Nov. 1 (Bloomberg) -- Baltika AS, the third-biggest listed Baltic clothing company, rose the most in eight months after sales grew in October for the first time since July.
The stock rose 8 percent to a four-week high of 0.635 euro in Estonia’s capital, Tallinn, where the retailer is based. Volume of 40,617 shares was more than double the three-month daily average, according to data compiled by Bloomberg.
Sales at Baltika’s 121 stores in the three Baltic countries, Ukraine and Russia increased 6 percent in October from a year earlier to 5.48 million euros ($7.4 million), the company said today in a statement. The shares fell more than 15 percent over the previous month after Baltika cut this year’s profit target by half, citing slower third-quarter sales.
The fashion retailer has faced “intensified competition” in recent months as chains including Sweden’s H&M and Lithuania’s Apranga expand in the Baltic region, Swedbank analyst Maart Kroodo said in a report last month. Warmer weather in the region probably also delayed purchases of items in Baltika’s fall collection, he said.
Swedbank on Oct. 3 lowered its price target for Baltika to 0.55 euro, from 0.642 euro on Sept. 5, and kept its sell recommendation for the stock.
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