{"segments": [{"speakerId": "S1", "sentences": [{"start": 0, "end": 0, "text": "Good afternoon."}, {"start": 1, "end": 9, "text": "My name is Anna Tuominen, and it is my pleasure to welcome you to the Marimekko Q3 results webcast today with me."}, {"start": 9, "end": 16, "text": "I have our President and CEO, Tiina Alahuhta-Kasko, and in a short while, she will tell you in detail about our results."}, {"start": 17, "end": 23, "text": "After that, we'll have time for your questions, with Tiina and our CFO, Elena Anker, answering."}, {"start": 23, "end": 31, "text": "I would like to invite you to use the chat function during the presentation to record your questions for the Q&A session."}, {"start": 32, "end": 34, "text": "Without further ado, Tiina, please go ahead."}]}, {"speakerId": "S2", "sentences": [{"start": 34, "end": 38, "text": "Thank you, Anna, and good afternoon also on my behalf."}, {"start": 38, "end": 45, "text": "And it is my pleasure and honor to share with you our third quarter interim report results.\n\n"}, {"start": 46, "end": 49, "text": "So how did we do in the third quarter?"}, {"start": 49, "end": 51, "text": "The answer is, we did well."}, {"start": 51, "end": 60, "text": "Namely, despite the continued challenging macroeconomic environment, Marimekko's net sales and operating profit increased in the third quarter.\n\n"}, {"start": 60, "end": 66, "text": "Our net sales in total grew by 8%, landing at €50.8 million."}, {"start": 66, "end": 76, "text": "Net sales were driven and boosted in particular by the increased wholesale sales both in Finland and abroad, and in total, our net sales in the domestic market improved."}, {"start": 76, "end": 87, "text": "Finland increased by 7% and our international sales increased by 8%, driven by the growth in net sales which are comparable.\n\n"}, {"start": 87, "end": 96, "text": "Operating profit improved by 14% to €12.7 million, representing 24.9% of net sales."}, {"start": 98, "end": 119, "text": "Overall, we can see at Marimekko that our continued strong development in our business, paired with our good financial position, gives us a solid foundation to continue our efforts and investments to scale up both the global Marimekko brand phenomenon as well as our profitable growth."}, {"start": 119, "end": 126, "text": "We firmly believe that the winning brands of the future will be determined in more challenging market environments.\n\n"}, {"start": 126, "end": 131, "text": "But let's look at the drivers behind our results in more detail.\n\n"}, {"start": 132, "end": 133, "text": "Starting with net sales."}, {"start": 133, "end": 145, "text": "As mentioned in the third quarter, our net sales grew by 8%, and they were boosted especially by the increased wholesale sales both in Finland and internationally in our important domestic market.\n\n"}, {"start": 145, "end": 146, "text": "Finland.\n\n"}, {"start": 146, "end": 157, "text": "Our net sales grew by 7%, boosted especially by the increased wholesale sales, which were partly attributable to the domestic non-recurring promotional deliveries."}, {"start": 158, "end": 161, "text": "Then our retail sales in Finland fell short of the strong comparison period."}, {"start": 161, "end": 169, "text": "But what is good to remember is that when we look at the cumulative first nine months, the retail sales in Finland also grew.\n\n"}, {"start": 171, "end": 186, "text": "Then in our company's second-largest market, the Asia-Pacific region, our net sales increased by 8% due to growth in wholesale sales, namely our wholesale sales actually grew in the Asia-Pacific region."}, {"start": 186, "end": 192, "text": "And this of course includes the sales to our franchise partners, which increased by 10%."}, {"start": 194, "end": 210, "text": "Retail sales in the Asia-Pacific region were on par with the comparison period.\n\n"}, {"start": 212, "end": 230, "text": "Then, when we look at the first nine months of the year, our net sales increased by 5% to €134.8 million, boosted especially by the growth in wholesale sales both in Europe and in the Asia-Pacific region, as well as the growth in retail sales in Scandinavia and Finland."}, {"start": 230, "end": 238, "text": "Our net sales in Finland grew by 3%, especially due to the positive development of our omnichannel retail sales."}, {"start": 238, "end": 250, "text": "What we're also happy about is that our wholesale sales in Finland grew in the first nine months, even with the non-recurring promotional deliveries in domestic wholesale sales being considerably below the comparable year.