Baltika Slumps on Lowered Profit Forecast: Tallinn MoverBryan Bradley
Baltika AS, the third-biggest listed Baltic clothing company, fell the most in 18 months after cutting this year’s profit target by half.
The stock fell as much as 11 percent to the lowest level since January and closed down 9.6 percent at 0.642 euro in Estonia’s capital Tallinn, where the retailer is based. Volume of 144,738 shares was the most since Aug. 9, 2011, according to data compiled by Bloomberg.
Baltika now sees 2013 net income similar to last year’s on slower third-quarter sales, it said after trading yesterday. The company cut a February forecast that profit would double this year and estimated that sales at its 119 stores in the three Baltic countries, Ukraine and Russia will grow 7 percent this year instead of the previously forecast 10 percent.
“Warmer than usual weather in August and September reduced consumer demand for autumnal garments in all five of Baltika’s retail markets, thus decreasing the commercial margin and gross profit for the group,” the company said.
Sales in September fell 8 percent from the same month last year to 4.7 million euros ($6.4 million), it said.
Apranga AB, a Baltic clothing retailer based in Vilnius, Lithuania, said yesterday its sales grew 6 percent in September from a year earlier to 16.4 million euros and increased at a 10 percent annual pace in January-September. Apranga shares, which fell 0.4 percent yesterday after the report, were unchanged today at 2.55 euros in Vilnius.