Same Store sales up 5.3% in fourth quarter at Lojas Renner
09 Feb '12
5 min read
Retail EBITDA increased 39.6%, reaching R$ 202.1 million, with an EBITDA Margin of 20.8% in 4Q11, versus 17.6% in 4Q10. This growth was a result of the good sales performance and the higher gross margin, despite the expenses resulting from the high number of store openings and the dilution caused with the consolidation of Camicado.
Financial Services Result came to R$ 20.5 million, against R$ 33.5 million in 4Q10, affected mainly by expenses related to the launch of the co-branded cards that, in the first instance, do not generate substantial income. In addition, in this quarter, there was no benefit from a reversal of surplus provisions to the non-recurring amount of R$ 10.0 million, accounted in 4Q10. Expenses also increased due to the elevated number of store openings and the increased level of bad debts.
In December, the Company reached 19.0 million Renner Cards issued, with a 54.2% participation in merchandise sales, versus 55.9% in 4Q10. In 4Q11, sales with 0+5 installments plan represented 42.4% of total sales and 0+8 interest-bearing plan came to 11.8%.
In 4Q11, the Renner Card average ticket was R$ 155.78, a 9.1% growth on the R$ 142.74 of 4Q10. On the other hand, the Company average ticket was R$110.37 in 4Q11, 6.7% higher than the same period of the previous year.
For personal credit, the total loan portfolio reached R$ 101.1 million in December 2011 (R$ 74.6 million if adjusted to current value). This represents a 2.6% growth over December 2010. The losses on personal loans and other financial services, net of recoveries, was R$ 6.5 million, versus R$ 4.7 million in the same period of the previous year. The average ticket of loans for the year was R$ 592.00 and the average term was 8 months.