Restoque posts 39.5 percent decline in revenue

Restoque’s gross revenue in 2020 was 0.2 percent above the projections disclosed to the market in may 2020 of 751.4 million Brazilian real, but 39.5 percent lower than the gross sales revenue of 2019.

The company said, decline results in part due to the reduced flow in stores as a result of the pandemic and the restrictions on operation and circulation and also due to 48 percent lower markdown sales. In line with the purpose of preserving gross margin and reducing markdown sales in the outlets channel, sales in the outlet site also dropped 63 percent in the fourth quarter.

However, Restoque witnessed a recovery in sales of the b2c channel in relation to the previous quarters. In the third quarter, the company saw 37 percent decline in sales, while fourth quarter sales dropped by 21 percent compared to the fourth quarter of 2019.

The company continued the strategy of ensuring a greater share in the full-price sales and, in the quarter, reduced markdown sales by 48 percent, while full-price sales fell 15 percent. Restoque added that digital sales have been playing an important role in resuming growth. With consistency and substantial improvement in operating indicators, these sales grew by 88 percent in the fourth quarter of 2020.

The company closed seven outlet stores in 2020 and expects to close another seven in 2021. During the quarter, the outlet stores recorded a loss of 21.3 percent and 46.1 percent in 2020 compared to 2019. Sales of the outlet site were 62.5 percent lower during the fourth quarter and 48.8 percent lower in 2020 compared to 2019.

The company recorded positive adjusted ebitda by 28.3 million Brazilian real with ebitda margin of 14 percent. This reflects a greater balance in the generation of adjusted gross margin of 60 percent and discipline in expenses. Year-to-date, the adjusted gross margin was 55.3 percent and the adjusted ebitda was 30.5 million Brazilian real.

Image: Dudalina, Facebook