The first quarter profitability of the apparel retailers whose financial year
matches calendar year is mostly determined by the only profitable month of
operations - March. Due to cold weather in March and negative tendencies in
retail market (differently from March 2007), and in spite of sales area
increase almost by 1/3, the turnover of Apranga Group has increased just by
8.4%. General profitability was lower by 6.6% due to slack sales of new spring
collections and prolonged discounted sale of winter goods. Unprofitable
operations in 1st quarter, 2008 were also influenced by significant increase of
labour costs, financial expenses and maintenance costs of the shops.
The consolidated interim financial statements for 3 months 2007 of Apranga
Group, as well as managers' confirmation letter are ready for acquaintance (see
attachments). The interim information is also available at
www.apranga.lt/investuotojams.
Vaidas Savukynas
Apranga Group CFO
+370 5 2390843
