B2W Cia. Digital, Brazil’s largest online retailer, plunged to a six-month low after posting its 10th straight quarterly loss.
The shares tumbled 7.7 percent to 10.85 reais at the close of trading in Sao Paulo, the lowest since Nov. 14. The stock was the second-worst performer on the country’s benchmark Ibovespa gauge, which fell 0.6 percent.
The Sao-Paulo based company reported a first-quarter net loss of 61.1 million reais ($30.2 million), according to a regulatory filing yesterday after the market closed. The company had been projected to post an adjusted net loss of 46.3 million reais, based on the average estimate of five analysts surveyed by Bloomberg.
“Although top-line growth was solid, sales expenses continue to grow at a faster-than-expected rate,” Banco Santander Brasil SA analysts including Tobias Stingelin wrote in a research note today. “We acknowledge some improvements, but the cash flow drain remains strong.”
Cash sales expenses surged 31 percent from a year earlier and were 7 percent higher than Santander analysts had estimated.
“Investments to improve customer service continue to raise its expense structure,” the Santander analysts wrote.
B2W has lost 36 percent this year while the Ibovespa slumped 9.6 percent.