Apranga APB

Company event



Performance Results for the 1st half of 2004



The preliminary and unaudited figure for the profit before taxes of Apranga JTC

(joint-stock trading company) for the first half-year of 2004 stands at LTL

1,019,485. The sales of the Apranga store chain, the largest retail seller of

wearing apparel in Lithuania, amounted to LTL 50.059 m, generating an increase

of LTL 9.5 m or 23.5% as compared with the corresponding period of 2003. During

the first six months of the year Apranga JTC opened five new stores and

reorganized one into a sell outlet “Isparduotuve A”. Sales in the Family segment

increased by 19.2%, in the Youth segment –  by 18.4%, in the business segment

“City” –  by 50.6%, and in the Prestige segment – by over 11.8%. During the

first half-year of 2004 sales of the Apranga store chain increased by 9.6% in

Vilnius, by 14.3% in Kaunas, by 29.7% in Klaipeda and almost fourfold in Riga.



The first half-year profit of Apranga reached LTL 1.019 m and was a little lower

than anticipated. Mostly due to distinct seasonal prevalence, intensive

expansion of the sales network and reorganization of some stores, the Company is

planning to acquire the bulk of its forecasted 8 million Litas profit in the

second half of the year. Slightly smaller than forecasted indicators in sales

and profit can also be blamed on an unusually cold spring and summer, which have

a rather significant effect on the performance of the clothing industry.



The plans of Apranga have also been substantially adjusted by achieved

agreements with global clothing leader INDITEX on the opening of ZARA clothing

stores in the Baltic States. Four projects have been cancelled by Apranga to

elude possible inside competition. The Company is currently finishing the

furnishing of ZARA stores in Riga and Tallinn, and the 1.5 month training of 10

new managers in the best stores of ZARA network in London, Madrid and Lisbon is

coming to an end. The opening of the new 1.600 sq.m. ZARA store in Tallinn is

scheduled for 17 August, the 1.500 sq.m. ZARA store in Riga will open to clients

on 20 August, while the 2.400 sq.m. ZARA store in Vilnius will open its doors at

the beginning of November. In the ZARA stores alone, Apranga will recruit almost

150 new employees. On 26 August, the Company will open the first in Eastern

Europe EMPORIO ARMANI franchise store located in Riga. A store of a similar kind

will open doors in Vilnius in February of 2005.  Apart from the abovementioned

stores Apranga is going to realise four more new projects by the end of 2004.





Saulius Bacauskas

Finance and Economics Director

(+370 5) 239 08 43