May 26, 20 - 11:42 am - LABS

Brazilian retailer Magazine Luiza reports loss, but digital sales are going strong

Brazilian retailer Magazine Luiza has reported a first-quarter BRL 8 million ($1.5 million) net loss. The company reported BRL 274 million in earnings for the quarter before interest, taxes, depreciation and amortization, or EBITDA, a common gauge of operational profit, and revenues rose 21% to BRL 5.2 billion.

Magazine Luiza felt the effect of closed stores, due to the social isolation measures initiated in March to prevent the spread of COVID-19, on its numbers and projects greater pressure on profitability until June. But online sales are boosting gross revenues.

To provide greater clarity to the market, the company published data for April and May provided by a KPMG audit. Last month, the expansion of digital (own sales and marketplace) reached 138%. In May, the advance was even bigger, 203%.