- Angela Gonzalez-Rodriguez
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New York – Lojas Renner SA reported on Thursday a quarterly net
profit that was 45 percent higher year-on-year and greatly exceeded
market expectations, helped by double-digit sales growth.
Brazil’s largest fashion retailer issued a securities filing,
indicating first-quarter net profit came in at 161.6 million reais
(circa 41 million dollars based on new international accounting
standards IFRS.)
Analysts had projected a profit of 128.2 million reais in the
period, according to consensus estimates compiled by Refiniti.
“April is evolving according to our expectations and we have
important retail events ahead of us such as Mother’s Day and
Valentine’s,” CFO Laurence Gomes said in a phone interview with
Reuters, referring to expectations for the second quarter.
Same-store sales growth accelerated 12.7 percent, compared with 6.3
percent a year ago. Net revenue increased 18 percent while operational
costs fell 4.6 percent. As a result, net margin rose 1.8 percent.
Gomes advanced the company’s plans to invest 700 million reais in
2019, including a new 150,000-square-metre distribution center in the
Southeast of Brazil.
On the back of the news, the retailer’s stock closed 5.8 percent
higher on Thursday.
