September period of 2013, the Group's operating profit was EUR 645
thousand (2,006). Operating profit includes EUR 1,485 thousand in nonrecurring
expenses due to arrangements arising from the statutory employer-employee
negotiations concluded during the second quarter. Operating profit excluding
nonrecurring items was EUR 2,130 thousand (2,006). Operating profit was boosted
by growth in wholesale sales in the Asia-Pacific region, an improvement in the
profitability of company-owned stores in Finland in spite of a fall in
comparable sales, and by growth in the company's textile printing factory's
operating rate as well as enhanced operational efficiency. Operating profit was
weakened by the loss posted by stores in the launch phase in the United States
as well as by a downturn in wholesale sales in Scandinavia, Central and
Southern Europe, and North America.
In the July-September period of 2013, the Group's operating profit was EUR
3,093 thousand (3,486). The third quarter's operating profit was boosted by
growth in wholesale sales in the Asia-Pacific region and Finland and by
improvement in the profitability of company-owned stores in Finland in spite of
a fall in comparable sales. Operating profit was weakened by the loss posted by
stores in the launch phase in the United States and by a downturn in wholesale
sales in Scandinavia, Central and Southern Europe, and North America.
Marketing expenses during the period under review were EUR 3,235 thousand
(3,657), or 5 percent of the Group's net sales (6).
The Group's depreciation grew due to considerable investments during the past
few years and stood at EUR 3,607 thousand (2,529), representing 5 percent of
net sales (4).
Operating profit margin for the January-September period of 2013 was 0.9
percent (3.2). In the July-September period, operating profit margin was 12.4
percent (14.4).
Net financial expenses in the January-September period were EUR 554 thousand
(298), or 1 percent of net sales (1).
Result for the review period before taxes was EUR 91 thousand (1,708). Result
after taxes was EUR -410 thousand (1,439) and earnings per share were EUR -0.05
(0.18).
BALANCE SHEET
The consolidated balance sheet total as at 30 September 2013 was EUR 53,796
thousand (54,536). Equity attributable to the equity holders of the parent
company was EUR 27,692 thousand (29,689), or EUR 3.42 per share (3.69).
Non-current assets at the end of September 2013 were EUR 22,924 thousand
(24,228). As of March 2012, tangible assets include a finance lease asset
related to the new, 30-year land lease on the property of the Helsinki head
office and printing factory. The book value of the finance lease asset at the
end of the review period was EUR 3,258 thousand (3,460).
At the end of the period under review, net working capital was EUR 17,995
thousand (20,209). Inventories were EUR 18,867 thousand (19,456).
CASH FLOW AND FINANCING
In the January-September period, cash flow from operating activities was EUR
393 thousand (2,539), or EUR 0.05 per share (0.32). Cash flow before cash flow
from financing activities was EUR -1,483 thousand (-3,070).
In the July-September period, cash flow from operating activities was EUR 2,647
thousand (3,069), or EUR 0.33 per share (0.38). Cash flow before cash flow from
financing activities was EUR 1,891 thousand (1,350).
The Group's financial liabilities at the end of the period under review stood
at EUR 16,547 thousand (16,498). As of March 2012, non-current liabilities also
include a finance lease liability related to the new, 30-year land lease on the
property of the Helsinki head office and printing factory. The present value of
the finance lease liability at the end of the review period was EUR 3,341
thousand (3,460).
At the end of the period under review, the Group's cash and cash equivalents
amounted to EUR 3,438 thousand (2,272). In addition, the Group had unused
committed long- and short-term credit lines of EUR 5,794 thousand (6,912).
The Group's equity ratio at the end of the period was 51.5 percent (54.4).
Gearing was 47.3 percent (47.9).
INVESTMENTS
The Group's gross investments in the January-September period were EUR 1,876
thousand (5,609), or 3 percent of net sales (9). Most of the investments were
devoted to building store premises and to refurbishing the property in
Herttoniemi.
PERSONNEL
In the January-September period of 2013, the number of employees averaged 531
(481). At the end of the period, the Group had 522 employees (482), of whom 110
worked outside Finland (77). The number of employees working outside Finland
was broken down as follows: Scandinavia 35 (26), Central and Southern Europe 14
(12), North America 49 (37) and the Asia-Pacific region 12 (2). The personnel
at company-owned stores totalled 227 at the end of the period (194).
