Apparel retailer Lojas Renner Q1 revenues up 26.8%

03 May '06

2 min read

One of the three largest apparel department stores in Brazil, Lojas Renner S.A announced its results for the first quarter of 2006 (1Q06).

-- On March 29, Lojas Renner began the process of expanding into the northeast region of Brazil by inaugurating its first two stores in the state of Pernambuco in the cities of Recife and Jaboatao dos Guararapes, thus increasing its footprint in the country to 68 stores.

-- Net Revenues increased 26.8 percent over 1Q05, reaching R$ 251.1 million in the quarter. Same Stores Sales reported an increase of 22.0 percent in 1Q06, when compared to the same quarter in 2005.

-- EBITDA Margin remained at the same level of the 1Q05, reaching 11.0 percent in 1Q06 from 11.1 percent in 1Q05. EBITDA amounted to R$ 27.6 million in the quarter, representing an increase of 25.8 percent compared with the same period in 2005.

-- Lojas Renner recorded a quarterly Net Income of R$ 13.5 million, a significant improvement on the Net Income of R$ 2.5 million registered in the same period for 2005, mainly due to better sales performance, as well as a net positive Financial Result of R$ 1.7 million.

-- The Renner Card was responsible for 70.5 percent of the sales during the quarter, against 70.8 percent in the same quarter in 2005. The Average Ticket for purchases using the Renner Card increased from R$ 83.22 in 1Q05 to R$ 89.56 in 1Q06.

Lojas Renner isone of the three largest apparel department store chains in Brazil.

With 68 stores, being 61 mall-based stores and 7 stand-alone stores strategically located throughout the South, Southeast and Mid-Western regions of Brazil, the Company designs, develops and sells women's, men's, teen and children's quality and fashionable apparel, footwear and intimate apparel under the eleven private brands of its Lifestyle concept, each of which targets a specific clothing style.

Lojas Renner S.A

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