Home / Knowledge / News / Apparel/Garments / Same store sales posts double digit growth at Lojas Renner
Same store sales posts double digit growth at Lojas Renner
29
Apr '11
LOJAS RENNER S.A., the second largest apparel department store in Brazil announces its first quarter results (1Q11).

Highlights

• Net Revenue from Merchandise Sales reported a growth of 17.6% in the period
• Same Store Sales increased 11.2%
• Gross Margin from the Retail Operation remained stable at 53.0%
• Results from Financial Services reached R$ 38.5 million
• Total EBITDA was R$ 85.2 million with an EBITDA Margin of 16.4%
• Net Income for the period recorded growth of 29.0%

Management Comments

The first quarter of the year was a positive one for Lojas Renner and sales in the period increased by 17.6%. Same store sales reported double digit growth and the figures for the combined two years, with reported growths of 15.1% and 11.2% on the 1Q10 and 1Q11 respectively, showed that there has been no deceleration in the Company's post-Christmas sales.

The margin from the retail operation held steady at 53.0% in spite of higher raw cotton prices. During the quarter, the Company implemented various alternatives for reducing costs as well as in the engineering of the products in order to mitigate the impact of more expensive raw materials. Some price adjustments were also made, ensuring good margins without affecting sales volume and accepted by customers. Higher volumes of imported goods also made a notable contribution to margins.

The financial services segment reported positive results, growing 46.1% to R$ 38.5 million in 1Q11. Delinquency remained at low levels and the participation of the Renner card was 53.9%.

On fronts complementary to the core operation, the first Blue Steel store was launched as a test run for the potential creation of a specialized network. Subsequently, on April 4, the Company announced the signature of an agreement to acquire Camicado Houseware, with this acquisition Renner reentering the home and decoration segment. The deal is still subject to shareholder approval by Extraordinary General Meeting to be held on May 4 2011.

During the course of 2Q11, nine new stores, both compact and traditional, are planed to be rolled out. We continue confident as to the opportunities and good results which we shall be able to present up to the yearend.

Operational Data

Sales for 1Q11 benefited from the positive acceptance of the collections, the absence of Carnival festivities in February this year and from the lesser impact this public holiday had in the month of March with the summer season drawing to a close. Lower temperatures in the Southeast region since the middle of the quarter have also contributed to the good sales performance, which was R$ 517.7 million, a growth of 17.6% in the period compared with 1Q10.

On the basis of the Same Store Sales concept, 1Q11 posted an increase of 11.2%, a particularly positive result when set against growth of 15.1% reported for 1Q10. Store productivity evolved in the period from R$ 1,757 per m² to R$ 1,883 per m². The average ticket for purchases using the Renner Card saw growth of 11.0%. These indicators are evidence of the good acceptance of the more recently opened stores and the positive evolution of the Company's operations as part of the expected maturation process.


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

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...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Suresh Patel
Sidwin Fabric

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin
Chapurin

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

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


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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