Home / Knowledge / News / Apparel/Garments / Slowdown hurts fashion retailing - LOJAS RENNER
Slowdown hurts fashion retailing - LOJAS RENNER
02
Nov '11
LOJAS RENNER S.A., the second largest apparel department store in Brazil, announces its third quarter (3Q11) and first nine months results for 2011 (9M11).

MANAGEMENT COMMENTS
The third quarter was marked by a change to a less favorable macroeconomic scenario in Brazil and also associated with inclement meteorological conditions, making the business climate an even more challenging one for fashion retailing.

The evolution in Renner's Same Store Sales at 3.8% for the quarter and 8.1% in the first nine months is a clear indication of the deceleration in activity during the period, the level of confidence of consumers being particularly affected by the daily newscasts on foreign exchange rate volatility, inflation rates and crises in the European and American economies.

Persistently low temperatures in the South and the Southeast regions during the month of August negatively affected consumer disposition to shop, principally given that the stores were already carrying the spring collection. Notwithstanding this trading environment, those new stores recently incorporated into the network – and thus not included in Same Store Sales figures – contributed to the Company sales increase of 15.5% in the quarter and 17.4% in the first nine months of the year, confirming the importance and success of the expansion plan.

Notwithstanding the cost pressures from higher cotton prices, which continued to impact the Company's overall costs in 3Q11, together with the effects of the consolidation of the Camicado business, Gross Margin from the Retail Operation was 50.2%, virtually at the same level of 50.3% reported for 3Q10.

In 9M11, Gross Margin was 52.4%, also in line with this item for the 9M10 period. At Lojas Renner, the larger volume of imported items and the low temperatures recorded for July and August were both instrumental in reducing the need for markdowns and contributed favorably to the result for the quarter's Gross Margin, which continued to expand from 50.3% to 50.5% in the 3Q11.

Results from Financial Services totaled R$ 34.0 million in the quarter, the accumulated result for the first nine months being R$ 104.6 million. Despite the changes in the macroeconomic scenario, delinquency remained low, representing 2.7% of Net Revenue from Merchandise Sales. The Renner Card accounted for 55.3% of sales turnover in 3Q11 and 54.9% in 9M11.

During the course of 3Q11, the new store roll-out program continued a pace in line with plans for the year. In the first nine months, 12 new stores were opened, 10 of which Lojas Renner compact and traditional models and 2 Blue Steel, in total adding15.7 thousand m2 to the Company's sales area.

By the end of the year, a further 20 inaugurations of Lojas Renner stores are scheduled to take place together with one more Blue Steel, which will compound the 3 units as prototypes for testing the potential for a specialized network under that store banner.

The process of consolidation and integration of Camicado continues in line with the initial plans and Management remains confident as to the opportunities presented by this new operation. A further three stores are to be opened before the year-end.

Click here to read more details

Lojas Renner S A


Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search