Flamingo sees higher turnover, posts losses

IT&C and home appliances retailer Flamingo International posted a 302.2 million-RON (86.6 million-euro) turnover in the first nine months of the year, an 80% increase against the same period of 2005, but recorded 18.4 million-RON (5.2 million euros) in losses. The group’s consolidated report includes the results posted by Flamingo International, as well as its subsidiaries, Flanco, Flamingo Computers and Flamingo Distribution Center. Operational expenses rose quicker than company turnover (94% against 85%) this year, due to non-recurrent costs generated by the integration process and by the more efficient retail activity, say company officials. The drop in sales-related profit, following clearance sales in shops that then closed down, as well as the restructuring of the product portfolio in the whole retail network have impacted upon the group’s business. Flamingo estimates it will recover the losses cumulated in the first nine months of the year in the fourth quarter, the high season for the sales on the IT&C and home appliances market. In the first thee quarters of the year, the retail group closed 39 stores, including 26 Flamingo Computers stores, seven Flanco stores and six Future Shops.