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation's Annual General Meeting have been
reported in the stock exchange release of 23 April 2013 and in the interim
report of 7 May 2013.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of September 2013, the company's fully paid-up share capital, as
recorded in the Trade Register, amounted to EUR 8,040,000 and the number of
shares totalled 8,089,610.
Shareholdings
According to the book-entry register, Marimekko had 7,474 shareholders at the
end of September 2013 (6,999). Of the shares, 21.2 percent were owned by
nominee-registered or non-Finnish holders (17.3). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President and CEO of the company was 1,343,930 (1,168,930), representing 16.6
percent of the number and voting rights of the company's shares (14.5).
The largest shareholders according to the book-entry register on 30 September
2013
Number of shares Percentage of shares
and votes and votes
--------------------------------------------------------------------------------
1. Muotitila Ltd 1,297,700 16.04
--------------------------------------------------------------------------------
2. Semerca Investments SA 850,377 10.51
--------------------------------------------------------------------------------
3. Varma Mutual Employment Pension 385,920 4.77
Insurance Company
--------------------------------------------------------------------------------
4. ODIN Finland 344,251 4.26
--------------------------------------------------------------------------------
5. Veritas Pension Insurance Company 220,000 2.72
--------------------------------------------------------------------------------
6. Ilmarinen Mutual Pension 215,419 2.66
Insurance Company
--------------------------------------------------------------------------------
7. Keva 197,754 2.44
--------------------------------------------------------------------------------
8. Danske Fund Finnish Small Cap 155,000 1.92
--------------------------------------------------------------------------------
9. OP-Finland Small Firm Fund 151,197 1.87
--------------------------------------------------------------------------------
10. Mutual Fund Tapiola Finland 136,395 1.69
--------------------------------------------------------------------------------
Total 3,954,013 48.88
--------------------------------------------------------------------------------
Nominee-registered and 1,716,392 21.22
non-Finnish holders
--------------------------------------------------------------------------------
Others 2,419,205 29.91
--------------------------------------------------------------------------------
Total 8,089,610 100.00
--------------------------------------------------------------------------------
Share trading and the company's market capitalisation
In the January-September period of 2013, a total of 501,325 Marimekko shares
were traded, representing 6.2 percent of the shares outstanding. The total
value of Marimekko's share turnover was EUR 5,808,324. The lowest price of the
Marimekko share was EUR 10.00, the highest was EUR 14.54 and the average price
was EUR 11.59. At the end of September, the closing price of the share was EUR
10.56. The company's market capitalisation on 30 September 2013 was EUR
85,426,282 (113,605,200).
Authorisations
At the end of the period, Marimekko's Board of Directors had an authorisation,
granted by the Annual General Meeting of 17 April 2012, to decide on a directed
offering of shares to the personnel, in deviation from the shareholders'
pre-emptive right, in one or more offerings. The total number of new shares to
be offered for subscription pursuant to the authorisation may not exceed
150,000 shares. The authorisation is in effect for two years from the date of
the Annual General Meeting's resolution. Marimekko arranged a personnel share
offering in 2012, in which a total of 49,610 new shares were subscribed for.
THE PRESIDENT AND CEO'S SICK LEAVE
In 2011, Marimekko's President and CEO Mika Ihamuotila underwent a minor repeat
neurosurgical operation. The after-effects of these operations sometimes
include epileptic symptoms which are treated with regular preventative
medication. Ihamuotila was on sick leave from 6 August to 15 September 2013 to
adjust to the epilepsy medication. For this time, his deputy was the company's
Chief Financial Officer Thomas Ekström, and Ihamuotila participated in the
company's decision-making on a part-time basis.
