INTERVIEW-NG2 sees better fit for cheap shoes in rough times

                                
 * Sees double-digit net profit growth in 2009
                                
 * Expects sales up a third to 1 bln zlotys ($338.1 million)
                                
 * Considering bond issue to fund expansion
                                
 
                                
 By Piotr Bujnicki
                                
 WARSAW, Jan 8 (Reuters) - Top Polish shoe retailer, NG2
<CCCC.WA>, sees the economic slowdown as an opportunity to sell
more low-price shoes, helping it to post double-digit earnings
growth this year, its finance chief said on Thursday.
                                
 NG2, which sells one out of every 10 pairs of shoes in
Poland, targets less affluent customers in the European Union's
largest ex-communist economy and neighbouring Czech Republic.
                                
 "The economic slowdown seen by analysts won't negatively
affect our results," Chief Financial Officer Piotr Nowjalis said
in an interview.
                                
 "What's more, we're certain it's a great chance for us.
Consumer habits will change as they adapt to lower incomes, with
clients seeking cheaper products."
                                
 Nowjalis expects 2009 sales to rise by about one-third to 1
billion zlotys ($338.1 million), helping NG2 to post
double-digit earnings growth.
                                
 Analysts have predicted that the group, which produces most
of the shoes it sells, doubled its net profit in 2008 to 100
million zlotys on sales of 760 million.
                                
 Polish government sees 2009 economic growth slowing to 3.7
percent from some 5 percent last year, but many analysts fear a
more significant slowdown as most of Poland's main trade
partners face recession.
                                
 NG2 shares have weathered the storm so far, losing only
one-fifth of their value last year as Warsaw's mWIG40 midcap
index <.MWIG40> shed some 60 percent. Smaller Polish shoe
retailer Gino Rossi <GINO.WA> lost nearly three-quarters of its
value.
                                
 NG2, which has a market capitalisation of $500 million, has
no plans to halt investments and plans to add 131 stores to its
existing 560 outlets in Poland and the Czech Republic.
                                
 "Until now the company has been financing investments from
its own resources. In the upcoming years we intend to use debt,"
Nowjalis said.
                                
 The company is considering issuing bonds worth up to 100
million zlotys, he said.
 (writing by Adrian Krajewski; editing by Chris Borowski)