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

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Ashok Desai
Bombay Textile Research Association

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search