Restoque net loss widens, to close 20 stores, axe 100 jobs

Clothing retailer Restoque, the owner of the Le Lis Blanc, Dudalina and Rosa Chá brands, among others has said that in the annual comparison, loss in 2016 increased to 61.6 million Brazilian real (20.09 million dollars), nearly three times the loss of 17.2 million Brazilian real (5.61 million dollars) in 2015. Restoque has announced that the company plans to close at least 20 stores and reduce approximately 100 management positions in 2017.

Its net loss in the fourth quarter of 2016 increased by 40.7 percent compared to the same period of 2015.Loss attributable to controlling shareholders increased from 11.2 million Brazilian real (3.65 million dollars) to 15.8 million Brazilian real (5.15 million dollars). The company said,

Q4 witnesses same-store sales growth

In 4Q16, the company's retail channel achieved positive sales index in the same-store sales with John John brands growing 8.5 percent, Le Lis Blanc up 2.2 percent and Bo.Bo up 1.6 percent. Also in this quarter, the Dudalina brand achieved growth in the wholesale channel of 3 percent. In this same channel, the company said, sales of Restoque brands of current collections grew 14.2 percent in 2016, especially John John, which grew 48.2 percent. Gross margin increased 4.8pp reaching 62.2 percent.

The company's net operating revenue of 311.8 million Brazilian real (101 million dollars) in the October-December quarter was 0.6 percent lower than 313.6 million Brazilian real (102 million dollars) in the same period of 2015. EBITDA amounted to 67 million Brazilian real (21 million dollars) in the fourth quarter, 7 percent higher than the 62.6 million Brazilian real (20.4 million dollars) in the same quarter of 2015. In the year 2016, EBITDA was 288.5 million Brazilian real (94 million dollars), 8.3 percent lower than the 249.2 million Brazilian real (81 million dollars) in 2015.

Picture:Dudalina