Business

Brazil's retailer Lojas Americanas quarterly loss widens

The company's net loss widened more than 231% from a year earlier to $163 million

Facade of a Lojas Americanas store in Rio de Janeiro
Facade of a Lojas Americanas store in Rio de Janeiro, in 2018. Photo: Reuters/Sergio Moraes/File Photo
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  • In the quarter, Lojas Americanas’ net revenue totaled BRL 5.23 billion, an increase of 29% over a year earlier;
  • However, expenses grew 50%, to BRL 1.17 billion, amid higher expenses with sales and marketing of the digital platform, in addition to investments in its fintech arm Ame.

Brazilian retail group Lojas Americanas saw its loss more than triple in the first quarter, as higher expenses with sales and expansion of its fintech arm Ame overshadowed strong sales growth in the bottom line.

The company that owns B2W said on Thursday that it had a net loss of BRL 163 million in the first three months of the year, a 231% jump compared to the loss recorded in the same stage last year.

READ ALSO: Brazil’s B2W and Lojas Americanas approve proposed merger of operations and target listing in the U.S.

On the one hand, gross sales (GMV) rose 52.8% year on year, to BRL 11.1 billion, leveraged by the growth of the digital platform led by B2W, with which it plans a corporate restructuring and the listing of the company in stock exchange in the United States.

In the quarter, Lojas Americanas’ net revenue totaled BRL 5.23 billion, an increase of 29% over the previous year. However, expenses grew 50%, to 1.17 billion, amid higher expenses with sales and marketing of the digital platform, in addition to investments in its fintech Ame.

READ ALSO: Towards self-sufficiency? Brazil’s Lojas Americanas to inaugurate two new solar generation plants

The company was also affected by the fact that 27% of the sales area of ​​its brick-and-mortar stores were closed due to lockdown policies.

Operating income measured by adjusted earnings before taxes, interest, depreciation, and amortization (Ebitda) shrank 21.5% year-on-year, to BRL 461.5 million, with the Ebitda margin decreasing 5.7 percentage points to 8, 8%.

The company announced last month the acquisition of 70% of the Uni.co group, owner of the Imaginarium and Puket brands in Brazil.

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