Owner of the Riachuelo 9.3% more profit

The Guararapes, fashion retailer network controller Riachuelo, recorded net income of r $ 93.1 million in the second quarter, up 9.3% over a year earlier. In the same comparison, the company's net revenue grew almost 12%, to R $ 947,7 million.
There were 6.6 percent advance in sales from stores open more than a year ago, better than the performance reported in the first three months of 2013. The results were released after the close of trading yesterday.
Before interest and taxes, the Guararapes had profit of R $ 138,78 million, 11.32% recorded a year earlier.
Considering only the sale of goods (excludes corporate finance operation), revenue totaled r $ 762,2 million in the second quarter, with high of 15.1%.
There was an increase of 1.1 percentage point in gross merchandise margin. According to the Guararapes, the best profitability occurred under the strong control of costs of production that is being carried out by the company and the further development of modal pieces in the company's own industrial plants.
Riachuelo parts manufactured internally by Guararapes accounted for 28.8% of total sales, a slightly smaller slice than the registered in the first three months of the year. "Such behavior is included in the company's planning since the retail operation should grow at a pace greater than the production capacity of the group," said the company, in its performance report.
During the quarter, the company opened nine stores. In July, three more were opened, totaling 181 units, twelve of them opened this year.
The profit of the financial group, Midway, retreated 5.9%, to $ 28 million. The recipe of this operation was virtually stable compared to the previous year, r $ 184,54 million.
Midway's main product, the sale with interest presented 1.7% reduction. According to the Guararapes, the phenomenon occurred in function of the reduction of the participation of the Riachuelo card in the company's sales, the drop in sales with interest and installment plans implementation in ten times without interest and without entry in the course of December 2012.