Anthoussa, November 17, 2011

DROP IN SRPIDER STORES' RESULTS IN 9M 2011 DUE TO ONGOING RECESSION

SIGNIFICANT DECREASE IN OPERATING EXPENSES

SPRIDER STORES Group of companies released its nine-month of 2011 consolidated financial results according to the International Financial Reporting Standards.

Amid the ongoing recession and debt crisis as well as the adverse conditions prevailing in the retail market, consolidated group sales marked a 19.0% decrease versus 9M 2010 and amounted € 85,230 thou. compared to € 105,248 thou. in 9M 2010. As was mentioned above the drop in activity is due to the systemic consequences of the current international debt crisis and the ongoing recession in the Euro zone, which has affected all sectors of economy and even more the retail trade and apparel sector, which due to the intense decrease in consumers' purchasing power is showing signs of precipitation.

Consequently, group gross profit amounted € 45,454 thou versus € 58,734 thou in the corresponding nine months of 2010, marking a 22.6% decrease, reflecting the drop of sales. Moreover, gross margin dropped by 2.5 percentage points and formed at 53.3% of the consolidated turnover versus 55.8% in the corresponding nine months of 2010. The reduction in gross profit and the contraction of gross margin is attributed to the aforementioned decrease in sales, the absorption by SPRIDER STORES of the two consecutive VAT increases, which took place during FY 2010 as well as to the increase of the raw materials' prices (cotton).

Accordingly, Group EBITDA formed at losses of € 3,123 thou over earnings of € 4.993 thou in the corresponding nine months of 2010. It should be noted however that during the same period, total Group operating expenses net of depreciation marked down by 13.4% and amounted € 48.651 thou versus € 56.148 thou. in the corresponding nine months of 2010, due to the continuing efforts to constrain and streamline operating cost. Under this perspective, it is worth noting the significant decrease of operational losses (EBIDTA), observed during the third quarter of the current year as compared to Q3 2010, which formed at € 2,350 thou. versus losses of € 3.799 thou. during Q3 2010, reduced by 38.1%.

Consolidated EBIT amounted to losses of € 12,113 thou versus losses of € 3,421 thou. in the corresponding nine months of 2010, increased by 254.1%. During the same period of 2011 Group depreciation increased and amounted € 8,990 thou versus € 8,414 thou as at 30/09/2010 as a result of the implementation of the group's expansion plan during the past year.

Group results before taxes (EBT) formed at losses of € 15,349 thou versus losses of € 6,696 thou in the corresponding nine months of 2010, marking an increase of 129.2%. The increase in financial expenses has contributed to that end, which for the nine months ended September 30, 2011 reached € 2,548 thou versus € 1,687 thou for the nine months ended September 30, 2010 reflecting the constantly increasing cost of debt in the domestic market. It should be stressed that Group debt during the examined period remained unchanged.

Finally, group after tax and minorities results (EATAM) amounted to losses of € 15,303 thou versus losses of € 6,014 thou in the corresponding nine months of 2010, increased by 154.5%.  

SPRIDER STORES management makes every possible effort in order to alleviate the consequences of the current extremely adverse situation in the domestic market as well as in the South East European markets where the Group operates. The Group's actions emphasize on sales network rationalization, continuous improvement in operational cost and liquidity enhancement.

Specifically, as far as it concerns the sales network rationalization, during the nine-month period ended September 30, 2011 the Group opened two (2) new points of sale and also proceeded to the cease of operations of four (4) other stores. In total, the Group today operates a substantial network of one hundred and eleven (111) points of sales, of which eighty five (85) are located in Greece while twenty six (26) are located in Romania, Bulgaria and Cyprus.

 CONSOLIDATED INCOME STATEMENT OF THE NINE MONTHS OF 2011

NA: not applicable

 Note:

The Nine-month period ended September 30, 2011 “Financial Data and Information” of SPRIDER STORES S.A. will be published on Thursday, November 17, 2011.