Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Hering Gains Most in Two Weeks on Brazil Growth Outlook

Sept. 16 (Bloomberg) -- Cia. Hering led gains by Brazilian retailers after analysts boosted growth forecasts for Latin America’s largest economy.

Hering, Brazil’s second-largest clothing retailer by market value, rose 3.8 percent to 34.70 reais at the close of trading in Sao Paulo, the biggest advance in two weeks. Bigger competitor Lojas Renner SA advanced 0.8 percent to 67 reais.

Companies that sell in the local market advanced after a central bank survey showed that economists covering Brazil forecast that gross domestic product will expand 2.4 percent this year, up from a 2.35 percent estimate a week earlier. A report last week showing that the country’s retail sales increased more than forecast in July also helped spark demand for the shares, said Joao Pedro Brugger, a portfolio manager at Leme Investimentos.

“Retail sales have been growing faster than GDP, and that will probably continue to be the case for a while,” Brugger said in a phone interview from Florianopolis, Brazil. “Many stocks in this sector are attractive. Renner is one of my favorites.”

Hering trades at 15.1 times forecast earnings for the next four quarters, which compares with a ratio of 17.8 times for Renner, data compiled by Bloomberg show. They’re the cheapest retailers on the Ibovespa, which trades at an average ratio of 21.1 times estimated earnings.

Retail sales in Brazil increased 3.7 percent in July from a year earlier, the national statistics said Sept. 12. That exceeded the median estimate of 3.1 percent among analysts surveyed by Bloomberg.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.