Brazilian retailer Magazine Luiza SA reported net revenue of 9.4 billion reais ($1.87 billion) in its fourth quarter, down 6.6 percent year-on-year.

For the full-year, it registered 20.9 percent net revenue growth to 35.2 billion reais, while adjusted net income for the year was 144.2 million reais, almost 70 percent less than in 2020.

The slowdown towards the end of the year has been attributed to the worsening inflationary scenario, rising interest rates and the slow recovery of physical store sales, which were down 18 percent for the fourth quarter and only grew 0.2 percent for the whole year.

Colloquially known as Magalu, the retailer’s pivot to online has paid dividends, with its e-commerce channel accounting for 71.5 percent of total sales in 2021 and third-party sales reporting nearly 69 percent growth for the year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) 243.5 million reais in the fourth quarter dropped 53.5 percent year-on-year.

Magazine Luiza was founded in 1957 and currently operates 1,485 physical stores throughout 21 of Brazil’s 26 states. In recent years it has also become a leading e-commerce platform, rivalling giants B2W, Via Varejo and Latin American behemoth Mercado Libre.

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