Brazil : Lojas Renner Merchandise unit registers 23.6% growth

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Lojas Renner Merchandise unit registers 23.6% growth

30
Apr '08

LOJAS RENNER S.A., one of the three largest apparel department store chains in Brazil, announces its results for the first quarter 2008 (1Q08). Except where indicated to the contrary, the following financial and operating information is consolidated according to Brazilian Corporate Law and comparisons refer to the first quarter of 2007 (1Q07).

Given the relevance of the revenue generated from financial services as a result of the growth in these operations and the alignment of the financial statements to international accounting practices, as from December 2007, the Company has begun to include revenues from financial services in Gross Operating Sales Revenue.

Highlights:
The Company's total Net Revenues posted growth of 24.2%, increasing from R$ 347.6 million in 1Q07 to R$ 431.8 million in 1Q08.

Net Revenues from Merchandise Sales reported growth of 23.6% from R$ 310.3 million in 1Q07 to R$ 383.4 million in 1Q08. Same Store Sales recorded an 11.5% improvement over the same period.

Gross Profit from Merchandise Sales were R$ 183.6 million in 1Q08 and Gross Margin showed a growth of 1.4 percentage points from 46.5% to 47.9% in 1Q08, due to improved processing in procurement and inventory management.

EBITDA registered an increase of 42.6% reaching R$ 55.4 million in 1Q08, with the EBITDA Margin as a percentage of Net Revenues from Merchandise Sales at 14.5% in the quarter versus 12.5% in 1Q07.

Capital Expenditures in Fixed Assets in 1Q08 amounted to R$ 18.1 million.

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