Fashion Blog Week 5

The company that was made famous by Jackie Kennedy in the 1960’s Marimekko is a clothes finisher and textile group. The company is well known for its simple lines and bright prints. This company just dropped 44 percent in its second-quarter when it expanded abroad. On Thursday the company stated they would be expanding their showrooms and stores in United States, Sweden, Germany, and South Korea. The Chief Executive Mika Ihamuotila believes with this expansion it will develop Marimekko’s business and that the company is focusing on developing the product selection and opening new stores. The Marimekko Company has been expanding to avoid bankruptcy in the 1980’s. The company’s clothes and fabrics have been featured in Sex and the City.

http://www.reuters.com/article/idUSLDE67B0JO20100812

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UPDATE 1-Finnish fashion house Marimekko expands abroad

* Q2 EBIT 0.588 mln eur, vs Reuters poll avg 1.18 mln eur

* Q2 sales 15.7 mln eur, vs Reuters poll avg 16.2 mln eur

* Shares down 3.2 pct

(Adds details on international expansion, shares)

HELSINKI, Aug 12 (Reuters) - Finnish clothing and textiles group Marimekko (MMO1V.HE), made famous by Jackie Kennedy in the 1960s, reported a 44 percent drop in second-quarter operating profit as it invested to expand abroad.

The company known for its bright prints and simple lines said on Thursday it would open new showrooms and stores in the United States, Sweden, Germany and South Korea this year to build on a wider economic recovery for future growth.

"I have great confidence in the development of Marimekko's business," Chief Executive Mika Ihamuotila said in a statement.

"Our focus will be on developing the product selection and opening new stores and distribution channels in the United States, northern Europe and east Asia."

Shares in Marimekko fell 3.2 percent to 11.05 euros by 0902 GMT, underperforming a flat wider Finnish market .OMXHPI, after the company's operating profit of 0.6 million euros ($0.8 million) missed all estimates in a Reuters poll. [ID:nLDE6731AC]

Sales in the April-June quarter fell 1.6 percent to 15.7 million euros, also missing all the poll estimates.

Marimekko has been expanding since narrowly avoiding bankruptcy in the 1980s. Its clothes and fabrics have since featured in the hit U.S. television series Sex and the City.

The company stuck to its guidance for roughly flat 2010 sales and operating profit. ($1=.7759 Euro) (Reporting by Georgina Prodhan; Editing by Jon Loades-Carter)