CEO of Baltika: Estonian fashion is increasingly competing with global brands
“In the Baltic States, competition in the fashion brand market has intensified, as well as online shopping, which means that Estonian fashion brands are competing with the global market. Consequently, a certain loss of market share makes sense. However, the Q3 results of Baltika include indicators confirming the company’s turnaround, such as a significant reduction in marketing and administrative costs and continued growth in e-store sales,” said Mae Leyrer, CEO of Baltika, commenting on the company’s Q3 results.
Baltika announced today in the stock market that the company ended the third quarter with a net loss of EUR 1,242,000. Baltika’s sales revenue for in the third quarter was EUR 9,758 000, a decrease of twelve percent compared to the same period last year. “Sales revenue declined across the Baltics, mainly due to weak September results and the closure of the Bastion brand, which is part of Baltika’s restructuring plan. Excluding the negative impact of the closure of Bastion, sales revenue for August and July remained at the previous year’s level,” commented the CEO of Baltika.
Leyrer said that competition in the fashion world would definitely continue to intensify in the coming years. “Estonian consumers are increasingly using online shopping, which opens up a global choice. In addition, our competitor COS entered the Lithuanian market this fall, and Zara opened the largest store in the Baltics in Lithuania. These are clear signs of continued intensification of competition,” he said.
Leyrer added that Baltika plans to upgrade the look of the e-store in the near future and will create better conditions for making purchases from mobile devices. “We are pleased to note that the sales revenue of Baltika’s online store andmorefashion.com continues to grow, with third-quarter sales growing 33 percent compared to the same period last year. “The brand with the highest percentage of sales revenue is Monton, whose sales accounted for 38 percent of the e-shop revenue. The most remote countries to which purchase orders of Baltika’s brand were shipped in recent months were Turkey, Israel, Japan, Australia, and the US,” said Leyrer.
Baltika’s CEO confirmed that Baltika would continue to implement actions to improve its performance. “Undoubtedly, business plans today need to be flexible because the environment we live in is rapidly changing. This is also the case with Baltika, we monitor the environment and analyze the data, and if we need to refine our strategy, we do,” Leyrer noted.