Guararapes shares soared this Thursday, representing the best performance of the Small Caps index on B3, despite reporting a loss of 17.6 million reais in the second quarter, reversing a positive result of 26.4 million a year Before.
The action’s high comes after shares retreated in five of the last six trading sessions, adding a 15.6% loss and closing the day before at 6.21 reais, the lowest since mid-June. This Thursday, at 12:53, the share appreciated by 10.14%, to 6.84 reais, reaching a high of 7.05 reais. Small caps recorded a 0.13% increase.
The fashion group’s financial statements also showed a contraction in same-store sales – 2.3% in the physical channel and 3.8% in the physical and digital channel – and a 0.7% drop in consolidated net revenues, to 2 .1 billion reais. Consolidated Ebitda decreased by 8.8% on an annual basis, with the margin passing from 12.2% to 11.2%.
The company attributes the deterioration in partial sales to a strong comparison base and warmer temperatures, while stating that consolidated EBITDA is impacted by merchandise performance, partially offset by growth at Midway Financeira and Midway Shopping.
For Itaú BBA analysts, the retail and fintech divisions showed a weak track record, with a difficult comparison base and promotions hurting retail profitability, while fintech remains impacted by macro adversity, with weak profitability for another quarter.
“On the other hand, the company shared some encouraging ‘KPIs’ (performance indicators) regarding June retail sales and initial ‘NPLs’ (delinquency) improvement, which we will monitor closely over the coming months,” they said. added the analysts in the report to customers .
Safra’s team also highlighted a “difficult dynamic” in the result, but assessed that the company presented a major improvement in terms of cash flow.
The owner of the Riachuelo chain recorded free cash generation of 136.4 million reais against cash consumption of 196.3 million in the second quarter of last year, with an improvement of 332.7 million due to the working capital and lower investments.
Analysts at XP Investimentos also viewed the results as weak but added that they were above their forecasts, noting that net revenues were under pressure relative to the comparison base, but there were savings in general and administrative expenses in merchandising operations and at Midway.
Consolidated operating expenses decreased 9.7% in the second quarter year-over-year, with selling expenses down 8.4% and general and administrative expenses down 12.5%. As a percentage of net revenues, it fell 3.5 percentage points to 35.2%.
Source: Terra
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