Baltic, Good for Business, Lithuania, Markets and Companies, Retail

Rimantas Perveneckas said the group will not reach its 2018 annual revenue target of 231 mln euros, including VAT, but projects a 7.8% increase in sales to 242.6 mln euros next year. 

"The forecast is rather ambitious, but possible to achieve, as our companies are planning to carry out renovations and open new stores," he told. 

Apranga earlier this week unveiled plans to renovate or open 35 to 40 stores in 2019, with its net investment expected to be around 12 mln to 15 mln euros.

"In 2019, we will invest a lot in Latvia, with 25 new store openings planned there. Most of the investment will be in stores that will open in Riga's Akropole and Alfa shopping centers," Perveneckas told.

The CEO said the group is set to lose some revenue during store renovations, which are planned to be completed by the end of next summer. 

"We'll incur significant revenue loss while renovating our stores, but we'll reach high, hopefully double-digit growth rates starting next September and will maintain these rates in 2020," he said. 

Apranga currently owns 182 stores in the Baltic countries, including 110 in Lithuania, 43 in Latvia and 29 in Estonia.

The Vilnius-based group's retail sales for January through November edged up by 1.3% y-o-y to 203.6 mln euros, but net profits for the three quarters of this year slumped down by 56 % to 4.279 mln euros. 

Perveneckas said the chain's profitability has been adversely affected by losses due to unusually warm temperatures, adding that the first quarter was this year's worst quarter because of unstable weather conditions.