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Lojas Renner reports FY 2010 growths of 10.3% in same store sales
17 Feb '11
5 min read
Selling, General and Administrative Expenses
Selling Expenses recorded an increase of 22.4% from R$ 160.1 million in 4Q09 to R$ 196.0 million in 4Q10. In relation to Net Revenue from Merchandise Sales, Selling Expenses reported an increase from 22.5% in 4Q09 to 23.8% in 4Q10. Excluding reclassifications in the income statement accounts, Selling Expenses would have risen 23.6% from R$151.9 million in 4Q09 to R$ 187.8 million in 4Q10 and in relation to Net Revenue from Merchandise Sales, Selling Expenses would also have risen from 21.3% in 4Q09 to 22.8% in 4Q10.
These increases are connected to the recomposition of the labor force in the store level and to the expenses related to special projects involving e-commerce and compact stores. Pre-operating expenses for a larger number of stores rolled out in the period (eight stores in 4Q10 versus four in 4Q09) and the Company's structure of fixed costs also contributed to the increase reported - many of the stores inaugurated in November and December making very little contribution to the dilution of expenses. Average expenses per store reported an increase of 11.1% in 4Q10 from R$ 1,357.1 thousand in 4Q09 to R$ 1,507.6 thousand.
General and Administrative Expenses increased 22.4%, totaling R$ 63.9 million in 4Q10, against R$ 52.2 million reported for the same period 2009. This item as a percentage of Net Revenue from Merchandise Sales was 7.8% in 4Q10 against 7.3% in 4Q09. These variations reflect the expenses related to the structure which will support the Company's expansion in the coming years as well as special projects currently in development such as investments in logistics/IT and overheads related to the compact store project. In 4Q10, average expenses per store saw an increase of 11.1% from R$ 442.3 thousand to R$ 491.5 thousand.
Should expenditures linked to the projects and the pre-operating costs of the new stores be excluded, then Selling, General and Administrative Expenses would have totaled R$ 247.5 million in 4Q10 versus R$ 212.3 million in 4Q09, representing a growth of 16.6%. These expenses as a percentage of sales would have been basically in line, representing 30.0% in the 4Q10, an increase of 0.2 percentage points against 4Q09.
Profit Sharing Program
In 4Q10 Profit Sharing Program overheads amounted to R$ 8.2 million against R$ 11.1 million in 4Q09 and are registered in the “Other Operating Results” line.
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Selling Expenses recorded an increase of 22.4% from R$ 160.1 million in 4Q09 to R$ 196.0 million in 4Q10. In relation to Net Revenue from Merchandise Sales, Selling Expenses reported an increase from 22.5% in 4Q09 to 23.8% in 4Q10. Excluding reclassifications in the income statement accounts, Selling Expenses would have risen 23.6% from R$151.9 million in 4Q09 to R$ 187.8 million in 4Q10 and in relation to Net Revenue from Merchandise Sales, Selling Expenses would also have risen from 21.3% in 4Q09 to 22.8% in 4Q10.
These increases are connected to the recomposition of the labor force in the store level and to the expenses related to special projects involving e-commerce and compact stores. Pre-operating expenses for a larger number of stores rolled out in the period (eight stores in 4Q10 versus four in 4Q09) and the Company's structure of fixed costs also contributed to the increase reported - many of the stores inaugurated in November and December making very little contribution to the dilution of expenses. Average expenses per store reported an increase of 11.1% in 4Q10 from R$ 1,357.1 thousand in 4Q09 to R$ 1,507.6 thousand.
General and Administrative Expenses increased 22.4%, totaling R$ 63.9 million in 4Q10, against R$ 52.2 million reported for the same period 2009. This item as a percentage of Net Revenue from Merchandise Sales was 7.8% in 4Q10 against 7.3% in 4Q09. These variations reflect the expenses related to the structure which will support the Company's expansion in the coming years as well as special projects currently in development such as investments in logistics/IT and overheads related to the compact store project. In 4Q10, average expenses per store saw an increase of 11.1% from R$ 442.3 thousand to R$ 491.5 thousand.
Should expenditures linked to the projects and the pre-operating costs of the new stores be excluded, then Selling, General and Administrative Expenses would have totaled R$ 247.5 million in 4Q10 versus R$ 212.3 million in 4Q09, representing a growth of 16.6%. These expenses as a percentage of sales would have been basically in line, representing 30.0% in the 4Q10, an increase of 0.2 percentage points against 4Q09.
Profit Sharing Program
In 4Q10 Profit Sharing Program overheads amounted to R$ 8.2 million against R$ 11.1 million in 4Q09 and are registered in the “Other Operating Results” line.
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LOJAS RENNER S.A.
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