Brazilian fashion retailer Lojas Renner Q2 sales quadruple

04 Sep '21

2 min read

Pic: Lojas Renner

Brazilian fashion retailer Lojas Renner’s second quarter (Q2) revenues from merchandise sales have quadrupled to R$ 2,257.5 million (Brazilian real) compared to the revenue of R$ 539.6 million in the same period of prior fiscal. Digital sales for the quarter ended on June 30, 2021, expanded 66.5 per cent to R$ 414.5 million (Q2 FY20: R$ 248.9 million).

“The second quarter of the year proved to be a turning point in the company’s sales performance. This became more apparent especially from April 19 when a degree of flexibility was introduced with the lifting of some restrictions and the activities of the majority of the stores resumed,” the company said in a statement.

“Currently, in our omnichannel journey, the inventory at the bricks-and-mortar stores is 100 per cent available to support online purchases, significantly increasing the assortment as well as harnessing the stores for last mile delivery. Additionally, we continue investing in the expansion of the store network with the opening of 27 units in the quarter, as well as the Guide Shop pilot, rolled out in April,” the statement further added.

Sales of Renner brand during Q2 FY21 accelerated 480.9 per cent to R$ 2,045.7 million (R$ 480.9 million). Whereas sales of Camicado brand escalated 205.2 per cent to R$ 149.6 million (R$ 49.0 million) benefited from the resumption in consumer mobility as well as improvements made to assortment and store operations. Moreover, Youcom brand sales during the three-month period skyrocketed 539.1 per cent to R$ 62.2 million (R$ 9.7 million).

Gross profit from merchandise sales increased to R$ 1,240.7 million (R$ 241.8 million). However, adjusted EBITDA from retailing operation dropped 38.7 per cent to R$278.4 million (R$ 454.2 million). For the second quarter, net result fell to R$193.1 million (R$ 818.1 million).

“We continue to invest in the strengthening of our value proposition to continue to gain market share, increasingly consolidating as a leader ecosystem in our segment. We are already the largest omni fashion player in Brazil and we continue committed to our projects, grounded in our ESG performance and through solid relations with our stakeholders,” the Brazilian retailer concluded.

Fibre2Fashion News Desk (JL)

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