HDFS agreement with Bijoux Terner

Hellenic Duty Free Shops (HDFS) said yesterday it agreed with US accessories retailer Bijoux Terner to sell its products in Greece. HDFS said it already operates a Bijoux Terner store at Athens International Airport and plans to have seven more points of sale at other airports, ports and border stations by August. The retailer has exclusive rights to operate duty-free and other retail stores in airports, ports and border stations throughout Greece until 2048. It expects annual revenues of 6 to 6.5 million euros from the sale of Bijoux Terner accessories. An official at HDFS said the figure was included in the full-year guidance the company has released. HDFS, in which Folli Follie recently doubled its stake to just over 49 percent, has forecast net profit of 44-45 million euros on sales of 290 to 300 million this year. Shares in HDFS gained 3.64 percent by midsession yesterday, outperforming the broader Greek market. «The deal with Bijoux Terner will partly offset the loss of revenues from the revocation of HDFS’s special fuel concession,» Spyros Tsangalakis, an analyst at HSBC, said. In April, the Greek government revoked a license that allowed the company to sell tax-free fuel at five border stations in northern Greece, citing the risk of fuel smuggling. HDFS challenged the decision in court but no ruling has been issued yet. HDFS trades at 14.4 times its 2006 estimated earnings, a discount to the 20.8 multiple of Dufry, according to Reuters Estimates.