• Q2 net loss widen to EUR1.1m from EUR200,000 last year 
  • Sales increased 17% to EUR23m
  • Company focused on expanding in Asia

Finnish apparel and homewares company Marimekko saw second quarter net losses widen on redundancy costs relating to the closure of two Finnish manufacturing sites.

The company recorded a net loss of EUR1.1m (US$1.46m) over the quarter ended 30 June, against a EUR200,000 loss in the same period of last year. Operating losses reached EUR1.2m, against an EUR500,000 loss last year. Excluding non-recurring items, the company said it would have recorded an EUR300,000 profit.

Sales increased 17% over the quarter to EUR23m.

"Our net sales continued to grow fairly strongly in spite of challenging market conditions in our main market areas," said president and CEO Mika Ihamuotila.

"The investments we have made in recent years in line with our long-term internationalisation strategy are now beginning to make themselves felt. Net sales in the second quarter this year grew by 17% relative to the same period last year; net sales outside Finland were up by 38%. In 2013, a total of 30 to 35 new Marimekko stores are opening.

He said the company is largely focused on expanding in Asia, where it opened its first stores over the quarter. "I am optimistic about the growth prospects for Asian retail trade and about strengthening the attractiveness of the Marimekko brand in this region. The first Marimekko store in mainland China opened in Beijing during the second quarter, and at the beginning of August our network of stores also expanded to Shanghai."