DISCUSSION IN FINLAND ABOUT MARIMEKKO'S PRINTS FROM THE PERSPECTIVE OF COPYRIGHT
In recent months, there has been discussion in Finland about some of
Marimekko's prints from the perspective of copyright. It is difficult to assess
the impact of this debate on Marimekko's business, especially as retail sales
and its prospects in Marimekko's sector in Finland deteriorated markedly in the
third quarter of the year. The company has initiated a number of actions to
further improve its design process.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The key strategic risks for the near future are associated with overall
economic trends and the consequent uncertainty in the operating environment as
well as the management of the company's expansion. The global economic cycle
and factors of uncertainty affect consumers' purchasing behaviour and buying
power in all of the company's market areas. The downturn in economic
conditions, which started from the severe problems of the international
financial markets, continues to dampen the prospects for retail as well as
Marimekko's prospects for growth and earnings.
Marimekko is undergoing a phase of dynamic internationalisation and change. The
distribution of products is being expanded in all key market areas. Unlike
before, the focus of growth has increasingly been on opening company-owned
stores outside Finland. This has called for larger or brand-new country
organisations in these market areas, which exerts a drag on the
cost-effectiveness of the company, especially now in the early stages of
expansion. Moreover, expanding the network of company-owned stores has
increased the company's investments, lease liabilities of store premises,
inventories, and the company's fixed costs. It also follows from this that a
larger portion of Group net sales comes from sales by the company's own retail
stores, which has increased the seasonality of the business as well as
dependence on the success of new company-owned stores and has shifted the bulk
of net sales and profit accumulation to the last quarter, thus having a
negative impact on profitability in the first half of the year. Furthermore,
partnerships and the choice of partners in the company's key market areas also
involve risks.
The company's ability to design, develop and commercialise new products that
meet consumers' expectations while maintaining profitable and effective
in-house production has an impact on the company's sales and profitability.
The company's operational risks prominently include those related to the
management and success of expansion projects, the operational reliability of
procurement and logistics processes, and changes in costs of raw materials and
other procurement items. As a result of new products, the share of in-house
production has diminished, and the company uses subcontractors for its
manufacturing to an increasing extent. Therefore, the company's dependence on
the supply chain has increased. Any delays or disturbances in supply or
fluctuations in the quality of products may have a temporary harmful impact on
business. As the operations are being expanded and diversified, risks related
to the management of inventories also increase.
Among the company's economic risks, those related to the structure of sales,
increased investments, price trends for factors of production, changes in cost
structure, increased operational costs, customers' liquidity, and changes in
exchange rates may have an impact on the company's financial status.
MARKET OUTLOOK AND GROWTH TARGETS
General uncertainty in the global economy is forecast to continue, and this may
affect consumers' purchasing behaviour in all of Marimekko's market areas. The
economic prospects for Europe are still gloomy, and growth is slow in the
region. However, the economic outlook has taken a slight upturn. In the United
States and Asia, economic forecasts are better than in Europe. In the United
States, the growth prospects have, however, slightly weakened in the past
months, but in Asia, the economic groth is anticipated to continue stronger
than in other regions. In Finland, market conditions are weak, and economic
forecasts by trade and industry for the next few months are clearly below
normal. Economic conditions are also expected to remain weak, and retail sales
are forecast to decline. (Confederation of Finnish Industries EK: Business
Tendency Survey, November 2013). In Finland, consumer confidence continued to
deteriorate in the third quarter of the year and the autumn was exceptionally
warm. Consequently, the downturn in the comparable sales of Marimekko's own
stores in Finland accelerated. The negative trend of company-owned stores in
Finland also continued in October, casting a shadow over prospects in Finland
for the end of the year and especially for Christmas trading which is important
to Marimekko.
The stores opened in 2012 and other major investments in expanding the
distribution network will bring a considerable increase in sales in 2013. The
main thrust in expansion this year is on openings of retailer-owned Marimekko
stores and shop-in-shops. The company will also invest in developing the
operations of the stores it opened in 2012. Marimekko announced in January that
the aim was to open 15 to 24 new stores this year. The number of stores to be
opened has been confirmed as 34, of which 6 will be company-owned.
The planned total investments for 2013 of the Marimekko Group are estimated as
being in excess of EUR 3 million. Most of the investments are devoted to
building new retail facilities and purchases of fittings.
