B2W Cia. Global de Varejo, Brazil’s biggest online retailer, tumbled the most in two months after reporting a first-quarter loss that was wider than analysts had estimated.
Shares dropped 5.3 percent to 7.22 reais at the close in Sao Paulo, the lowest since March 2005. The benchmark Bovespa index fell 1 percent.
The subsidiary of Lojas Americanas SA posted a first-quarter loss of 42.8 million reais ($21.9 million), according to a statement on its website. The result compared with the average estimate of an adjusted net loss of 17.6 million reais in a Bloomberg survey of nine analysts.
“Visibility remains low and the revamp of its systems, logistics, distribution and also brand equity continues to be a painful and lengthy process,” Tobias Stingelin, an analyst at Banco Santander Brasil wrote in a note to clients. “Meanwhile cash burn remains high, imposing another challenge to the company.”
B2W has dropped 69 percent in the past 12 months, the worst performance on the Bovespa, as rising competition pushed revenue lower. The benchmark slipped 7.5 percent in that period.
First-quarter consolidated net sales fell 2.7 percent, compared with a 2.1 percent drop in the last three months of 2011, according to B2W’s statement. The revenue figure is “evidence that B2W continues to aggressively lose market share,” Stingelin wrote.