Fall/Winter collection shines at Lojas Renner Q2

02 Aug '06

3 min read

Leading apparel department store chains LOJAS RENNER S.A. announces its second quarter 2006 (2Q06) and accumulated first semester results (1S06).

Highlights of the 2nd Quarter Of 2006
• Lojas Renner continued to implement its expansion plan, inaugurating a further four stores during the quarter. Two outlets were unveiled in the Northeast, in Fortaleza (state of Ceará), and a further unit was opened in the Southeast, in Jundiaí (state of São Paulo) and another in the South, in Curitiba (state of Paraná), increasing the Company's nationwide footprint to 72 stores.

• Net Sales increased 28.1% from R$ 279.1 million in 2Q05 to R$ 357.7 million in 2Q06, with Same Store Sales recording a year-on year growth of 20.6%. This result largely reflected the maturation of the stores opened in the past few years and the greater share in revenues generated from the 0+8 interest bearing installment plan, launched in August 2005, accounting for 12.7% of total sales in 2Q06.

Net sales were also driven by growth in numbers of acquisitions of card holders together with enhanced Renner card activation as well as the successful Fall/Winter collection.

• EBITDA1 reached R$ 50.6 million in the quarter, representing an increase of 38.1% compared with the same period in 2005. EBITDA margin similarly posted an improvement in relation to 2Q05, increasing from 13.1% to 14.1% in 2Q06.

• Lojas Renner recorded a quarterly Net Income of R$ 22.9 million and NetMargin of 6.4%. A direct comparison with the same period in 2005 is distorted by the booking in 2Q05 of R$ 24.1 million, representing a positive foreign exchange variation effect on outstanding dollar denominated debt in that year. However, factoring out this effect, 2Q05 net income would have been R$ 16.8 million and year on-year growth, in 2Q06, 36.0%.

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