Halandri, November 22, 2012

Press Release

9M 2012 CONSOLIDATED FINANCIAL RESULTS ACCORDING TO IFRS

ü  DECREASE OF FIGURES FOR SPRIDER STORES IN THE NINE MONTH PERIOD OF 2012

ü  SIGNIFICANT DECREASE OF OPERATING EXPENSES

SPRIDER STORES Group of companies released its 9M 2012 consolidated financial results according to the International Financial Reporting Standards.

The ongoing decline of consumption due to the continuing recession of the Greek economy, the debt crisis and the uncertainty that prevails in Greece, were the main characteristics of the whole nine month period of 2012. It is mentioned indicatively that during the first eight months of the year, according to the latest data published by the Hellenic Statistical Authority, apparel retail sales in Greece dropped by 21.3%. 

Moreover, in charge of the situation described above, early in the morning on Monday, February 13, 2012 an unfavorable event took place, when the Company's headquarters in Anthousa, Attica, admitted arson attack by unidentified individuals, resulting to the complete destruction of both the headquarters and the warehouse, something that significantly affected the company's activities during the following months. The inventories and the equipment that were in the warehouse and offices of the Company were insured pursuant to SPRIDER STORES standard insurance coverage, while during this period there is cooperation with the involved insurance companies to certify the amount of losses and proceed to the payment of the relevant compensations as soon as possible.

The amount of losses due to the fire, as derived by the company's books shaped at € 12.180 thou, with possible total compensation amounting € 9.969 thou, as it is depicted in the relevant insurance contracts. However, it must be stressed, as it is provided by the Law, since up to the publication date of 9M 2012 financial statements, the Fire Department in authority has not issued an official opinion, therefore the company and the group, as provided by the law, have not formed provisions for collecting compensation from insurance companies.

As a consequence of the above, consolidated sales for the nine month period of 2012 reduced by 29.4% and amounted € 60,207 thou over € 85,230 thou in the respective period last year. As mentioned above, this decrease is due to the effects of the growing recession in Greece that has affected all sectors of the economy and particularly the retail and apparel industry and footwear that has been precipitated due to the rapid decline of the consumers' purchasing power.

As a result, group gross profit in 9M 2012 amounted € 27,557 thou versus € 45,454 thou in the nine month period of 2011, reduced by 39.4%, reflecting the decrease in sales. Gross margin dropped by 7.5 percentage points to 45.8% versus 53.3% in the respective period last year. The reduction of gross profit as well as the gross profit margin was due, apart from the above mentioned drop in sales, to the burden by the continuous offers of the company in order to attract the consumers.

Respectively, group EBITDA formed at losses of € 20,083 thou versus losses of € 3.123 thou in the nine month period of 2011. It must be noted that Group EBITDA are burdened with the amount of € 8.198 thou, concerning losses from destroyed inventory due to the fire of February 13^th, which were depicted in the account “Other Expenses” and as it was mentioned above the company did not form the same amount of provisions for collecting the relevant insurance compensation.

Please note that Group operating expenses before depreciation in the nine month period of 2012, reached € 37,394 thou over € 48,651 thou in 9M 2011, reduced by 23.1%, as a result of the continuous efforts to streamline and rationalize operating costs and Group's sales network.

Consolidated EBIT for the nine month period of 2011 amounted to losses of € 26,771 thou over losses of € 12,113 thou in the respective period of 2011. Depreciation expense during 9M 2012 shaped at € 6,689 thou over € 8,990 thou in 9M 2011, mainly due to the reduced investments realized by the Group during the last two years.

Group results before taxes (EBT) formed at losses € 33,897 thou versus losses of € 15,349 thou in 9M 2011. It must be noted that Group EBT are burdened with the amount of € 3,982 thou, regarding losses from destroyed fixed assets due to the fire of February 13^th, which were depicted in the homonymous account and as it was mentioned above the company did not form the same amount of provisions for collecting the relevant insurance compensation.

Finally, group results after tax and minorities (EATAM) in 9M 2012 amounted to losses of € 33,611 thou over losses of € 15,303 thou in the respective period in 2011.

The Group's management follows developments closely and continues the execution of its strategic plan in 2012 as well, while at the same time monitors the volatile conditions of both the Greek market and the regional markets where the Group operates in the SE Europe, in order to promptly adjust its strategy whenever deemed necessary. The strategic priorities for 2012 continue to comprise of the rationalization of the sales network, the increase of market share, the constrain of operational expenses as well as the fortification of the operational cash flow. In concluding the collection of the compensation for destroyed inventories and fixed assets due to the fire of February 13^th, 2012, it is considered of vital importance, in order for the company to continue smoothly its operations.

CONSOLIDATED INCOME STATEMENT 9M 2012

NA = not applicable

Note:

The 9M 2012 “Financial Data and Information” of SPRIDER STORES S.A. will be published on Thursday, November 22, 2012.          

SPRIDER STORES is the largest Greek multinational value fashion and house ware retail chain, offering complete apparel solutions for the entire family, always under the optimum price – fashion – quality ratio, through an extensive sales network, of eighty-four (84) stores, of which seventy-nine (79) stores are strategically located in key cities across Greece and five (5) stores in major cities of southern and eastern Europe and especially in Bulgaria.