Restoque Q3 net loss shrinks to BRL 8.829 million

Restoque has reported a net loss of 8.829 million Brazilian real (2.70 million dollars) in the third quarter 2016, a 61.1 percent decrease compared to the net loss for the same quarter last year. Net revenue remained flat at 282.3 million Brazilian real (86.6 million dollars).

Restoque said cost of sales decreased by 2.7 percent but gross profit increased by 1.9 percent to 165.7 million Brazilian real (50.8 million dollars). Operating profit for the quarter was 37.2 million Brazilian real (11.4 million dollars), 81.4 percent higher than a year ago. EBITDA was 61.1 million Brazilian real (18.7 million dollars), up 38.9 percent over the year ago period.

Restoque third quarter – A period of recovery

The company said that the third quarter marked a new phase in the recovery route of its financial and operational performance after a cycle of sharp falls in the second half of 2015 to the first quarter of 2016, moving to a scenario of greater stability in the second quarter and achieving growth in this quarter. The result was driven by improved sales performance in retail and wholesale combined with better quality of product mix in all brands, evolution of gross margin and lower SG&A.

Le Lis Blanc brand posted same-store sales growth of 2.5 percent, while John John and Bo.Bô had negative same-store sales rise of 6.3 percent and 4.3 percent respectively. However the company said their performance was negative in July 2016, and positive in subsequent months, including during the month of October. July, the company said, was impacted by delays in receiving goods and availability of releases in summer collection and the reduction in the level of discounts. The retail performance was also negatively influenced by 11.6 percent drop in same-store sales at Dudalina.

Wholesale sales saw a good performance with growth of 2.9 percent. Restoque said considering only the sale of current collection products (full price) to wholesale customers, growth for the period was 8.6 percent, positively impacted by the strong 70 percent growth of John John and 19 percent at Tea Rose. Le Lis brand grew 4 percent in this channel. The performance of Dudalina was negative 1.2 percent.

Picture:Le Lis Blanc