Lojas Renner Merchandise unit registers 23.6% growth

April 30, 2008 - Brazil

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.

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.

The Renner Card accounted for 62.2% of 1Q08 sales. The Company has now issued a total of 12.4 million store cards with an average ticket of R$ 101.35, against R$ 93.57 reported in 1Q07.

On March 11, Lojas Renner announced that it had signed a Memorandum of Understandings which envisages the acquisition of 100% of the shares issued by Leader S.A. Empreendimentos eParticipações, the holder of 100% of the capital stock of União de Lojas Leader S.A., and, indirectly, of 50% of the capital stock of Leader S.A. Administradora de Cartões de Crédito.

On March 31, following the first convening notice, Lojas Renner held its General Shareholders’ Meeting (GSM) at which the accounts for the fiscal year of 2007, management compensation, allocation of Profit and the distribution of dividends were approved. Members of the Board of Directors and the Fiscal Council were also elected.

On the same occasion, Deborah Patricia Wright was elected to the Board and Claudio Thomaz Lobo Sonder was appointed as its Chairman, replacing Francisco Gros, who remains a Board member and that is increasingly engaged in a number of other projects.

The GSM approved the distribution of dividends of R$ 82.2 million (R$ 0.6763 per share), payout being on April 10. As a result, shareholder remuneration, including interest on equity paid in January amounted to R$ 34.7 million (R$ 0.2852 per share), totaled R$ 116.9 million (R$ 0.9615 per share), representing a pay-out of 75% (distributed dividends per net income) and a dividend yield of 2.7% (dividends per share on the price of the share), based on the price of R$ 36.00 as at December 28, 2007.

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