Marimekko has surprised investors with strong quarterly growth, especially due to wholesale sales in Finland. Finland grew faster than other countries, although this development was seen as a one-off by CEO Alahuhta-Kasko. Internationally, growth was 6%, which is a decent performance in a weak market. In the Asia-Pacific region, revenue increased by 22%, although the performance in Scandinavia and Europe was weaker.
The company aims for approximately 15% annual growth in the long term while maintaining strong profitability. International expansion plays a key role, with new Marimekko stores opening around the world. However, the number of stores decreased in the first quarter compared to the end of the year, possibly due to seasonal variations.
The domestic market situation remains challenging, and the economic outlook in Finland is still weak, impacting the company’s growth targets. The management sees improving the operating environment in Finland as crucial for Marimekko to achieve its desired growth.
However… the stock price has risen significantly. Isn’t the stock becoming too expensive? 