Baltika Jumps as Retailer’s Sales Resume Growth: Tallinn Mover

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.

    Before it's here, it's on the Bloomberg Terminal.