Feb. 9 (Bloomberg) -- Lojas Renner SA, Brazil’s biggest publicly traded clothing retailer, rose after reporting fourth-quarter sales that exceeded analysts’ estimates.
Renner gained 1.1 percent to 59.41 reais at the close in Sao Paulo, boosting this year’s advance to 23 percent. The benchmark Bovespa index fell 0.5 percent today.
Sales increased 18 percent to 1.06 billion reais ($617 million), above the average 1.04 billion reais estimate in a Bloomberg survey of 12 analysts. Sales at stores open at least a year rose 5.3 percent. Adjusted net income of 119 million reais fell short of the average analyst estimate. The company opened 36 stores in 2011, and ended the year with 164 Renner stores, 30 Camicado stores, and three Blue Steel pilot stores, according to a company statement.
“We believe the economic environment has gradually improved, and the company should continue to deliver improving operating results,” analysts including Ricardo Boiati at Bradesco Corretora wrote in a research note. They rate the shares “outperform.”
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