Americanas Reports Q1 Loss Due to Easter Calendar Mismatch

Brazilian retailer Americanas reported a net loss of 496 million reais for Q1 2023, a drastic shift from last year’s profit. The loss is attributed to the misalignment of the Easter calendar, leading to a decline in revenues. The company, still in bankruptcy protection, aims for improved performance through store closures and plans for new locations.

Americanas, a major retail player in Brazil, has reported a disappointing net loss of 496 million reais (approximately $88 million) for the first quarter of this year. This marks a stark contrast from a profit of 453 million reais in the same period last year. The company attributed its downturn to the unfortunate timing of the Easter holiday, which occurred in the second quarter this year, creating a significant mismatch in their sales calendar.

In more troubling financial news, the company recorded an adjusted negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of 20 million reais, down notably from a positive result of 243 million reais last year. Leonardo Coelho, the Chief Executive of Americanas, pointed out that Easter is a crucial sales period, stating, “Easter is almost as important to us as Christmas.”

Despite these setbacks, Coelho indicated that if comparing the first four months of 2025 with the same timeframe last year, Americanas would be looking at a potential revenue growth of about 10%. However, the net revenue for the quarter experienced a decline of 17.4%, landing at 3.06 billion reais—an indicator that the company still has a way to go in recovering its market position.

Already navigating through bankruptcy protection due to recent financial turmoil tied to a major accounting fraud scandal, Americanas has witnessed a drastic drop in both profitability and consumer confidence. Coelho emphasized, however, that the company is focused on improving its results each quarter, recognizing the difficulty of the task at hand.

On the operational side, Americanas has shut down roughly 80 stores in 2024 as part of an effort to streamline its business. Coelho also mentioned plans are in place to enhance the performance of less profitable outlets. Furthermore, the company is looking to establish new sales points in the Northeast region of Brazil later this year, as it strives to rebound from its recent challenges.

In summary, Americanas has faced a challenging first quarter with substantial losses primarily attributed to the unusual timing of Easter this year. The company’s future remains uncertain as it continues to navigate bankruptcy proceedings and aims for operational improvements. While there are signs of potential growth next year, the ongoing need for restructuring and profitability remains pressing. Americanas is taking steps to strengthen its offering and expand its reach, particularly in underperforming areas of the country.

Original Source: www.tradingview.com