Silvano Fashion Slumps on Sales Slowdown: Tallinn Mover
AS Silvano Fashion Group (SFGAT), the second-largest Baltic clothing company, plunged the most in four months after sales growth slowed in the third quarter.
The shares fell as much as 7.7 percent in Tallinn in intraday trading, the most in 30 months, before closing down 7.1 percent at 3 euros, valuing the company at 118 million euros ($150 million). Volume of 221,399 shares was equivalent to 577 percent of the three-month daily average, according to data compiled by Bloomberg.
Third-quarter revenue increased 6.8 percent to 32.4 million euros from a year earlier after climbing 19 percent in the previous three months, the company said in a regulatory statement late yesterday.
“The drop of sales growth warns about the slowdown of the company’s activity,” Tadas Povilauskas, a Vilnius-based analyst at Finasta, said in a note today.
Net income shrank to 2.8 million euros from 6.9 million euros a year earlier, the company said. That was mainly due to accounting rules for hyperinflation in Belarus, where Silvano makes most of the lingerie that it sells in Russia, Belarus, Ukraine and the Baltic region, it said.
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