Restoque reports 5 percent rise in Q2 revenues

REPORT_ In the second quarter of 2014, Restoque’s net revenue grew by 5 percent;

whereas the same-store sales before markdown were up 2.8 percent.

In the 2nd quarter of 2014, Company has been able to maintain positive same-store-sales (SSS), especially at Le Lis Blanc and Bo.Bô brands during May and June until the World Cup. This year, unusually, with a view to minimize the World Cup impact and the effect of the holidays scheduled for June, the markdown event was postponed to the last week of June.

Wholesale sales were impacted by the change in the launching date to the 3Q14. In the second quarter until June 11, sales were 43.9 percent up year over year. In the full second quarter, wholesale gross revenue was 2.5 percent, with a positive highlight to John John brand, which grew by 36.1 percent, even considering the World Cup negative effect and the new collection launch postponement to July 2014.

EBITDA was 39.3 percent up, totaling 45.2 million Brazilian Real (20 million dollars), the largest amount already recorded by the Company since IPO. Gross profit grew from 116.1 million Brazilian Real (51.3 million dollars) in the second quarter of 2013 to 117.6 million Brazilian Real (52 million dollars) in the second quarter of 2014. The gross margin fell by 2.5 percentage points due to the increase in the percentage of outlet sales, which increased from 3.4 percent same quarter, last year to 9.9 percent in 2Q14.