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Lojas Renner Surges: Q3 Profits Soar Amid Retail Sector Challenges
(MENAFN- The Rio Times) Lojas Renner, Brazil's leading fashion retailer, has reported impressive financial results for the third quarter of 2024. The company's net profit reached R$255.3 million ($44.8 million), marking a substantial 47.7% increase from the same period in 2023. This growth occurred despite ongoing economic uncertainties in Brazil's retail sector.
The company's revenue also showed significant improvement. Net revenue climbed to R$3.39 billion ($594.7 million), a 9.5% increase year-over-year. Retail revenue, a key indicator of the company's core business, grew by 12.1% to R$2.956 billion ($518.6 million).
Lojas Renner's digital presence strengthened during this period. The company's digital gross merchandise volume (GMV) reached R$656.1 million ($115.1 million), representing a 23.8% increase. Digital sales now account for 16.7% of total sales, up from 15.3% in the previous year.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable 59.1% increase, reaching R$576.8 million ($101.2 million). This growth reflects improved operational efficiency and cost management strategies.
Lojas Renner's CEO, Fabio Faccio, attributed the strong performance to the company's evolving business model. He highlighted a 13% increase in clothing sales, nearly double the market average. The company also improved its gross margin by 1.1 percentage points.
Despite these positive results, Lojas Renner faced challenges in its financial services arm, Realize. The active customer base decreased from 5.2 million to 4.7 million due to stricter credit policies. The credit portfolio also shrank by 1.5% to R$5.7 billion ($1 billion).
The company ended the quarter with a net cash position of R$1.4 billion ($245.6 million), up from R$1.2 billion ($210.5 million) a year earlier. This strong liquidity position provides Lojas Renner with flexibility for future investments and growth opportunities.
The company's revenue also showed significant improvement. Net revenue climbed to R$3.39 billion ($594.7 million), a 9.5% increase year-over-year. Retail revenue, a key indicator of the company's core business, grew by 12.1% to R$2.956 billion ($518.6 million).
Lojas Renner's digital presence strengthened during this period. The company's digital gross merchandise volume (GMV) reached R$656.1 million ($115.1 million), representing a 23.8% increase. Digital sales now account for 16.7% of total sales, up from 15.3% in the previous year.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable 59.1% increase, reaching R$576.8 million ($101.2 million). This growth reflects improved operational efficiency and cost management strategies.
Lojas Renner's CEO, Fabio Faccio, attributed the strong performance to the company's evolving business model. He highlighted a 13% increase in clothing sales, nearly double the market average. The company also improved its gross margin by 1.1 percentage points.
Despite these positive results, Lojas Renner faced challenges in its financial services arm, Realize. The active customer base decreased from 5.2 million to 4.7 million due to stricter credit policies. The credit portfolio also shrank by 1.5% to R$5.7 billion ($1 billion).
The company ended the quarter with a net cash position of R$1.4 billion ($245.6 million), up from R$1.2 billion ($210.5 million) a year earlier. This strong liquidity position provides Lojas Renner with flexibility for future investments and growth opportunities.
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