\n\n"}, {"start": 251, "end": 263, "text": "Then, when we look at the international markets, our international net sales increased by a notable 8% as both wholesale sales and omnichannel retail sales grew in almost all international market areas."}, {"start": 264, "end": 272, "text": "Our wholesale sales also increased in the Asia-Pacific region, with our retail sales being on par with the same period the year before."}, {"start": 273, "end": 282, "text": "However, the market area's net sales decreased as no licensing income was recorded in the period under review, unlike in the strong comparison year.\n\n"}, {"start": 282, "end": 296, "text": "What is good to remember, though, is that Marimekko recognizes the net sales from licensing income according to the geographical location of our contractual licensing partners' domicile."}, {"start": 297, "end": 300, "text": "Then, if we exclude licensing."}, {"start": 300, "end": 307, "text": "In the first nine months of the year, our net sales in the Asia-Pacific region would have grown by 4%.\n\n"}, {"start": 309, "end": 320, "text": "Then, when we look at our net sales development based on market area or by product line, there are no major differences here.\n\n"}, {"start": 320, "end": 348, "text": "However, what I would like to highlight is that in the first nine months, particularly strong growth was seen in the ready-to-wear category."}, {"start": 350, "end": 366, "text": "Our omnichannel store network, of course, constantly develops and today, 169 Marimekko stores serve our customers, in addition to our online store already serving in 39 countries.\n\n"}, {"start": 366, "end": 374, "text": "And in terms of numbers, the highest number of Marimekko stores has long been in the Asia-Pacific region.\n\n"}, {"start": 375, "end": 382, "text": "Our net sales in the first nine months amounted to €286.9 million."}, {"start": 383, "end": 402, "text": "And then if we look at our profitability and how it has developed in the third quarter, as mentioned at the start of this presentation, our comparable operating profit improved by a strong 14%, amounting to 24.9% of net sales, which is a very high level."}, {"start": 402, "end": 409, "text": "Our operating profit was €12.5 million, and the comparable operating profit totaled €12.7 million."}, {"start": 410, "end": 424, "text": "Of course, it was the increased net sales that supported the strong operating profit."}, {"start": 425, "end": 441, "text": "When we look at the drivers behind the different factors, the relative sales margin was weakened by higher discounts compared to the comparison period, while on the other hand, what supported the relative sales margin was the strong product margins.\n\n"}, {"start": 442, "end": 445, "text": "Fixed costs grew due to increased personal expenses."}, {"start": 445, "end": 447, "text": "And there are two main reasons behind those.\n\n"}, {"start": 447, "end": 459, "text": "One is the general pay increases in different markets, and the other is the increased salary cost in stores to support the retail growth.\n\n"}, {"start": 461, "end": 473, "text": "Then, when we look at the profitability development from a cumulative viewpoint, in the first nine months, our cumulative operating profit grew by 4% and landed at €23.1 million."}, {"start": 473, "end": 480, "text": "The comparable operating profit number was €23.5 million, representing 17.5% of our net sales."}, {"start": 480, "end": 483, "text": "Again, very similar drivers were behind us in the third quarter."}, {"start": 483, "end": 488, "text": "So, of course, it was the increased net sales that strengthened the operating profit.\n\n"}, {"start": 489, "end": 499, "text": "While on the other hand, it was the weakened relative sales margin and the higher fixed costs that had a negative impact on the operating profit development in the first nine months.\n\n"}, {"start": 500, "end": 515, "text": "The relative sales margin was negatively affected, in particular by the higher discounts compared to the comparison period, and as previously estimated, by the significantly lower licensing income, in addition to unrealized exchange rate differences.\n\n"}, {"start": 515, "end": 521, "text": "Then again, the operating profit was supported by strong product margins."}, {"start": 521, "end": 525, "text": "The relative sales margin was supported by strong product margins.