FINANCIAL GUIDANCE
Marimekko revised its estimate of the 2013 operating profit on 16 May 2013 due
to the nonrecurring expenses arising from the statutory employer-employee
negotiations conducted by the company. The company reiterates the estimate it
announced on 16 May 2013, whereby the Marimekko Group's net sales are estimated
to grow by over 5 percent and operating profit excluding nonrecurring items is
forecast to be, at the most, at the same level as in 2012. The increased
proportion of retail sales will further boost the seasonal nature of business,
so the major portion of operating profit will, as is typical, accrue in the
second half of the year.
Helsinki, 7 November 2013
MARIMEKKO CORPORATION
Board of Directors
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2013, TABLE SECTION
The information presented in the interim report has not been audited. There may
be differences in totals due to rounding to the nearest thousand euros.
APPENDICES
Accounting principles
Formulas for key figures
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Segment information
Net sales by market area
Net sales by product line
Quarterly trend in net sales and earnings
ACCOUNTING PRINCIPLES
This interim report was prepared in accordance with IAS 34. The same accounting
principles were applied as in the 2012 financial statements, although at the
start of the financial year the company adopted certain new and amended IFRS
standards as described in the financial statements for 2012. The adoption of
new and updated standards has had no effect on the figures stated during the
period under review.
FORMULAS FOR KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 September
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial period)
Return on investment (ROI), %:
(Profit before taxes + interest and other financial expenses) X 100 / (Balance
sheet total - non-interest-bearing liabilities (average for the financial
period))
Equity ratio, %:
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
Net working capital:
Inventories + trade and other receivables + current tax assets - trade and
other payables - current tax liabilities
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/20 7-9/20 1-9/201 1-9/201 1-12/20
13 12 3 2 12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 24,875 24,214 68,542 62,723 88,471
--------------------------------------------------------------------------------
Other operating income 79 33 191 42 97
--------------------------------------------------------------------------------
Increase or decrease in inventories 240 -977 1,208 -1,452 -2,192
of completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -9,522 -7,522 -26,009 -20,764 -29,515
--------------------------------------------------------------------------------
Employee benefit expenses -5,590 -5,443 -20,351 -17,064 -24,384
--------------------------------------------------------------------------------
Depreciation and impairments -1,117 -930 -3,607 -2,529 -3,550
--------------------------------------------------------------------------------
Other operating expenses -5,871 -5,889 -19,327 -18,950 -26,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING PROFIT 3,093 3,486 645 2,006 2,019
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income -6 -107 40 31 48
--------------------------------------------------------------------------------
Financial expenses -204 -196 -594 -329 -654
--------------------------------------------------------------------------------
-210 -303 -554 -298 -606
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 2,883 3,183 91 1,708 1,413
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -1,089 -710 -501 -269 -313
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 1,794 2,473 -410 1,439 1,100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 1,794 2,473 -410 1,439 1,100
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.22 0.31 -0.05 0.18 0.14
calculated on the result
attributable to equity holders of
the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/20 7-9/20 1-9/20 1-9/20 1-12/2
13 12 13 12 012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 1,794 2,473 -410 1,439 1,100
--------------------------------------------------------------------------------
Items that could be reclassified to
profit or loss at a future point in
time
--------------------------------------------------------------------------------
Translation differences 90 40 128 9 10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 1,884 2,513 -282 1,448 1,110
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity 1,884 2,513 -282 1,448 1,110
holders of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2013 30.9.2012 31.12.2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2,238 2,515 2,663
--------------------------------------------------------------------------------
Tangible assets 20,670 21,202 21,976
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16 16
--------------------------------------------------------------------------------
Deferred tax assets - 495 322
--------------------------------------------------------------------------------
22,924 24,228 24,977
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,867 19,456 18,502
--------------------------------------------------------------------------------
Trade and other receivables 8,481 7,801 7,016
--------------------------------------------------------------------------------
Current tax assets 86 779 1,360
--------------------------------------------------------------------------------
Cash and cash equivalents 3,438 2,272 3,106
--------------------------------------------------------------------------------
30,872 30,308 29,984
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 53,796 54,536 54,961
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040 8,040
--------------------------------------------------------------------------------
Invested non-restricted equity reserve 502 - 502
--------------------------------------------------------------------------------
