Lojas Renner Announces Third Quarter 2024 Earnings Results

Lojas Renner Announces Third Quarter 2024 Earnings Results

Benzinga
November 7, 2024

PORTO ALEGRE, Brazil, Nov. 7, 2024 /PRNewswire/ -- Lojas Renner S.A. (B3: LREN3), the largest fashion retailer in Brazil, announces its results for the third quarter 2024 (3Q24).

3Q24 Highlights

Fourth consecutive quarter of increased sales driven by an increase in pieces sold and in total transactions, reflecting a 13% increase in apparel sales in Brazil; double the market average based on available data through August 31, 2024.

1.1p.p. retailing gross margin increase reflecting the precision and agility of Renner's fashion execution model; apparel gross margin in Brazil of 55.9%.

Increase in inventory turnover with a significant reduction in older items.

Realize: fourth consecutive quarter of positive results, led by a 32% decrease in net losses and an increased participation of the Renner cards in sales vs 3Q23.

Quality of the credit portfolio evolved sequentially, with a 5.5p.p. decrease in Over90 vs 3Q23, due to a decrease in nominal NPL90.

NPS improvement for all business units.

Total Adjusted EBITDA increased by 59% with a 5.7p.p. margin increase.

48% increase in Net Income, ending the quarter at R$ 255,3 MM; a 2.0p.p. margin increase. ROIC LTM of 12.7% (+2.9p.p. vs 3Q23).

Robust cash position of R$ 2.6 bi, with a net cash position of R$ 1.4 bi and R$ 412 MM in FCF.

Youcom: 27% net revenue growth, and 1.7p.p., gross margin increase.

Camicado: 12% increase in sales, 18% increase in sales per sq meter and a 1.2p.p. gross margin improvement to reach record gross margin for a 3Q. Inventories were reduced by 12%.

Increase in the ecosystem's active customer base, reaching 19.3 MM by quarter's end.

Message from the CEO

"Lojas Renner's third quarter results demonstrate that our business model evolution, and the relevant initiatives we have put in place to date, are unlocking our Company's potential. 13% improvement in third quarter apparel sales, almost double the market average, combined with a 1.1 percentage point gross margin increase is clear evidence. SG&A leverage improved by two percentage points and we delivered R$255 million ...

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