Restoque 2013 revenues increase 12.2 percent

REPORT_ Brazilian fashion retail leader Restoque Comércio e Confecções de Roupas reported results for the fourth quarter of 2013 and 2013 with full-year net revenues going up 12.2 percent from 2012 to 2013. Ebitda was up 23.5 percent year-on-year in 2013.

Gross margin in the full-price distribution channels (company stores, wholesale, and online sales) was 74.0 percent, higher than the 73.4 percent gross margin of these same channels in the fourth quarter of 2012. During the fourth quarter of 2013, the sales products throughout these channels had positive gross margin of 5.9 percent. The average discount of its sales through the discounted channels (outlet and outlet online) was 69 percent in the outlets and 71 percent in the on-line outlet for the fourth quarter of 2013 period.

In 2013,

São Paulo, the Brazil headquartered company’s consolidated gross margin was also down, to 65.2 percent, from 69.1 percent in 2012.

In the fourth quarter, it opened four company stores under the Le Lis Blanc brand, five company stores under the John John brand and eight corners of the Noir, Le Lis brand in Le Lis Blanc stores.

Company’s fourth quarter gross revenue was 5.4 percent more than in the fourth quarter last year. The year-on-year increase in the quarter mainly reflects the increase of sales through multi-brand stores and other channels (online and outlets), which were respectively 11.1 percent and 116.3 percent higher year-on-year in the quarter.

Net sales revenue in the fourth quarter was 4.0 percent higher year-on-year. In the full year, net revenue, was 12.2 percent higher than in 2012. Gross profit, at 128.1 million Brazilian Real (54.7 million dollars) in the fourth quarter, was lower than in the fourth quarter last year profit of 132.1million Brazilian Real (56.4 million dollars). Gross margin was 4.9pp lower than in the fourth quarter last year. In addition to the start of outlet operations, the strong off-price sales that company made in the first quarter of 2013 also affected the gross margin for full-year 2013, which was 3.9pp lower – at 65.17 percent in 2013, compared to 69.09 percent in 2012.