Translation differences 120 -9 -8
--------------------------------------------------------------------------------
Retained earnings 19,030 21,658 21,462
--------------------------------------------------------------------------------
Shareholders' equity, total 27,692 29,689 29,996
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities 18 522 480
--------------------------------------------------------------------------------
Provisions 101 - -
--------------------------------------------------------------------------------
Financial liabilities 7,206 13,088 9,317
--------------------------------------------------------------------------------
Finance lease liabilities 3,270 3,347 3,324
--------------------------------------------------------------------------------
10,594 16,957 13,121
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 9,439 7,827 11,775
--------------------------------------------------------------------------------
Financial liabilities 6,000 - -
--------------------------------------------------------------------------------
Finance lease liabilities 71 63 69
--------------------------------------------------------------------------------
15,510 7,890 11,844
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 26,104 24,847 24,965
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 53,796 54,536 54,961
--------------------------------------------------------------------------------
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-9/201 1-9/201 1-12/201
3 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -410 1,439 1,100
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 3,607 2,529 3,550
--------------------------------------------------------------------------------
Other non-cash transactions 101 - 143
--------------------------------------------------------------------------------
Financial income and expenses 554 298 606
--------------------------------------------------------------------------------
Taxes 501 269 313
--------------------------------------------------------------------------------
Cash flow before change in working capital 4,353 4,535 5,712
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -2,694 -210 4,674
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -117 688 930
non-interest-bearing trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in 80 1,571 2,401
inventories
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -2,657 -2,469 1,343
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial 1,659 4,325 10,386
items and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial -602 -188 -650
expenses
--------------------------------------------------------------------------------
Interest received 40 -93 47
--------------------------------------------------------------------------------
Taxes paid -703 -1,505 -1,178
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 393 2,539 8,605
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -1,876 -5,609 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -1,876 -5,609 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proceeds from share issue - - 502
--------------------------------------------------------------------------------
Short-term loans drawn 6,000 - -
--------------------------------------------------------------------------------
Long-term loans drawn - 8,144 4,373
--------------------------------------------------------------------------------
Payments of long-term loans -2,111 - -
--------------------------------------------------------------------------------
Payments of finance lease liabilities -52 - -
--------------------------------------------------------------------------------
Dividends paid -2,022 -4,422 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES 1,815 3,722 453
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 332 652 1,486
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 3,106 1,620 1,620
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 3,438 2,272 3,106
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Invested Translation Retained Shareholde
capita non-restricted differences earnings rs'
l equity reserve equity,
total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 -18 24,641 32,663
equity
1 January 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 1,439 1,439
period
--------------------------------------------------------------------------------
Translation 9 9
differences
--------------------------------------------------------------------------------
Total 9 1,439 1,448
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -4,422 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 -9 21,658 29,689
equity
30 September 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
1 January 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -410 -410
period
--------------------------------------------------------------------------------
Translation 128 128
differences
--------------------------------------------------------------------------------
Total 128 -410 -282
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 120 19,030 27,692
equity
30 September 2013
--------------------------------------------------------------------------------
KEY FIGURES
1-9/2013 1-9/2012 Change, % 1-12/2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.05 0.18 -128 0.14
--------------------------------------------------------------------------------
Equity per share, EUR 3.42 3.69 -7 3.71
--------------------------------------------------------------------------------
Return on equity (ROE), % -1.9 6.2 3.5
--------------------------------------------------------------------------------
Return on investment (ROI), % 0.9 6.0 4.1
--------------------------------------------------------------------------------
Equity ratio, % 51.5 54.4 54.6
--------------------------------------------------------------------------------
Gearing, % 47.3 47.9 32.0
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 1,876 5,609 -67 7,582
--------------------------------------------------------------------------------
