Restoque net sales up 3.9 percent in FY14

The combined net sales in 2014 at Restoque were 1,557 million Brazilian real (478.6 million dollars), an increase of 3.9 percent against 2013. The increase in sales resulted mainly from the performance of the wholesale channel, which increased by 2.1 percent. During the fourth quarter, the combined net sales suffered a decrease of 1.6 percent, due to the negative impact of the performance of the wholesale channel.

In 2014, the net sales at its own stores were in line with 2013, decreasing 0.4 percent. Sales in comparable stores decreased 7.9 percent in 2014 in comparison with 2013. In the fourth quarter, there was an increase of 0.9 percent in the net sales of the own stores and comparable store sales performed well, mainly due to the performance of Dudalina and John John brands. The combined net sales of the wholesale channel during the year increased 11.5 percent.

Considering only the Restoque brands such as Le Lis Blanc, John John, Bo.Bô and Rosa Chá, the increase in the net sales was 33.2 percent, with a highlight for the John John brand with a 54.5 percent increase, while the Dudalina brands (Dudalina, Individual and Base) increased 5.7 percent. During Q4, the combined performance of the wholesale channel decreased 7.7 percent in sales, due to Dudalina’s performance, which showed a decrease of 9.2 percent. Sales through Estoque, franchises and e-commerce witnessed an increase of 11.6 percent in 2014 driven by increase in Estoque stores, which went from 8 stores in the end of 2013 to 15 stores at the end of 2014. During 4Q14, the retail channels saw a stable sales performance, which was mostly affected by the reduction of five franchises of the brand Dudalina during the year, which have been repurchased and are now part of the own stores channel.

The combined gross profit in 2014 increased 4.4 percent, representing a gross margin of 62.6 percent, stable in relation to the previous year. The combined gross profit of Q4 increased 2.2 percent. In 2014, the combined EBITDA was margin was 26.4 percent. The result shows a nominal increase of 26.2 percent against the previous year. During the fourth quarter, combined EBITDA showed a growth of 21.3 percent.

During the fourth quarter, the company opened four new stores of Le Lis Blanc, two own stores of Dudalina, four own stores of John John and six own stores of the brand Rosa Chá. A store of Noir was closed and converted into Rosa Chá outlet.