\n\n"}, {"start": 525, "end": 526, "text": "Fixed costs."}, {"start": 527, "end": 536, "text": "Similarly, as in the third quarter, costs increased due to personal expenses, but also due to investments in digital development."}, {"start": 536, "end": 549, "text": "And in the third quarter, we continued our determined efforts to build our international brand and to grow and nurture our international customer community.\n\n"}, {"start": 550, "end": 554, "text": "A lot of exciting events took place in the third quarter.\n\n"}, {"start": 554, "end": 575, "text": "For example, we launched collaboration collections with the iconic Finnish brands Artek and Kalevala Jewelry, and these collaborations once again provided new perspectives, or rather introduced new forms of timeless art of printmaking to our customers around the world."}, {"start": 576, "end": 582, "text": "In the third quarter, we also organized two fashion shows during Copenhagen Fashion Week.\n\n"}, {"start": 582, "end": 588, "text": "We showcased our creative vision and a new collection for Summer 2026."}, {"start": 588, "end": 599, "text": "And in Bangkok, we celebrated the 10th anniversary of Marimekko in Thailand with a fashion show that showcased our fall collection to our Marimekko community.\n\n"}, {"start": 601, "end": 610, "text": "We also organize various events around the world, truly building up and reinforcing our brand desirability and increasing our awareness."}, {"start": 610, "end": 631, "text": "For instance, the Field of Flowers touring exhibition that showcases 25 new Marimekko floral prints, and the Icons of Tomorrow exhibition, which started its tour from Japan early in the year, continued its journey in the third quarter to Taipei, Tokyo, Ho Chi Minh City, and Osaka.\n\n"}, {"start": 633, "end": 643, "text": "Then at the same time, of course, the Marimekko omnichannel store network was developed, and a completely new Marimekko store opened in Taipei.\n\n"}, {"start": 643, "end": 651, "text": "In addition to that, seven Marimekko pop-up stores, mostly in Asia, delighted our customers and increased our brand awareness.\n\n"}, {"start": 652, "end": 673, "text": "After the review period, we also celebrated the opening of a new Marimekko flagship store in Hong Kong when a Marimekko store opened on Leighton Road in the busy Causeway Bay area back in 2012, found its new home in a renewed space on the same Leighton Road street."}, {"start": 673, "end": 687, "text": "Asia, of course, plays a really important role in Marimekko's internationalization and growth strategy, and we certainly see significant growth opportunities in Asia for Marimekko in the long term.\n\n"}, {"start": 688, "end": 698, "text": "Something exciting that took place also in the third quarter was, of course, the lead-up to the launch of Marimekko in Paris."}, {"start": 699, "end": 712, "text": "Namely, we opened the French language version of our online store in August and then started to build up our presence in Paris, the most important fashion capital in the world, through a pop-up store in Le Bon Marché.\n\n"}, {"start": 712, "end": 718, "text": "And then after the review period, we launched a new pop-up store in Galeries Lafayette.\n\n"}, {"start": 718, "end": 729, "text": "And finally, just last week we celebrated the historic opening of the first-ever Marimekko Paris flagship store in Le Marais, Paris.\n\n"}, {"start": 729, "end": 752, "text": "Of course, being such an important fashion capital plays an even bigger role in the global Marimekko ecosystem, namely, its impacts in terms of brand positioning and awareness creation span beyond Europe to also Asia and North America, this way supporting our wider international growth efforts."}, {"start": 753, "end": 756, "text": "Then moving on to our outlook for 2025."}, {"start": 757, "end": 758, "text": "First, a few words in general.\n\n"}, {"start": 758, "end": 778, "text": "So, of course, there are still significant uncertainties related to the development of the global economy, such as the tensions related to geopolitics and trade relations."}, {"start": 778, "end": 795, "text": "Purchasing power and behavior can have a weakening impact on Marimekko."}, {"start": 796, "end": 798, "text": "Then a few words about seasonality.\n\n"}, {"start": 798, "end": 808, "text": "So due to the seasonal nature of our business, a major portion of our company's euro-denominated net sales and operating results are traditionally generated during the second half of the year.