Haha bet on summer collection for increased sales

At a meeting held last Wednesday, the fashion retailer Hering created a strategy Committee. The objective is to assist the Board to prepare the company for a macroeconomic growth cycle whose beginning is expected for the end of this year, according to infomou this Friday the President, Fabio Hering.
The strategy Committee is composed of five members of the Board of Directors: Marcelo Medeiros (representative of Cambuhy investments), Marcos Pinto (representative of the Gávea), Anderson Birman (independent member and founder of Arezzo), Andrea Mota (independent advisor, with a long career in the O Boticário group) and Fabio Hering.
"The Committee will help the management both in monitoring the existing strategy as in the review of the strategy and future plans of the company, looking at not only the organic growth, but creating new inorganic growth prospects, which doesn''t necessarily mean mergers and acquisitions," said Hering to analysts in Conference call.
The strategy Committee will work closely with the people, said Hering.
In House held at the end of April the Board of Directors of Hering was expanded from seven to nine members, to open space to representatives of funds managed by Cambuhy and Gávea. "The two new investors are most welcome and are aligned with us," said the President of the retailer.
The scope and the rules of the existing committees and finance people were reformulated, added Hering.
Multibrand
The Hering hired a consultancy called Integration to develop a plan of targeting to the multi-brand channel. The project, completed two weeks ago, identifies so-called "qualified customers", representing almost 40% of the revenue of the canal.
In terms of supply, the qualified customers would have some preferences about the other as a multibrand showroom. The project does not pass for more discount or for additional periods of sale, said the retailer.
The action plans will begin to be implemented from the summer collection, said the President of the company.
In this segment, whose sales fell back 9.5% in the second quarter, it is difficult to have a prognosis on the performance in the second half of the year, said the Chief Financial Officer and investor relations (IR), Frederick Oldani. The thread is quite related to the economy as a whole, as it is difficult to restore customers after many retailers closed their doors. "With the improvement in the economy, the expectation is that the lines start to stabilize."
Dzarm
Despite the fall of 24% of the gross revenue of Dzarm in the second quarter, the mark will have a significant expansion of shops in 2017, according to Hering. Sales are concentrated in multibrand and Dzarm has only two stores. The expansion will be made by means of own stores and franchisees '' light '', Hering said.
The Hering has struggled to build a new positioning for the Dzarm and compensate for sales disposal of the male line, last year. Gross revenues reached 18,400,000 R$ from April to June.
Crisis
In relation to sales, the Hering continued to face difficulties due to a reduction in consumption because of the crisis, but was able to benefit from the fall of temperatures, especially in the South, Southeast and Midwest in June. The company sold, the full price, the more expensive products, such as winter coats and jackets, and the increased average ticket.
"The heavier items were virtually all sold and there was little left of winter collection to be rescheduled at the end of June and in the months following," Oldani said. Despite the fall in same store sales, the winter was positive for the franchisees, mainly by the little left over, said the Executive.
Hering''s sales in the network of stores and franchises (Hering) decreased by 7.5% in the criterion '' same '' stores (outlets open for at least a year) from April to June, but the profitability of the channel was better, said the direction of the company. The North and northeastern regions are considered the most challenging right now.
In the third quarter, the company does not expect high sales to the consumer. Already in the summer collection, home sales in the fourth quarter, the Outlook is positive, but with caution, said Fabio Hering. The performance in the last months of the year will be favoured by improvement of economic indicators and a base of comparison weaker, stressed Oldani, Chief Financial Officer.
From October to December there is greater likelihood of improvement of margins, especially since the fourth quarter of last year was very unusual, he said. "The performance of the fourth quarter of last year was way off what we believed to be our normal performance and, therefore, we see the possibility of improvement."
"Our perception for the summer collection has a tone of same store sales growth, ''" said Fabio Hering. "The US is preparing for a small growth at the end of the year."
The summer collection have more male and female items meshes, with opportunity of margin improvement. The company will also renew the basic line with focus on knitting, segment in which has strong knowledge.