Newsletters
Turkish fashion retailer Koton said Tuesday that two warehouses in Russia used to store its merchandise were damaged in Ukrainian drone attacks, with losses estimated at ₺102.8 million ($2.2 million), while the company expects no material impact on its business.
The strikes, carried out on July 17, hit two facilities operated by Russia's largest e-commerce platform Wildberries, one of the marketplaces Koton uses for its online business in Russia, the company disclosed.
Initial assessments showed that part of the retailer's inventory was damaged, with losses estimated at 0.4% of its total assets.
Wildberries is continuing to assess the damage and plans to introduce support measures for affected business partners.
Meanwhile, Koton has started insurance assessment and compensation procedures, working with local and regional brokers under its existing policies, the disclosure added.
Russia has been one of Koton's key international markets since the retailer entered the country in 2002. The company still operates there through its local subsidiary, selling products both in stores and online through its own website and third-party marketplaces.
Earlier this year, Koton decided to close its remaining physical stores in Ukraine but said it would continue serving customers there through e-commerce, reflecting a broader shift toward digital channels in higher-risk markets.
According to Koton's latest investor report, the retailer operates 464 stores worldwide, including 273 in Türkiye and 191 across international markets. It also sells through online marketplaces in 56 countries and operates its own e-commerce websites in four markets.
Since 2024, Koton has expanded its presence in the Gulf through a partnership with Dubai-based Apparel Group. Under the agreement, the companies aim to strengthen operations in the UAE, Saudi Arabia and Bahrain while entering Kuwait, Oman and Qatar through new subsidiaries and physical stores, alongside expanding regional e-commerce operations.
Koton reported 2025 revenue of ₺32.9 billion ($832 million), up 31% from a year earlier, while posting a net loss of ₺958.7 million despite a sharp improvement in operating profitability.
Set as preferred source
Set as preferred source
1 min read
1 min read
