Home / Knowledge / News / Apparel/Garments / Sales surge 17.4% at fashion retailer Lojas Renner in Q1
Sales surge 17.4% at fashion retailer Lojas Renner in Q1
09
May '13
LOJAS RENNER S.A., the second largest fashion retailer in Brazil, announces its results for the first quarter 2013 (1Q13).

Except where otherwise indicated, the following results include the operations of Camicado. The information shown as “Lojas Renner” consolidates the results for Lojas Renner S.A. – parent company, Dromegon Participações Ltda. and Renner Administradora de Cartões de Crédito Ltda.

MANAGEMENT COMMENTS

The first quarter of the year was characterized by a good continuing level of sales, benefiting from favorable customer reception to the fallwinter collection and by seasonal temperatures. This combination of factors was instrumental to the Company reporting total consolidated growth of 17.4% in Net Revenue from Merchandise, Same Store Sales reporting an increase of 9.4%.

Gross Margin from the Retailing Operation of 51.2% was impacted principally by the recognition of higher losses on inventory (R$ 12.9 million) related to the transitional process involving migration to the security tags system and the lower margin from the Camicado business. If the inventory effects are discounted, the Renner operation would have shown a Gross Margin improvement of 0.6 p.p.

Despite the large number of stores recently opened and the new Rio de Janeiro Distribution Center, operating expenses reported a slight dilution in relation to Net Revenue. The postponement of the remodeling of some stores together with the Company’s rigid cost control saw operating expenses decline to 43.9% of sales against 44% in 1Q12. At the Renner operation alone, this dilution was 0.4 p.p.

Adjusted EBITDA from Retailing was R$ 42.4 million, in line with the amount reported in 1Q12, Adjusted EBITDA Margin came from 6.9% in 1Q12 to 5.8%. In spite of the contribution generated by the operating leverage, this result reflects largely the impact of greater losses on inventory recognized in the period. On a recurring basis – that is if these effects are ignored – the margin would have improved from 6.9% to 7.5% in 1Q13, representing a growth in nominal values of 29.5%.

The Result from Financial Services posted a growth of 16.3% in relation to 1Q12, reflecting the consistent contribution from Renner card operations.

The combination of Retail and Financial Services operations produced a year-on-year growth in Total Adjusted EBITDA of 7.6% with a Total Adjusted EBITDA Margin of 12.4%. However, if the non-recurring impact of inventory losses is discounted, the Total Adjusted EBITDA Margin would have been 14.2% or 0.7p.p more than 1Q12 with a growth in nominal values of 23.1%.

The Company’s Net Income was R$ 21.6 million, a Net Margin of 3.0% versus 5.8% in 2012. In addition to the variation in the operating result commented above, this reduction also builds in the effect of higher depreciation costs due to the investment plan as well as higher net financial overheads.

During the quarter, the Company rolled out two stores, one Renner store in the city of Porto Alegre in the Southern Region, and one Camicado store in Santos, state of São Paulo. For the year as a whole, the store inauguration schedule is maintained as per the initial forecast.

Lojas Renner

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

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

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

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

Sonam & Paras Modi
SVA

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search