Except where otherwise indicated, the following results include the operations of Camicado. The information shown as “Lojas Renner” consolidates the results for Lojas Renner S.A. – parent company, Dromegon Participações Ltda. and Renner Administradora de Cartões de Crédito Ltda.
The first quarter of the year was characterized by a good continuing level of sales, benefiting from favorable customer reception to the fallwinter collection and by seasonal temperatures. This combination of factors was instrumental to the Company reporting total consolidated growth of 17.4% in Net Revenue from Merchandise, Same Store Sales reporting an increase of 9.4%.
Gross Margin from the Retailing Operation of 51.2% was impacted principally by the recognition of higher losses on inventory (R$ 12.9 million) related to the transitional process involving migration to the security tags system and the lower margin from the Camicado business. If the inventory effects are discounted, the Renner operation would have shown a Gross Margin improvement of 0.6 p.p.
Despite the large number of stores recently opened and the new Rio de Janeiro Distribution Center, operating expenses reported a slight dilution in relation to Net Revenue. The postponement of the remodeling of some stores together with the Company’s rigid cost control saw operating expenses decline to 43.9% of sales against 44% in 1Q12. At the Renner operation alone, this dilution was 0.4 p.p.
Adjusted EBITDA from Retailing was R$ 42.4 million, in line with the amount reported in 1Q12, Adjusted EBITDA Margin came from 6.9% in 1Q12 to 5.8%. In spite of the contribution generated by the operating leverage, this result reflects largely the impact of greater losses on inventory recognized in the period. On a recurring basis – that is if these effects are ignored – the margin would have improved from 6.9% to 7.5% in 1Q13, representing a growth in nominal values of 29.5%.
The Result from Financial Services posted a growth of 16.3% in relation to 1Q12, reflecting the consistent contribution from Renner card operations.
The combination of Retail and Financial Services operations produced a year-on-year growth in Total Adjusted EBITDA of 7.6% with a Total Adjusted EBITDA Margin of 12.4%. However, if the non-recurring impact of inventory losses is discounted, the Total Adjusted EBITDA Margin would have been 14.2% or 0.7p.p more than 1Q12 with a growth in nominal values of 23.1%.
The Company’s Net Income was R$ 21.6 million, a Net Margin of 3.0% versus 5.8% in 2012. In addition to the variation in the operating result commented above, this reduction also builds in the effect of higher depreciation costs due to the investment plan as well as higher net financial overheads.
During the quarter, the Company rolled out two stores, one Renner store in the city of Porto Alegre in the Southern Region, and one Camicado store in Santos, state of São Paulo. For the year as a whole, the store inauguration schedule is maintained as per the initial forecast.
| On 8th Mar 2021
After a month of Vietnam signing a free trade agreement (FTA) with...
| On 8th Mar 2021
A wide array of economic indicators point toward potentially record...
In a major step towards recycling, scientists at Sweden’s Lund...
Opportunity now to reimagine processes & systems in a digital environment
One thing is certain, online sales will go up
Great step towards realising end goal of 'AtmaNirbhar Bharat'
<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...
The Riri Group is a one-stop supplier of metal accessories for the luxury...
Established in 2017 and headquartered New York, the label Harleen Kaur...
Hula Global, a leading isolation gown manufacturer in India, has been...
INDA, a global association of the nonwoven fabrics industry, has been...
Twinery Innovations by MAS
Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...
<span style="font-size: 12px;">Designer <b>Suman Nathwani</b> talks about...
Gramin Vikas Evam Chetna Sansthan
Ruma Devi is a jet-setting promoter of artisans who has empowered...
Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep
Established in 2012, Sarah & Sandeep is a luxury menswear label...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.