\n\n"}, {"start": 809, "end": 818, "text": "It is important to always remember that the timing and size of non-recurring promotional deliveries in Finnish wholesale sales typically vary on an annual basis."}, {"start": 819, "end": 832, "text": "And it's important to remember that, as we have communicated since the beginning of this year, the licensing income in 2025 is forecasted to be significantly below the previous year's record level.\n\n"}, {"start": 833, "end": 841, "text": "Then moving on to net sales development, starting from Finland, our important home market, despite the weak market situation."}, {"start": 841, "end": 849, "text": "The net sales in our important home market, Finland, are expected to be approximately at the level of the previous year or increase slightly."}, {"start": 850, "end": 858, "text": "Sales in Finland are impacted by the weak general economy and low consumer confidence, as well as the development of purchasing power and behavior."}, {"start": 859, "end": 866, "text": "In addition, the tactical operating environment continues to have an impact in 2025."}, {"start": 866, "end": 876, "text": "So this year, the non-recurring promotional deliveries in wholesale sales are estimated to be significantly lower than in the comparable year, with a clear weighting towards the second half of the year."}, {"start": 876, "end": 879, "text": "Then moving on to international sales.\n\n"}, {"start": 879, "end": 884, "text": "So altogether, we estimate our international sales to grow in 2025."}, {"start": 885, "end": 902, "text": "Then when we look at our second largest region, the Asia-Pacific region more closely, this year we expect our net sales to be approximately at the level of the previous year, or slightly increased."}, {"start": 902, "end": 921, "text": "It's important to note that a significant part of our licensing income in 2024 was recorded as net sales in the Asia-Pacific region."}, {"start": 922, "end": 938, "text": "Wholesale sales in the Asia-Pacific region, which includes our sales to our franchise partners, are expected to also increase in 2025, despite private consumption in China becoming more cautious during the year following general economic uncertainties."}, {"start": 938, "end": 943, "text": "Our long-term growth prospects in the Asia-Pacific region remain unchanged.\n\n"}, {"start": 944, "end": 962, "text": "All the brick and mortar Marimekko stores and most online stores in Asia are partner-owned, and this year our aim continues to be to open approximately 10 to 15 new Marimekko stores and shop-in-shops."}, {"start": 964, "end": 967, "text": "Then a few words about growth, investments, and costs.\n\n"}, {"start": 967, "end": 971, "text": "We, of course, develop our business with a long-term view."}, {"start": 971, "end": 976, "text": "And our plan is to continue scaling our profitable growth in the upcoming years.\n\n"}, {"start": 976, "end": 983, "text": "Thus, our fixed costs are expected to increase compared to the previous year, and our marketing expenses are also expected to rise."}, {"start": 983, "end": 995, "text": "The increased tariffs in the US have a direct impact on only a small part of our business, as the entire North American market accounted for 6% of our group's net sales in 2024."}, {"start": 995, "end": 1002, "text": "Overall, our company has initiated diverse measures to mitigate the negative impacts of the tariffs.\n\n"}, {"start": 1003, "end": 1019, "text": "The early commitments of product orders from partner suppliers, which is typical of our industry and partly further accentuated due to various factors, weaken our ability to optimize product orders and respond to rapid changes in demand and supply environments, which also increases risks."}, {"start": 1020, "end": 1034, "text": "We, of course, work actively on all fronts to ensure functioning production and logistics chains, to mitigate increased costs and other negative impacts, to avoid delays, and to enhance inventory management.\n\n"}, {"start": 1035, "end": 1039, "text": "And finally, we reiterate our financial guidance for 2025.\n\n"}, {"start": 1039, "end": 1044, "text": "So, our net sales for 2025 are expected to grow from the previous year."}, {"start": 1044, "end": 1050, "text": "And our comparable operating profit margin is estimated to be approximately 16 to 19%."