Home / Knowledge / News / Fashion / Fashion retailer Lojas Renner Q3 sales rise 12.9%
Fashion retailer Lojas Renner Q3 sales rise 12.9%
25
Oct '13
LOJAS RENNER S.A. the second largest fashion retailer in Brazil announces its results for the third quarter (3Q13) and the first nine months of 2013 (9M13).

Results from the retailing operation

Net revenue from merchandise sales was R$ 906.9 million in 3Q13, corresponding to a growth of 12.9% compared to the same period in 2012. Sales in July recorded a similar performance to the beginning of the year, but with a strong turnover in winter merchandise, driven by lower temperatures and by more intensive promotional activities in the market.

In August, Fathers’ Day sales performed well and persistent cold weather was also an important factor in driving business. Finally, with the onset of warmer weather, September business reflected the favorable customer reception given to the new spring-summer collection.

Based on the Same Store Sales concept, in spite of the strong performance of 13.2% in 3Q12, 3Q13 sales recorded growth of 5.8%, reflecting buoyant sales in the months of July and August as well as the positive effects arising from changes being implemented in the product mix at Camicado.

Furthermore, if the negative impact of the social security charge on sales (equivalent to -1.4 p.p.) and the estimated effects of stores undergoing refurbishment (equivalent to -0.9 p.p.) are excluded, Same Store Sales would have posted an increase of 8.1% in 3Q13. This confirms that the macroeconomic environment has not resulted in any structural changes to consumer behavior so far.

In 9M13, Net Revenue from Merchandise Sales was R$ 2,580.9 million, representing a growth of 13.3% compared with 9M12. Same Store Sales were up 6.0% for the period.

The Company has been developing in its online sales channel through its website to complement the business conducted in the physical stores and to reach out to markets which Renner still does not serve. Already in its second year of operations, the E-commerce channel offers a full range of products, in 9M13, reporting sales of R$ 24.2 million and registering significant growth of 63.3% over the same period for 2012.

Gross profit from merchandise sales in 3Q13 was R$ 454.4 million, with a growth of 10.0% over the same period for 2012. Gross Margin from the Retailing Operation was 50.1% in 3Q13, 1.3 p.p. lower than the margin of 51.4% reported in 3Q12.

This variation is a consequence of a greater volume in turnover of winter goods compared to the product mix sold in 3Q12, as well as the social security charge on sales, which impacted negatively the Gross Margin by 0.7 p.p. for 3Q13. If this effect is excluded, Gross Consolidated Margin would have been 50.8%. Conversely, Camicado’s Gross Margin reported growth of 5.6 p.p in 3Q13, increasing from 40.3% to 45.9%.

In 9M13 Gross profit from merchandise sales was R$ 1,333.5 million, a growth of 10.3% compared with 9M12 while Gross Margin from the Retailing Operation was 51.7% against 53.1%, still impacted by higher inventory losses recognized in 1Q13 and related to the period of migration to the new security tag system. In this context, it is worth pointing out that following the conclusion of the second inventory cycle in August 2013, losses reverted to their historical levels.

Lojas Renner


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

February 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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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