Q2 2024 Lojas Renner SA Earnings Call (English, Portuguese) Transcript
Key Points
- Lojas Renner SA (BSP:LREN3) reported a 2.3% increase in gross margins, advancing towards pre-pandemic levels.
- The company has successfully integrated AI and data analytics to enhance fashion execution, allowing for quicker trend identification and product development.
- The new distribution center in Sao Paulo, the most advanced in Latin America, has improved logistics efficiency and inventory management.
- Lojas Renner SA has seen a significant increase in transactions and pieces sold, contributing to sales growth.
- The company has improved its credit risk management, resulting in a 23% decrease in overdue portfolio and a positive impact on Realize's results.
- Extreme weather events, including high temperatures and floods, negatively impacted sales in the first half of the quarter.
- The transition to the new distribution center initially caused inefficiencies and longer lead times.
- Despite improvements, the company still faces challenges in aligning inventory with rapid temperature changes.
- The macroeconomic environment remains challenging, with potential impacts from foreign exchange fluctuations expected in 2025.
- The company's expansion plan involves smaller stores, which may not contribute as significantly to growth as larger stores did in the past.
(interpreted) Good Monday , everyone. Let's start the video conference of Lojas Renner SA. Today, here with me Fabio Faccio, CEO; and Daniel Santos, our CFO. Before I give them the floor, I would like to inform that this video conference is being recorded and translated simultaneously. The presentation will be projected in Portuguese and for those who follow us in English will be made available, hereby, chat and our investors relations website. Questions from journalists should be directed to our press office at 11-3165-9586.
And before proceeding, I would like to clarify that forward-looking statements related to the company's business prospects, operating and financial projections, and goals constitute mere forecasts based on current scenario and does not guarantee performance because it depends on circumstances that may or not take place. For the Q&A sessions, we can have them in audio or text.
And with that, I hand the floor over to Fabio.
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