}, {"start": 1050, "end": 1068, "text": "Of course, the rapid changes and uncertainties in global trade policy, along with the development of consumer confidence and purchasing power in our key markets, as well as possible disruptions in global supply chains, among others, create volatility in the outlook for 2025."}, {"start": 1068, "end": 1076, "text": "But with these words, I would like to end my presentation and open up for the Q&A and invite Anand Elena to join me here on stage.\n\n"}]}, {"speakerId": "S1", "sentences": [{"start": 1076, "end": 1077, "text": "Then, when we look at our second largest region, the Asia-Pacific region, more closely, in the Asia-Pacific region this year, we expect our net sales to be approximately at the level of the previous year or increase slightly."}, {"start": 1077, "end": 1077, "text": "Tiina."}, {"start": 1078, "end": 1081, "text": "Let's start by setting the scene.\n\n"}, {"start": 1081, "end": 1083, "text": "More so."}, {"start": 1083, "end": 1084, "text": ""}, {"start": 1087, "end": 1091, "text": "You mentioned the challenging market environment."}, {"start": 1091, "end": 1103, "text": "Can you describe that a bit more, or are there specific geographical areas or countries where you see more difficulties?"}]}, {"speakerId": "S2", "sentences": [{"start": 1103, "end": 1109, "text": "I think this is referring to what we all read in the news every day."}, {"start": 1109, "end": 1112, "text": "So the overall uncertainty is impacting the global economy.\n\n"}, {"start": 1112, "end": 1119, "text": "The tensions in the trade policies, the tariffs, and how they may impact consumer confidence."}, {"start": 1119, "end": 1121, "text": "And in turn, this influences consumer behavior."}, {"start": 1121, "end": 1126, "text": "So, this is what we're referring to when it comes to the more challenging market environment."}, {"start": 1126, "end": 1139, "text": "And then of course, specifically, we have mentioned that in our important home market in Finland, the weak consumer confidence and overall the tactical nature of the operating environment continue to impact.\n\n"}]}, {"speakerId": "S1", "sentences": [{"start": 1139, "end": 1143, "text": "And that, of course, has a more direct impact on retail sales."}, {"start": 1143, "end": 1146, "text": "We have a few questions related to retail sales."}, {"start": 1146, "end": 1152, "text": "If one looks at the omnichannel retail sales, in total, they were flat year-on-year in Q3."}, {"start": 1153, "end": 1158, "text": "Is there something timing-related here, or should one rather look at it country by country?"}, {"start": 1158, "end": 1159, "text": "The development?"}, {"start": 1159, "end": 1161, "text": "Or something like that?"}, {"start": 1161, "end": 1165, "text": "At least in Finland, there was a small decrease, but in many other countries, the retail sales also grew.\n\n"}]}, {"speakerId": "S2", "sentences": [{"start": 1165, "end": 1166, "text": "And then, of course, specifically, we have mentioned that in our important home market in Finland, the weak consumer confidence and overall the tactical nature of the operating environment continue to impact.\n\n"}, {"start": 1166, "end": 1175, "text": "I think what I would highlight here is that when we look at the third quarter, our retail sales in the international markets actually increased by 13%.\n\n"}, {"start": 1175, "end": 1178, "text": "So, very strong omnichannel retail development.\n\n"}, {"start": 1179, "end": 1188, "text": "And actually, the retail sales developed very positively in most of the international markets."}, {"start": 1188, "end": 1193, "text": "Then in Finland, they fell short in the third quarter compared to the very strong comparison period.\n\n"}, {"start": 1193, "end": 1200, "text": "But it is important to remember that in Finland, when we look at the first nine months, omnichannel retail sales grew."}]}, {"speakerId": "S1", "sentences": [{"start": 1200, "end": 1206, "text": "There was also a slight decrease in the North American figures, both in retail sales and in wholesale sales in Q3.\n\n"}, {"start": 1207, "end": 1212, "text": "Should one look there for the cumulative figures as well, or is there something specific for Q3?\n\n"}]}, {"speakerId": "S2", "sentences": [{"start": 1213, "end": 1232, "text": "So as we've explained, when it comes to certain markets like North America and Europe, where the role of wholesale is particularly important, there might be seasonal fluctuations that may impact.  "}, {"start": 1232, "end": 1237, "text": "So, I think that overall, it's always good to look at the longer term development."}, {"start": 1237, "end": 1241, "text": "Good to look at the longer term development, the cumulative development.\n\n"}, {"start": 1241, "end": 1246, "text": "So for example, in North America, cumulatively our net sales have increased by 5%.\n\n"}, {"start": 1246, "end": 1249, "text": "And there are cumulative retail sales."}, {"start": 1249, "end": 1250, "text": "Development has actually been double-digit.\n\n"}, {"start": 1250, "end": 1255, "text": "So, there was a 10% growth in the first nine months of the year.\n\n"}]}, {"speakerId": "S1", "sentences": [{"start": 1255, "end": 1255, "text": "Thanks, Tiina."}, {"start": 1256, "end": 1260, "text": "Maybe I can invite Elena to discuss a bit about brand sales."}, {"start": 1260, "end": 1263, "text": "We have a few questions around them."}, {"start": 1263, "end": 1263, "text": "Could you clarify what you're referring to?"}, {"start": 1264, "end": 1272, "text": "So first of all, overall, why are brand sales down in both Q3 and year to date, especially outside Finland?"}, {"start": 1272, "end": 1285, "text": "And more specifically in Asia-Pacific, is there something behind this or will that pick up in the latter part of the year, the remaining months?\n\n"}, {"start": 1286, "end": 1286, "text": "And then, of course, we have specifically mentioned that in our important home market in Finland, the weak consumer confidence and overall tactical nature of the operating environment continues to impact."}, {"start": 1287, "end": 1288, "text": "So let me start from."}]}, {"speakerId": "S3", "sentences": [{"start": 1288, "end": 1293, "text": "First, let me explain why we report this type of KPI as a brand sale."}, {"start": 1294, "end": 1301, "text": "So we actually want to show the reach of the brand by announcing this kind of brand sales KPI."}, {"start": 1301, "end": 1309, "text": "This illustrates how much estimated retail value sales we have in each of the periods."}, {"start": 1309, "end": 1313, "text": "And that is calculated by adding to our retail sales.\n\n"}, {"start": 1313, "end": 1314, "text": "Sales."}, {"start": 1314, "end": 1321, "text": "The estimated value of our wholesale channel sales in their retail value."}, {"start": 1321, "end": 1329, "text": "And then, in addition to that, we also add the estimated value of the licensed products at their retail value."}, {"start": 1329, "end": 1337, "text": "And regarding license products, they are reported when the products are sold globally.\n\n"}, {"start": 1338, "end": 1339, "text": "So that is different.\n\n"}, {"start": 1339, "end": 1349, "text": "Slightly different from how we actually book the license income, which is of course recorded according to the normal revenue recognition."}, {"start": 1349, "end": 1357, "text": "But here we want to really show the reach of the Marimekko products in a larger context."}, {"start": 1357, "end": 1365, "text": "So actually, you can see that there can be quite a deviation between the net sales and the brand sales."}, {"start": 1365, "end": 1371, "text": "But that is related to the different timings of the retail sales."}, {"start": 1371, "end": 1373, "text": "So I’m not saying you shouldn’t worry."}, {"start": 1373, "end": 1377, "text": "You shouldn't think too much about these sort of negative numbers here."}, {"start": 1378, "end": 1400, "text": "Regarding licensing, I could also continue from that perspective that, of course, as we've discussed many times, we have two different kinds of licensing: more traditional licensing where we have more, so to say, ongoing contracts."}, {"start": 1400, "end": 1408, "text": "But then we have these brand collaboration licensing contracts, which are not something that will be similar every year."}, {"start": 1409, "end": 1413, "text": "That is also related to the negotiation rhythms.\n\n"}, {"start": 1413, "end": 1416, "text": "And that's different with different companies."}, {"start": 1416, "end": 1423, "text": "So we don't know at the start of the year exactly how much licensing income we will get during that year."}, {"start": 1423, "end": 1429, "text": "So that is one of the income streams as well, which we need to partially forecast ourselves."}, {"start": 1429, "end": 1435, "text": "And they are also partially linked with the sales volumes of licensing partners as well."