Estonia's Silvano Fashion Group sees 54.6% fall in sales in Ukraine in 2015

AS Silvano Fashion Group (SFG, Tallinn), engaged in sewing and selling lingerie under the Milavitsa, Alisee, Lauma and Laumelle brands, saw a 54.6% fall in sales in Ukraine in 2015, to EUR 1.98 million.

"Ukraine economic data for 2015 is the worst – GDP declined 13%, inflation rate - 43.3%, nominal growth of retail sales (without adjustment for inflation) is only 9%, this means decline in real terms more than 35%. No surprise that group sales there dropped there by more than 50%," the company said in a report on the Warsaw Stock Exchange (WSE).

SFG said that as business climate remains complicated in Ukraine the group is working towards establishing more productive relationships with partners there urging them to develop group brands by offering required support in operational activities.

The share of the Ukrainian market of group's total revenue fell to 3% from 4.3% in 2014 and 7% in 2013.

In H1 2015 the decline year-over-year reached 71.5%, and the Ukraine's share fell to 2.2%.

According to the report, last year the fall in the number of franshise stores stopped: as of early 2014 their number was 101, in H1 2014 – 97, in 2014 – 91, in H1 2015 – 92 and in 2015 – 93.