Gross investments, % of net sales 3 9 9
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 39,372 37,321 5 39,986
--------------------------------------------------------------------------------
Average personnel 531 481 10 497
--------------------------------------------------------------------------------
Personnel at the end of the period 522 482 8 535
--------------------------------------------------------------------------------
Number of shares at the end of the 8,089,610 8,040,000 8,089,610
period
--------------------------------------------------------------------------------
Number of shares outstanding, 8,089,610 8,040,000 8,046,252
average
--------------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-9/2013 1-9/2012 Change, % 1-12/2012
------------------------------------------------------------
------------------------------------------------------------
Marimekko business
------------------------------------------------------------
Net sales 68,542 62,723 9 88,471
------------------------------------------------------------
Operating result 645 2,006 -68 2,019
------------------------------------------------------------
Assets 53,796 54,536 -1 54,961
------------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------------------------
Finland 14,272 14,278 0 37,454 36,789 2 52,344
--------------------------------------------------------------------------------
Retail sales 9,807 9,768 0 25,315 23,904 6 34,000
--------------------------------------------------------------------------------
Wholesale sales 4,375 4,350 1 11,821 12,456 -5 17,546
--------------------------------------------------------------------------------
Royalties 91 160 -43 319 429 -26 798
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,259 2,066 9 5,858 5,793 1 7,856
--------------------------------------------------------------------------------
Retail sales 1,185 946 25 3,032 2,355 29 3,299
--------------------------------------------------------------------------------
Wholesale sales 1,073 1,120 -4 2,826 3,435 -18 4,554
--------------------------------------------------------------------------------
Royalties - - - 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Central and Southern 2,005 2,167 -7 5,915 5,908 0 7,783
Europe
--------------------------------------------------------------------------------
Retail sales 324 366 -12 954 1,066 -10 1,492
--------------------------------------------------------------------------------
Wholesale sales 1,656 1,777 -7 4,886 4,763 3 6,185
--------------------------------------------------------------------------------
Royalties 25 24 4 75 79 -5 106
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,077 2,214 -6 6,352 4,934 29 7,743
--------------------------------------------------------------------------------
Retail sales 1,366 1,198 14 3,966 2,278 74 4,020
--------------------------------------------------------------------------------
Wholesale sales 609 915 -33 2,015 2,238 -10 3,193
--------------------------------------------------------------------------------
Royalties 101 101 0 371 418 -11 530
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,263 3,489 22 12,963 9,299 39 12,745
--------------------------------------------------------------------------------
Retail sales 489 - 1,496 - 655
--------------------------------------------------------------------------------
Wholesale sales 3,774 3,488 8 11,465 9,296 23 12,087
--------------------------------------------------------------------------------
Royalties 0 1 -94 2 3 -41 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 10,603 9,936 7 31,088 25,934 20 36,127
total
--------------------------------------------------------------------------------
Retail sales 3,364 2,510 34 9,448 5,699 66 9,466
--------------------------------------------------------------------------------
Wholesale sales 7,113 7,300 -3 21,192 19,732 7 26,019
--------------------------------------------------------------------------------
Royalties 126 126 0 448 503 -11 642
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 24,875 24,214 3 68,542 62,723 9 88,471
--------------------------------------------------------------------------------
Retail sales 13,170 12,278 7 34,763 29,603 17 43,466
--------------------------------------------------------------------------------
Wholesale sales 11,488 11,650 -1 33,013 32,188 3 43,565
--------------------------------------------------------------------------------
Royalties 217 286 -24 766 932 -18 1,440
--------------------------------------------------------------------------------
NET SALES BY PRODUCT LINE
(EUR 1,000) 7-9/2013 7-9/2012 1-9/2013 1-9/2012 1-12/2012
----------------------------------------------------------------------
----------------------------------------------------------------------
Clothing 9,162 9,189 25,488 23,125 30,936
----------------------------------------------------------------------
Interior decoration 9,617 9,146 27,039 25,422 38,122
----------------------------------------------------------------------
Bags 6,095 5,879 16,015 14,176 19,413
----------------------------------------------------------------------
TOTAL 24,875 24,214 68,542 62,723 88,471
----------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 7-9/2013 4-6/2013 1-3/2013 10-12/2012
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 24,875 22,957 20,710 25,748
-----------------------------------------------------------------
Operating result 3,093 -1,158 -1,290 13
-----------------------------------------------------------------
Earnings per share, EUR 0.22 -0.13 -0.14 -0.04
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 7-9/2012 4-6/2012 1-3/2012 10-12/2011
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 24,214 19,701 18,808 23,581
-----------------------------------------------------------------
Operating result 3,486 -545 -935 1,645
-----------------------------------------------------------------
Earnings per share, EUR 0.31 -0.03 -0.10 0.18
-----------------------------------------------------------------