Home / Knowledge / News / Apparel/Garments / Lojas Renner records growth in net income for Q1
Lojas Renner records growth in net income for Q1
May '10
LOJAS RENNER S.A., the second largest apparel department store in Brazil, announces its results for the first quarter 2010 (1Q10).

The apparel retailing business in the first quarter of the year is characterized by reduced sales volume in relation to the rest of the year. This reflects the seasonal squeeze on household incomes due to the spike in tax payments and school enrollment fees, not to mention additional expenditures incurred during the summer vacation period. There is also a natural tendency to cut spending following yearend purchases as consumers begin to pay down debt contracted in the preceding quarter.

Also at play this year were some particularly important aspects relating to the recovery in consumption and improvement in the macroeconomic environment.

In spite of heavy rainfall early in the year in the Southeast Region, the weak comparative base of the first quarter 2009 was instrumental in the Company reporting a robust sales performance with a growth of 21.4%, as well as when measured on a Same Stores Sales basis - up 15.1% in 1Q10. The gross margin from the retailing operation amounted to 49.7% in 1Q10 against 47.1% in 1Q09 and in turn an EBITDA margin of 17.4% in 1Q10 versus 11.6% in 1Q09. Store productivity during the quarter is also worthy of note, Net Revenue per m2 posting growth of 11.3% and increasing from R$ 1,579 per m² to R$ 1,757 per m2.

Operational initiatives contributed positively to sales performance and margin gains in 1Q10 and should continue to do so during the current year. Such initiatives include development of the supply chain, adjustments in the proportion of domestic versus imported items, improvements in the make-up of inventory and of procurement planning as well as upgrading of processes for the development of collections and a greater understanding of the specific characteristics of each geographical region. Marketing strategies associated to the Preview of the fall/winter collection and the launch of the new edition of the Renner Magazine also made a contribution to sales during this period.

Lojas Renner closed the first quarter of the year with some very positive results in contrast to the same period in 2009 when the impact of the world crisis left consumers more cautious in their buying habits and the Company was at a transitional phase preparatory to a period of recession which was looming.

Click here for more details.


Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

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

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Igor Chapurin

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search