PORTO ALEGRE, Brazil, July 31 /PRNewswire-FirstCall/ -- Lojas Renner S.A. (Bovespa: LREN3), one of the three largest apparel department store chains in Brazil, today announces its second quarter 2006 (2Q06) and accumulated first semester results (1S06).
-- Lojas Renner continued to implement its expansion plan, inaugurating a
further four stores during the quarter. Two outlets were unveiled in
the Northeast, in Fortaleza (state of Ceara), and a further unit was
opened in the Southeast, in Jundiai (state of Sao Paulo) and another in
the South, in Curitiba (state of Parana), increasing the Company's
nationwide footprint to 72 stores.
-- Net Sales increased 28.1% from R$ 279.1 million in 2Q05 to
R$ 357.7 million in 2Q06, with Same Store Sales recording a year-on-
year growth of 20.6%.
-- EBITDA reached R$ 50.6 million in the quarter, representing an
increase of 38.1% compared with the same period in 2005. EBITDA margin
similarly posted an improvement in relation to 2Q05, increasing from
13.1% to 14.1% in 2Q06.
-- Lojas Renner recorded a quarterly Net Income of R$ 22.9 million and Net
Margin of 6.4%. A direct comparison with the same period in 2005 is
distorted by the booking in 2Q05 of R$ 24.1 million, representing a
positive foreign exchange variation effect on outstanding dollar
denominated debt in that year. However, factoring out this effect, 2Q05
net income would have been R$ 16.8 million and year-on-year growth, in
2Q06, 36.0%.
-- Capital Expenditures in Fixed Assets in 2Q06 amounted to
R$ 32.8 million. Principal investments were allocated to the rollout of
new stores (R$ 22.5 million) and remodeling of installations
(R$ 4.8 million), besides the modernization of systems and IT
equipment (R$ 3.9 million).
-- The Renner Card accounted for 72.8% of sales in 2Q06 compared to in
74.4% the same period in 2005. The Average Ticket for purchases using
the Renner Card jumped from R$ 99.94 in 2Q05 to R$ 108.01 in 2Q06.
-- On June 30, 2006, the Company commemorated its first year as a
Corporation with a listing on Bovespa's Novo Mercado.
Contact
Paula Picinini
Investor Relations Officer
+011-55-51-2121-7044
