Ermes first half sales break through EUR 100 mln

Ermes Department Stores (ERME.CY) announced that turnover of the Group for the first six months of 2008 amounted to EUR101,4 mln, showing an increase of 26,8%. The operation of a number of new stores has contributed significantly to the increase of turnover. The net profits allocated to shareholders reached EUR 3.710.000, from EUR 3.521.000 in 2007, an increase of 5,4%.
The Board of Directors considers these results satisfactory, considering that they have been achieved in a negative general economic climate. This climate may continue during the second half of the year. Turnover is affected by seasonality. Turnover, and consequently, profitability, in the second half of the year are normally higher than the first.
The results have been affected by the fact that the commencement of operation of several new stores, as expected at the initial stages, has brought about significant increase of operating expenses and depreciation. Depreciation, which is not a cash outflow, amounted to EUR 3.388.000, from EUR 2.100.000 in the first six months of 2007.