While the Brazilian market is hopeful that the release of the FGTS for Brazilians in September will increase the purchasing power of the population, the government is encouraging a new big sales-event to stimulate the country’s economy next month. The results of the three major retail players in the electronics and mobile segment were recently announced, revealing of the items most desired by Brazilians.
Whether these predictions do come true in the coming months, only time can tell. What is undeniable is that, even after a challenging quarter, there were companies that knew how to turn the game in their favor. Find out which ones struck gold this last quarter.
Check out the full list with all the details about the results of the three Brazilian retail giants in the second quarter:
Deciding the winner of Brazilian retail in the last quarter has never been so simple: it was Magazine Luiza, without a doubt. The retailer achieved a growth in net profit of 174.7%, compared to last year’s amount of $ 386 million in the same period. This puts the company into the sixth position overall with the highest revenue among the main retail stores in Brazil. No wonder this is one of the reasons why Magazine Luiza has been making investors’ all the more interested.
Driven by the recent acquisition of NetShoes, the results revealed a 16.6% growth that reached a total of BRL 4,308 billion. And according to the company, e-commerce played a decisive role in the 24.4% increase in sales volume.
E-commerce hit a high of 56.2% in the last quarter, further boosting the brand’s overall results.
When it comes to B2W, last quarter’s results no longer offer reasons to celebrate. The group that brings together powerful brands in Brazilian retail, such as Lojas Americanas, Shoptime, and Submarino, posted a net loss of BRL 127.6 million in the last quarter, which represents a 15.1% worse result than in the same period last year. By the end of June, the company had recorded a total cash value of $ 5.825 billion, which was sufficient to cover the company’s short-term debt.
However, the company is already thinking ahead to reverse this situation. In addition to the consolidation of the B2W carrier that was not considered in the calculation, the company is now embarking on the challenging superapps market, aiming to increase the potential of the group’s existing digital portfolio, Ame.
Only Lojas Americanas accounted for the fifth highest turnover among major retail stores in Brazil, reaching a total value of BRL 20.8 billion.
Via Varejo, owner of two of the biggest brands in the market: Casas Bahia and Ponto Frio, recorded the second highest revenue among retailers in Brazil, reaching BRL 30.5 billion. Even so, the result was not enough to bask in good news, since last quarter ended with a net loss of $ 154 million.
Despite figures from the latest report, the company expressed optimism about the future. “While we are still experiencing a challenging quarter, we have full confidence in the company’s ability to reverse the results,” the statement said.