}]}, {"speakerId": "S1", "sentences": [{"start": 1435, "end": 1441, "text": "We could actually continue with that, as there are a couple of questions related to licensing income and the outlook for this year.\n\n"}]}, {"speakerId": "S3", "sentences": [{"start": 1441, "end": 1442, "text": "Yes."}]}, {"speakerId": "S1", "sentences": [{"start": 1442, "end": 1448, "text": "As you said, those are partly estimated revenues."}, {"start": 1448, "end": 1454, "text": "At the beginning of the year, Marimekko guided that the licensing income would be considerably lower this year."}, {"start": 1454, "end": 1460, "text": "And at that time, it was also estimated that the net sales in the Asia-Pacific region would grow."}, {"start": 1461, "end": 1470, "text": "And now, the outlook for the Asia-Pacific region is to be somewhat slightly above or at the previous year's level.\n\n"}, {"start": 1471, "end": 1472, "text": "So what has changed?\n\n"}, {"start": 1472, "end": 1481, "text": "From the end of the June to August period when Q2 results were published until now.\n\n"}]}, {"speakerId": "S3", "sentences": [{"start": 1482, "end": 1489, "text": "So of course, it's been a couple of months since we released the Q2 results."}, {"start": 1489, "end": 1500, "text": "Exactly, when we do the sales forecasting for all of the channels, we gather our best understanding of how the sales will develop."}, {"start": 1500, "end": 1505, "text": "So that covers all of the channels."}, {"start": 1505, "end": 1514, "text": "But then, of course, we have mentioned something regarding China in particular, like the consumer sentiment there."}, {"start": 1515, "end": 1517, "text": "But I would say that it is coming from different streams."}]}, {"speakerId": "S4", "sentences": [{"start": 1517, "end": 1518, "text": "And I think."}]}, {"speakerId": "S2", "sentences": [{"start": 1518, "end": 1529, "text": "You know, in the early part of the year when we gave the market outlook, we estimated that licensing this year, after two record-level years, will be significantly lower.\n\n"}, {"start": 1529, "end": 1536, "text": "Then it's good to remember that licensing income consists of several different kinds of agreements: traditional licensing, brand collaborations, and so forth.\n\n"}, {"start": 1536, "end": 1548, "text": "At this point in the year, as we approach year-end, we have specified the impact of licensing income to have a weakening effect on the Asia Pacific net sales."}, {"start": 1548, "end": 1552, "text": "So it's natural for us at this point in time of the year to specify it.\n\n"}]}, {"speakerId": "S1", "sentences": [{"start": 1552, "end": 1554, "text": "Looking at the Asia region.\n\n"}, {"start": 1554, "end": 1558, "text": "Are there some countries where you've seen weaker development than you expected?\n\n"}, {"start": 1558, "end": 1566, "text": "For example, in China, has the demand overall there decreased since August?"}, {"start": 1566, "end": 1570, "text": "Or is there something else that one should look at in the Asia-Pacific region?"}]}, {"speakerId": "S2", "sentences": [{"start": 1570, "end": 1573, "text": "So actually, when we look at the Asia-Pacific region.\n\n"}, {"start": 1573, "end": 1591, "text": "So if we look at the retail, wholesale, and licensing sales in the Asia-Pacific region, we have sales to franchise partners in Asia that predominantly operate the Marimekko omnichannel retail there."}, {"start": 1591, "end": 1613, "text": "And what we have also specified today is that in 2025, our wholesale sales in the Asia-Pacific region are estimated to grow, despite the fact that we can see that during the course of the year, private consumption in China has become more cautious due to general macroeconomic uncertainty."}, {"start": 1613, "end": 1617, "text": "I think there is good development there despite all the uncertainties in the world."}]}, {"speakerId": "S1", "sentences": [{"start": 1618, "end": 1618, "text": "Thank you."}, {"start": 1619, "end": 1625, "text": "There are still a couple of questions here, but if you have questions in mind, now would be a good time to type them in.\n\n"}, {"start": 1625, "end": 1628, "text": "One question related to the Paris flagship store."}, {"start": 1628, "end": 1630, "text": "Were you satisfied with the launch?"}, {"start": 1630, "end": 1631, "text": "How has it performed?"}, {"start": 1631, "end": 1636, "text": "And can we expect it to contribute to the sales already in Q4?