Restoque Comércio e Confecções de Roupas S.A. said that it focused on increasing sales per square meter and full-price sales, continuing with the restructuring of its stores, which began in 2017, by closing 29 stores in 2018 and 49 in the previous year. As a result, 2018 registered a 6.4 percent growth in net revenue per square meter and 2.7 percent in same store sales with 2.7 percent rise in Le Lis Blanc, 8.9 percent at Dudalina, 5.8 percent at John John and 1.7 percent at Rosa Chá.
In the fourth quarter, sales per square meter increased 1.1 percent and same store sales decreased 2.1 percent. The company added, despite the steady performance of Le Lis and John John (up 0.8 percent and down 0.9 percent, respectively), the quarter’s results were negatively impacted by Dudalina’s performance which, despite an annual growth of 8.9 percent, registered a SSS decrease of 7.2 percent, mainly due to lower sales during the Black Friday.
Highlights of Restoque’s performance
The company’s gross profit improved from 717.9 million Brazilian real (184 million dollars) in 2017 to 792.4 million Brazilian real (203 million dollars), representing an increase of 10.4 percent, with a gross margin of 63.7 percent. The gross profit in fourth quarter of 2017 was of 174.7 million Brazilian real (44.7 million dollars), which increased 6.9 percent to 186.8 million Brazilian real (47.8 million dollars) with a gross margin of 62.9 percent.
Aligned with the profitability improvement, the company said, EBITDA reached 350.6 million Brazilian real (89.8 million dollars). Considering the extraordinary expenses related to manufacturing plant closure in 2018, adjusted EBITDA reached 376.6 million Brazilian real (96.5 million dollars), with a margin of 30.3 percent, 12.4 percent higher than adjusted EBITDA comparable 2017. Adjusted EBITDA in the fourth quarter was 128.2 million Brazilian real (32.8 million dollars), 30.4 percent higher than adjusted EBITDA in 4Q17.
The company’s net income was 103.5 million Brazilian real (26.5 million dollars), impacted by foreign exchange rate variation in the amount of 18.2 million Brazilian real.
The number of company owned stores decreased 10.1 percent, from 287 stores in the fourth quarter of 2017 to 257 stores in the fourth quarter of 2018.
Picture:Facebook/Le Lis Blanc