Apparel store chain Lojas Renner organic growth strategy pays

30 Jul '05

2 min read

Porto Alegre based Lojas Renner S.A., which is one of the three largest apparel department store chains in Brazil, announced its results for the second quarter of 2005

2nd QUARTER 2005 HIGHLIGHTS

* Following its organic growth strategy, Lojas Renner opened two new stores during this quarter (Campo Grande and Londrina), totaling 64 stores.

* As a result of store maturation and productivity gains, Net Revenues reached R$ 279.1 million in 2Q05, a 16.6 percent increase compared to R$ 239.5 million in 2Q04.

* EBITDA rose 19.8 percent, increasing R$ 30.3 million to R$ 36.4 million in this quarter and EBITDA margin reached 13.0 percent, versus 12.7 percent in 2Q04.

* Lojas Renner recorded a Net Income of R$ 32.7 million, a significant improvement compared to the R$ 1.5 million posted in 2Q04.

* On June 30, the Company carried out its Primary and Secondary Public Offering with the issuance of 9,274,007 shares in the primary offering and 14,672,716 shares in the secondary offering, both at R$ 37.00 per share. This represents the dispersion of Lojas Renner's control in the
capital markets and a R$ 343.1 million capital increase. On July 1, 2005 the Company's shares were listed at Bovespa's Novo Mercado.

Renner is one of the three largest apparel department store chains in Brazil with net revenues of R$953.8 million across 64 stores for the year ended December 31, 2004. The Company designs, develops and sells women's, men's, teen and children's quality fashionable apparel, footwear and intimate apparel under the eleven private brands of its Lifestyle concept, each of which targets a specific clothing style.

The Company also sells accessories and cosmetics through two private brands and offers third-party branded merchandise in certain of its product categories. At the end of the 1Q05 Renner operated 56 mall-based stores and six stand-alone stores in strategic locations throughout the south, southeast and mid-western regions of Brazil.

Lojas Renner S.A.

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