Home / Knowledge / News / Fashion / Fashion retailer Baltika Q3 sales shrink 2%
Fashion retailer Baltika Q3 sales shrink 2%
11
Nov '13
A strong half-year was followed by decreased sales in third quarter 2013 and brought a net loss of 784 thousand euros. Nine months ended with a net loss of 763 thousand euros, a weakening of 493 thousand euros year-over-year.

The main factor that undermined third quarter performance was the situation in the retail segment. Unusual warm weather in August and September dampened demand for autumn goods in all of Baltika’s five retail markets.

In addition, consumer behaviour was affected by increasing uncertainty and slackening economic growth, particularly in Russia, but to a lesser extent also in the Baltics. Competition intensity in Estonia and Lithuania has grown due to new brands entered the market and retail sales area has widened.

In the first half-year, the Group’s retail sales grew by 8%, in the third quarter there was 2% shrinkage, which lowered nine-month retail sales growth to 5%. In the third quarter, moderate retail sales growth was achieved in the Baltics (2%), where the growth driver was Estonia (5%). In nine-month terms, the strongest retail sales growth was recorded in Estonia (14%), followed by Latvia (8%) and Lithuania (4%).

In the third-quarter retail sales in Russia fell by 14% and in Ukraine by 6%. Addition to slackening economic growth, sales were driven down by the weakening of the exchange rates of the Russian rouble against euro. The Group’s nine-month foreign exchange loss amounted to 372 thousand euros.

Wholesale and e-commerce revenues grew by 20% in third quarter which meets the expectations set for 2013 to develop also other sale channels and increase sales volumes through wholesale partners and franchise.

Compared with the third quarter last year, the Group’s total revenue decreased by 135 thousand euros, i.e. 1%. Gross margin for the third quarter was 48.9%, a decrease of 2.9 percentage points year-over-year. The slide in the margin is attributable to consumers’ unseasonably weak demand for autumn-winter goods due what the proportion of new season garments sale from total sales was smaller than in last year.

Although after two weak months, sales resumed growth in October, the figures did not fully meet management’s expectations. Weaker than expected results at the beginning of the fourth quarter may put achievement of the company’s financial targets for 2013, which were released on 1 October, at risk. The current year’s fluctuating sales figures along with the uncertainties prevailing in the economy make it difficult to make forecasts for the near future.

Baltika Group


Must ReadView All

Pic: EIN Presswire

Apparel/Garments | On 19th Apr 2021

EC funds campaign on disastrous impact of fast fashion

With clothes consumption increasing by 60 per cent in only 15 years,...

Pic: Target Corporation

Retail | On 19th Apr 2021

Target Corp to spend over $2 bn with Black-owned businesses by 2025

As part of its commitment to social justice and racial equity, Target ...

Pic: PR Newswire

Textiles | On 19th Apr 2021

Japanese firm Epson launches textile printer for customised clothing

Epson has launched the industrial-level SureColor F10070H...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Estimate loss of $8-$10 billion in turnover

Textile Industry, Head honchos

Textile Industry
Head honchos

Tech in fashion industry has hit acceleration button

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Nantas Montonati,

Nantas Montonati

The Riri Group is a one-stop supplier of metal accessories for the luxury...

Kurt Wedgwood,

Kurt Wedgwood

From design to raw material to fabrication and ultimately to delivery -...

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search