Lojas Renner reports EBITA growth of 55.8% in Q4

23 Feb '10

2 min read

LOJAS RENNER S.A., the second largest apparel department store in Brazil, announces its results for the fourth quarter 2009 (4Q09).

Highlights Of The Period

• The Company reported growth in total Net Revenue of 15.6%, increasing from R$ 673.5 million in 4Q08 to R$ 778.8 million in 4Q09.
• Net Revenue from Merchandise Sales rose from R$ 613.8 million in 4Q08 to R$ 711.9 million in 4Q09, an increase of 16.0%. Same Store Sales recorded an increase of +9.5% from October to December.
• Gross Profit from Merchandise Sales posted R$ 347.0 million in 4Q09 and the Gross Margin from the Retailing Operation was 48.7%, representing a significant increase of 3.8 percentage points.
• Average Operating Expenses (selling, general and administrative) per store reported a decline of 4.7% in 4Q09.
• Results from Financial Services were R$ 25.8 million in 4Q09, representing 16.2% of the Company's total EBITDA.
• EBITDA in 4Q09 reached R$ 159.4 million, equivalent to growth of 55.8% in relation to R$ 102.3 million over the same period in 2008 while EBITDA Margin was 22.4% against 16.7% in 4Q08, translating into important growth of 5.7 percentage points.
• The Company ended 4Q09 posting growth in Net Income of 53.4%, from R$ 65.4 million in 4Q08 to R$ 100.3 million.
• Investments in Fixed Assets in 4Q09 amounted to R$ 27.0 million. Principal investments were dedicated to the opening of new stores as well as the remodeling of installations and the upgrading of IT systems and equipment. In the period from October to December four new units were inaugurated bringing the total network to 120 stores in operation.

The fourth quarter is the peak selling season. In addition to the Christmas holidays; the principal commemorative date of the year, the period also coincides with the payment of the socalled thirteenth month salary, paid in two stages during the period, also helping to boost retail sales as a whole during the months from October to December.

Temperatures the quarter under review were more favorable to our business than in 3Q09 and customer appeal in relation to the spring-summer collections was highly satisfactory.

Lojas Renner ended the last quarter of the year with extremely positive results in contrast to the same period in 2008 when the customers had adopted a more cautious posture in relation to purchases.

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LOJAS RENNER S.A.

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