Magazine Luiza CEO Rules Out Acquisitions Through Mid-2013
Magazine Luiza SA (MGLU3), the biggest gainer among Brazilian retail stocks in the past 30 days, isn’t considering acquisitions though mid-2013 as it focuses on reaching profitability goals after its last two takeovers, Chief Executive Officer Luiza Helena Trajano said.
The Sao Paulo-based retailer’s same-store sales growth will probably slow to 15 percent this year from 16.5 percent in 2011, Trajano, 61, said in an interview in her office in Sao Paulo. Tax cuts prevented Magazine Luiza from posting a bigger decline in sales growth this year, she said.
Retailers are benefitting from President Dilma Rousseff’s stimulus measures. Last month the government extended tax breaks for goods including furniture, appliances and automobiles in an effort to prop up demand and revive growth. Brazilian retail sales increased 1.4 percent in July, the second-fastest month- on-month pace since January, according to a government report today.
Magazine Luiza rose 20 percent in the past 30 days in Sao Paulo, the most among Brazilian retail stocks, after reporting its first profit in three quarters. The shares gained 2.7 percent to 13.18 reais in Sao Paulo at 4:54 p.m., their seventh- consecutive rise.
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