Restoque posts Q2 same-store sales growth of 0.9 percent

For the second quarter of 2018, Restoque Comércio e Confecções de Roupas S.A. reported a 5.7 percent gain in productivity in the retail channel and positive same store sales of 0.9 percent. This result, the company said, was despite the negative impacts on sales of the extraordinary events, such as World Cup matches and the truck drivers' strike.

As a part of it store optimisation effort, the company closed 11 stores during the quarter and had 29 stores less than at the end of 2Q17 and 55 stores less than the end of 4Q16. Restoque added that as in 1Q18, the company improved the sales performance at full price, with a reduction of 50.3 percent in discounted sales volume.

Restoque posts 8.8 percent rise in Q2 EBITDA

As a consequence of the increase in gross profit and margin, the company added, EBITDA for 2Q18 reached 98 million Brazilian real (26 million dollars), up 8.8 percent with a 29.4 percent margin. Adjusted for expenses related to the closure of one of the company's industrial plants, EBITDA reached 102.3 million Brazilian real (27 million dollars), up 9.6 percent, with a margin of 30.6 percent (+3.3 p.p.).

Restoque said net profit for the quarter was of 30.3 million Brazilian real (8 million dollars), compared to 8.3 million Brazilian real (2.2 million dollars) in 2Q17, a growth of 22 million Brazilian real (5.8 million dollars).

The company added that John John achieved the seventh consecutive sales growth period in same stores, reaching a 5.1 percent, while 20.7 percent growth was also recorded by Rosa Chá, 3 percent by Dudalina and 1.6 percent by Le Lis Blanc. Restoque further said that the gross revenue of the Rosa Chá brand was below the previous year due to the reduction in the number of stores, which went from 28 stores in 2Q17 to 19 in this quarter.

The wholesale channel for multi-brand stores had revenues of 93.5 million Brazilian real (24.9 million dollars) in the quarter, 5.1 percent below 2Q17. The company recorded 12.8 million Brazilian real (3.4 million dollars) in e-commerce sales, down 14.6 percent, representing approximately 3 percent of the company's net revenue. The outlets channel operating under the "Estoque" brand, saw a 6.9 percent sales reduction in 2Q18, aligned with the company's strategy of selling less merchandise at a discount. Throughout 1H18, 23.1 percent of stores in this channel were closed as a result of the company's strategy to reduce this channel.

Picture:Facebook/Le Lis Blanc