Hello everyone. Marimekko reported its Q3 figures this morning. As usual, we have the company's CEO Tiina Alahuhta in an interview. Hi Tiina! Hi! Let's start in the traditional style. If you summarize the events of Q3 from your perspective.

Q3 went well overall, meaning our net sales and EBIT increased, and this was truly driven by the excellent performance of our international net sales across all market areas, with international net sales growing by 16% in total.

Yeah, looking a bit closer at sales development in Finland. Now net sales decreased, and retail sales also continued to decline, just like in Q2. And back in the spring or summer when reporting Q2, you commented a bit more on temporary factors, campaigns, and weather. And well, is it? Is this decline in Finnish retail sales now? Does it look somewhat more permanent now that it continued into Q3?

Well, actually we've been talking for a while about how the operating environment in this domestic market has been challenging for quite some time, and now we see what is great: the economy in Finland has returned to growth, but it doesn't yet show broadly for all consumers as there are other factors weighing down consumer confidence, such as inflationary pressures, fears of unemployment, rising interest rates, and so on. But, but. Of course, we hope that gradually this economic growth in Finland will also begin to show positively in consumer confidence and purchasing behavior within our premium segment where Marimekko operates.

Right. How do you see your market share? Now that your sales have decreased for half a year, the past couple of quarters, have you lost market shares somewhere, or does this reflect the development of your segments? I don't know how precise market data even exists for that, but what is your view on it?

Well, on the domestic market. Well, now in the third quarter of the year, our retail sales decreased by 4 percent, so it decreased less than in the previous quarter. So overall, we have the same tools for net sales and sales development as usual. Meaning we strongly believe in it. Our investments in the appeal of our brand and products, and now in and reflecting the general domestic economic situation, we have also set out to further develop our collections so that we have products at an even wider range of price points within the lifestyle selection we offer, thereby serving our customers even better in such a price-sensitive operating environment.

Yeah, exactly. You referred in the report that you aim to move slightly towards lower price points, so how does this? How does this? Is this already taking place? Is this already implemented, or on what timeline and to what extent will it show for you?

Indeed, we have already started doing this work, as normal collection work typically takes longer in our industry. But due to Marimekko having such a modular collection structure, it enables us to make updates or revisions even faster if necessary. And overall, looking at the longer term, Marimekko's lifestyle selection with products across a wide variety of price points has already proven to be our strength. Now it is a question of how we can further utilize our broad lifestyle concept featuring these different price points. Also in such a market environment where we always operate without compromising on quality.

Right, right. Will these be visible to the consumer already this year or only next year, or how?

Well, we are currently working on these matters as well.

Domestic wholesale decreased quite clearly now. And as you commented that these campaign deliveries are weighted towards Q4 this year, which affects it. But is there sort of, does it affect it? When looking at wholesale cleaned of campaigns, is there a negative trend there on the retail side as well?

Well, we have stated that now in 2026 we estimate these one-off domestic wholesale campaign deliveries to increase from the previous year. And we have also reported that during the first 9 months, these one-off campaign deliveries, or their sales, have increased. However, domestic wholesale has decreased by 5 percent. So this market environment has continued to be price-sensitive and campaign-driven this year.

Exactly. Moving then to the brighter side, meaning international sales, there were very, very good growth percentages across the board. Now in Q3, certainly. Also when looking at the whole nine months. But were there some timing issues in Q3? Meaning. In Q1, growth was perhaps a bit subdued at times in wholesale, and now it is really good. So, should we look more at the 9 months than Q3, or how? How would you see it?

I would say that the most important factor in our excellent performance in international sales is precisely the desirability of our brand. And these are the results of long-term brand work in international markets. Nevertheless, in a highly competitive international fashion and design business and a rather challenging market environment there as well. I am truly proud of these results. And overall, we estimate that our international net sales will grow in 2006.

Right. Right. Exactly. Now how about this, since there is a clear geographic shift. Why the change here? As Finland comes down and international sales grow, does it have an impact on your margin profile, profitability? Has it shown in that in any way?

Well, our. As for our profitability, now in Q3 our comparable EBIT grew by 3 percent, and it was 20. Or the comparable EBIT margin was 25 percent of net sales, so at a quite strong level. And it was specifically supported by net sales growth, but also by the improvement of the relative gross margin, which was particularly driven by good product margins.

So geography doesn't perhaps have a huge impact, at least in this quarter.

Let's highlight the most important factors when we talk about our earnings drivers.

Exactly. Good. Now you raised the estimate for new stores for this year in the market outlook, how many new stores will be opened. And they are weighted towards Asia, as usual. And well. Could you tell a bit about how the new markets have started there and what drove this revision of the estimate at this stage.

Well, raising the estimate is purely due to our estimate having increased for the end of the year, meaning for the full-year level. So it is completely normal that our plans are refined during the year. And this is now the updated outlook, which is of course really great.

And now speaking of new market entries, this year they are Indonesia and the Philippines. We have now been in these markets for a couple of months, so we are still at an early stage. Two shop-in-shops have now been opened in Indonesia, and then again these other openings. In these market areas, there have been smaller shop-in-shops that are under 30 square meters. So they are not even reported in our new store count figures. But we have celebrated the launch of Marimekko in these markets in a very visible way, and among other things, a fashion show was organized in Jakarta at the end of September, and it is good to continue forward from here with our partners.

Have these new markets specifically enabled us to open stores faster or in greater numbers than you thought? Perhaps at the beginning of the year, or where did that revision come from?

When we operate in partner markets, we always make all business plans and store opening plans together with these partners, of course. But what is typical for our industry is also that since the best retail spaces are highly competitive, these estimates are then always refined during the year. But we are really happy that we have launched in these markets, and it is great to further strengthen our presence and also this Southeast Asia ecosystem. As Asia nevertheless plays a very important role in our growth strategy.

Yes, indeed. Well then, finally, turning to the guidance, you kept the familiar guidance unchanged once again as expected. But can you comment on it? What are the most important variables for the rest of the year? And perhaps regarding the upper end of the margin range, how could one still reach it?

Yes, indeed we reiterated our financial guidance today, which states that we estimate Marimekko's net sales to grow and our comparable EBIT margin to be estimated at around 16–19%. Q4 is indeed important in terms of sales. For Marimekko, we talk about Christmas sales and so on. And now it is good to remember that the operating environment is volatile, and the development of consumer confidence and purchasing behavior naturally has an impact on the company. And naturally we hope that this revived economic growth in Finland will indeed begin to gradually show in this consumer confidence and purchasing behavior also in this premium segment where Marimekko operates.

That comes mostly through sales and demand. That sort of uncertainty and volatility in that guidance. Was this the correct interpretation?

Well, as stated, the market environment is volatile, and of course Q4 is important in our industry, and we have wonderful collections. I was just presenting these new Christmas arrivals to you here. So we are off with a cheerful mind to build the Christmas sales.

All right, good luck with the rest of the year, and let's get back to this next year! Thank you very much!