The retail chain turnover (including VAT) of the Apranga Group has made LTL
437.4 million (EUR 126.7 million) in 2007, or 46.1% more than in 2006.
In 2007 Apranga Group has implemented the biggest expansion program in
company's history. There were 25 new stores opened, 6 reconstructed, and 7
stores closed during the year. The trading area possessed by Apranga Group has
increased by 15.5 thousand sq. m., or by 40% during 2007. Due to rapid
expansion number of employees of Apranga Group has increased from 1170 to 1637
- by 467 people. Apranga group has invested LTL 38.9 million (EUR 11.3 million)
to expansion of retail chain. Also Apranga Group has twice expanded the area of
central logistic centre in 2007.
In 2007 Apranga Group has surpassed retail merchandise turnover plan by 0.5%
and by 7.6% missed profit before taxes target.
Due to strained conditions in the labour market, high demand for employees for
newly opened stores, and unexpectedly rapid increase of salaries in services
sector, Apranga Group has increased salaries for store personnel on average by
25% in October and November - almost twice more than it was planned.
Because of unusually warm winter and after 2 big stores (3,200 sq. m. City and
600 sq. m. Hugo Boss) opening delay by 3 months seeking to optimise inventory
levels selling of winter season merchandise with discounts has started 3 weeks
earlier.
Above conditions resulted in lower than planned gross margin and operating
expenses exceeded planned amounts.
Apranga Group plans to reach LTL 580 million (EUR 168 million) retail chain
turnover (including VAT) in 2008 and to earn LTL 39.5 million (EUR 11.4
million) consolidated profit before taxes in 2008.
Shares of Apranga are listed on Baltic equity list on Vilnius Stock Exchange.
Majority shareholder of Apranga Group is concern MG Baltic.
Rimantas Perveneckas
Apranga Group General Manager
+370 5 2390801
