Magazine Luiza (BVMF: MGLU3) 4Q15 Results: Earnings Miss Estimates; E-Commerce Sales Up, Brick-and-Mortar Sales Down

Executive Summary

• Magazine Luiza reported 4Q15 net revenues of R$2.5billion, down 8.7% year over year and in line with the consensus estimate. EPS of R$(2.34) was well below the consensus estimate of R$(0.68).
• Comps decreased by 11.6%, while e-commerce sales increased by 19.1%. Brick-and-mortar sales were down 17.6%. E-commerce sales accounted for 21.1% of total sales.
• Net revenues for 2015 were down 8.2%, to R$9.0 billion.