\n\n"}]}, {"speakerId": "S2", "sentences": [{"start": 1636, "end": 1645, "text": "So first of all, I had the pleasure of being in Paris for the launch of the historic first-ever Marimekko Paris flagship store."}, {"start": 1645, "end": 1669, "text": "I can say that witnessing a queue of more than 100 meters of brand enthusiasts lining up before the store opened symbolized a very strong and successful start for evolving our presence in the most important fashion capital of the year.\n\n"}, {"start": 1669, "end": 1687, "text": "As mentioned already in my presentation, Paris has a much bigger impact than just its presence in Paris or in France, namely because of the role of the city and its attraction both to the local customers and to a very global audience of tourists."}, {"start": 1687, "end": 1697, "text": "We can see that the positioning and brand awareness effects of our presence in Paris can expand even to Asia and North America."}, {"start": 1697, "end": 1711, "text": "In this way, through the awareness, positioning, and strengthening of the Marimekko message with its differentiating aspects, we can see that it will support our long-term scaling efforts in a much wider area."}]}, {"speakerId": "S1", "sentences": [{"start": 1712, "end": 1718, "text": "Marimekko is currently in its scale strategy period, where one of the objectives is, of course, international expansion.\n\n"}, {"start": 1719, "end": 1723, "text": "We are now at the halfway point."}, {"start": 1724, "end": 1732, "text": "So, are you happy with how things are progressing, or are there any planned adjustments for the upcoming years?\n\n"}, {"start": 1732, "end": 1741, "text": "And as a final question, is it possible to mention some of the five key success factors in the strategy?"}, {"start": 1741, "end": 1747, "text": "Are some of those more critical to Marimekko than the others, perhaps, for example?"}]}, {"speakerId": "S2", "sentences": [{"start": 1747, "end": 1753, "text": "So first of all, we're very happy about how we have been progressing in our scale strategy term."}, {"start": 1753, "end": 1757, "text": "That is from 2023 to 2027.\n\n"}, {"start": 1757, "end": 1771, "text": "And even despite the volatility happening in the world and in the macro economy, we have been successfully and continuously able to positively develop and grow our business and the brand phenomenon."}, {"start": 1771, "end": 1778, "text": "For example, in the first nine months of this year, we grew our international sales by 8%.\n\n"}, {"start": 1778, "end": 1788, "text": "So I'm very happy with that development, and we're very eager, excited, and committed to continue our determined efforts and investments to scale up our growth.\n\n"}, {"start": 1788, "end": 1797, "text": "And then to the follow-up question with regards to whether some of the key strategic success factors in the scale strategy are more important than others."}, {"start": 1798, "end": 1805, "text": "Actually, these five key strategic success factors include sustainability, creative vision, and accelerating growth, especially in Asia."}, {"start": 1805, "end": 1810, "text": "The love for Marimekko life and the end-to-end digitality form one entity."}, {"start": 1811, "end": 1815, "text": "So it's important that we develop and progress in all of them."}, {"start": 1815, "end": 1822, "text": "Then, if I had to name one thing that is typically the most important of all, it is, of course, the brand and the product."}, {"start": 1822, "end": 1828, "text": "So the creative vision to speak to an even wider audience is, in the end, the heart of it all."}, {"start": 1828, "end": 1838, "text": "And then everything else is there to support in making Marimekko more accessible and spreading our Marimekko phenomenon all around the world.\n\n"}]}, {"speakerId": "S1", "sentences": [{"start": 1839, "end": 1840, "text": "Thank you Tiina."}, {"start": 1840, "end": 1841, "text": "Thank you, Elena."}, {"start": 1841, "end": 1850, "text": "Thank you for joining us, and we hope to see you again in February to discuss the full year results from 2025."}]}], "speakers": [{"speakerId": "S1", "name": "Anna Tuominen"}, {"speakerId": "S2", "name": "Tiina Alahuhta-Kasko"}, {"speakerId": "S3", "name": "Elena Anker"}, {"speakerId": "S4", "name": "Unknown 1"}], "id": "6904af20a62bd4dba7a953a6", "createdAt": "2025-10-31T12:44:16.273Z", "updatedAt": "2025-10-31T12:44:16.273Z", "langCode": "en", "transcriptType": "ENHANCED", "amberscriptJobId": null, "speechmaticsJobId": "eny6pvdnjq", "eventId": "66e84eb77112f5ce725350f8"}