Apranga continues to expand its retail empire despite declining sales. Photo by Nathan Greenhalgh.

VILNIUS — Retail giant Apranga, a major player in the clothing retail industry in the Baltics, yesterday reported a 21.8 percent drop in net sales this year in their half-year report.

The family fashion segment of retail products saw the biggest slump with a 36.5 percent decrease in retail turnover including value-added tax.

It was followed by the Zara and luxury retail areas with 30 and 24.2 percent decreases in turnover respectively.

“The drop in sales reflects the general situation in Baltic States, where, according to Eurostat, the decrease of retail trade was the biggest among all EU countries,” the report dated Aug. 31 states.

“The group’s revenue has decreased more than gross retail turnover because of increase of VAT in Latvia and Lithuania since the beginning of 2009, and which was not in full passed onto shoulders of consumers due to complicated retail market situation,” it said.

Latvia was the worst-hit country our of the three bringing in 28 percent less sales, followed by Lithuania and Estonia with 17.7 and 11.6 percent declines.

The youth fashion and outlet segments of the retail empire increased in retail turnover, but this was attributed to a 60 percent increase in stores carrying these products — the company opened 21 stores and closed only four during the first half of 2009.

In spite of the region’s economic woes Apranga has been aggressive in its growth plans, expanding its retail outlets 34.1 percent to 118 outlets mostly in Lithuania.

While shoppers have had a good time enjoying continuous sales and discounts this year, the group has noted a marked downturn in profitability.

“The Group’s stores are further strongly pressed by the market situation to sell garments with bigger discounts than usual, what resulted in first half gross profitability shrank from 43.5 percent in 2008 to 38.7 percent in 2009,” the report stated.

The retail group’s brands include S.Oliver, Miss Sixty, Energie, Emporio Armania, Boss, Ermenegildo Zegna, La Perla, Mados Linija, MaxMara, City, Zara, Aprange, Stradivarius, Aprangos Galerija, Pull and Bear, Moskito, Mango and Mexx.