Jumbo Q1 net down 5.2% in Greece, new stores in Cyprus, Bulgaria

Jumbo, Greece's largest toy retailer, said that net profit for the quarter to end-September fell 5.2%, hit by tax hikes and lower consumption as Greeks felt the effects of economic austerity.
Jumbo said net profit fell to 16.6 mln euros from 17.5 mln euros in the same period last year.
Greece cut wages and pensions and raised the VAT rate twice this year to help reduce its budget deficit and meet the fiscal targets set in a 110 bln euro EU/IMF bailout plan aimed at pulling the country out of a huge debt crisis.
Jumbo said its decision not to roll out the VAT rise to retail prices at its 48 stores in Greece, Cyprus and Bulgaria hurt its profitability.
Sales were almost flat at 116.5 mln euros. A strong performance in Cyprus and Bulgaria offset poor business at home and the impact of a truckers' strike in September, which disrupted supplies.
Jumbo has opened three stores since July and plans to add another three in Cyprus, Bulgaria and Greece by the end of the year.
The retailer said the six new outlets would help it meet its target for a 2% rise in sales for the fiscal year to June 2011.
Its shares have lost 40% since the start of the year, worse than a 32% loss for the Athens Stock Exchange in the same period.