U.S. Stores profit grows 62% in fourth quarter

Lojas Americanas had net income of R$ 398 million in the fourth quarter, an increase of 62% on the performance of a year earlier, with higher sales and progress in the group's e-commerce operations. Including effects of non-recurring tax credits, the company's profit totaled almost R$ 600 million in the last three months of last year, more than doubling on the 245.5 million recorded in the fourth quarter of 2018. The company, the parent company of online retail group B2W, grew 9.2% in net revenue to R$ 6.46 billion between October and December, completing a year in which it inaugurated a record 230 stores in the country. Cash generation measured by earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted was R$ 1.3 billion reais, a 16.2% increase compared to the previous year. Expectations Analysts on average expected net income of 439.6 million for Lojas Americanas in the quarter and an Ebitda of R$ 1.1 billion, according to data from Refinitiv. Also on Thursday (20), B2W released its balance sheet, showing a drop in last quarter's loss over the previous year to R$ 22.3 million, and an expansion of about 31% in gross sales revenue (GMV). Lojas Americanas' sales, general and administrative expenses in 2019 rose 6.8 percent, but fell 0.4 points as a percentage of net revenue. The group's negative net financial result in 2019 was 2.5% lower, for an expense of R$ 1.52 billion.