Apranga says its ready for competition

  • 2005-06-01
  • Baltic News Service
VILNIUS - Analysts said that the incredible rise in the share price of Apranga, a chain of apparel stores, is likely to slow in the future as increasing competition enters the retail market.

The Verslo Zinios daily reported that Poland's Vistula and Germany's Peek & Cloppenburg are about to enter the market, while the Nordic fashion giant H&M and Finland's Stockmann may arrive sometime next year.

"With competition in the market intensifying, I do not see any great prospects for the stock. I think that one should refrain from buying the shares in Apranga at their current price of around 21 litas (6 euros)," said Arvydas Skanas, a broker at Jusu Tarpininkas.

Apranga stock has soared 110 percent over the past year, leaving many investors skeptical that it can repeat the performance in the next 12 months.

CEO Rimantas Perveneckas said that even strong international chains would find it hard to compete with Apranga, which in Lithuania has a large, well-developed retail network, strong brands and experience.

Perveneckas said Apranga was targeting 46 percent sales growth this year after posting 40 percent growth in 2004. He said he saw nothing that could prevent the company from achieving this goal.

Apranga is also doing well in the Latvian market, he added, where it expects to become a leading garment retailer this year.