Food retailer X5 posted a smaller-than-expected rise in third-quarter revenues as fewer customers shopped at its older stores, increasing the chance that it will cut its full-year growth forecast.
In a trading statement Thursday, X5 said third-quarter net retail sales rose 10.4 percent year on year, broadly the same pace as in the previous quarter.
From the start of the year to the end of September, sales rose 8.2 percent to 356 billion rubles ($11 billion), suggesting X5 would have to increase sales by more than 30 percent in the final quarter to achieve 15 percent growth over 2011, when it generated around 454 billion rubles in sales.
"In our view, management will have to officially downgrade its full-year sales growth guidance to a more achievable number than the current 15 percent," said Maria Kolbina, an analyst at VTB Capital.
(Reuters)
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.