Magazine Luiza has 51% fall in profit

Second largest electronics retail group in the country, the Magazine Luiza ended the second quarter with net profit 51.3% less than the established in 2013. The fall reflects a comparison base affected by non-operating factors. There was the sale of a distribution center last year that broadened profit from April to June 2013 for $ 43 million, which explains the fall this year.
By cashing this effect, the magazine's profit grew 130.6% to r $ 26.6 million. "Continues to be a challenging year, but we're hitting the targets. In July, the goal [of sales] proposal was reached [...]. We are working to keep the gross margin at normal levels, in the range of 28% in the third and fourth quarters, and without losing the sales pace, "said Marcelo Silva, Chief Executive Officer. From April to June 2014, gross margin was 27.1% versus 28.2% in 2013, effect of increased sales of televisions last year.
The net income from April to June was discharged from 28.5% to r $ 2.34 billion. The same-store gross sales (points in operation for more than one year) expanded 24.5%, including the site (in physical stores grew by 21.3%) rate considered high for this criteria-in sector, same-store sales have been in the range of a digit.
The selling expenses totaled r $ 415,8 million, equivalent to 17.7% of net revenues, a 1.5 point reduction. General and administrative expenses totaled r $ 106.2 million, equivalent to 4.5% of net revenue (0.2 point lower than in 2013).
The Magazine Luiza has gone through a restructuring process between 2011 and 2012, after acquisition of the networks of the Chest and Maia and a period of greater pressures on delinquencies. Measures have been taken to reduce costs, increase efficiency and enhance synergy gains in the group, with the intention of reversing negative results.
The company ended June with 736 points, being 628 physical stores and 107 stores (points with terminals for access to the site). In the second quarter, opened two stores and plans to open 21 until December. The company reported that, "as part of the process of increased productivity and rationalization of costs and expenses", ten shops were closed because of overlap with other points.
Luizacred, customer financing arm had fallen 5.5% on card base in June. There was high of 17.8 percent in the value of the credit portfolio. The company stressed that "continuing conservative practices, Luizacred kept reduced the rates of approval of proposals for funding in the second quarter". Itaú Unibanco defines the credit policies of the company.