Brazil’s fashion retail sales are firming as an ambitious economic reform agenda lifts economic growth and boosts consumer confidence in Latin America’s largest economy, analysts said.
“The economy as a whole is getting better,” said Rafael Camargo, investor relations director at upmarket retailer Restoque, adding that the firm — one of the biggest victims of Brazil’s 2015 to 2018 recession — could grow 5 to 10 percent this year.
Analysts agreed trade is looking up as consumers increase spending amid strengthening economic growth. Brazil’s Central Bank recently raised this year’s growth forecast to 2.2 percent from a prior 1.8 percent, while 2019 is also expected to gain 1.2 percent versus a previously estimated 0.9 percent.
Mariana Vergueiro, a retail analyst at XP Investimentos, noted the improving outlook has fueled growth at C&A Brazil, which floated in São Paulo last October, and Lojas Renner, widely seen as a benchmark of apparel retail industry performance, which logged a 43 percent stock jump in the past 12 months.
“One of the segments we have highlighted as benefiting from the improving economy is apparel, one of the consumer segments that was most negatively impacted during the recession,” Vergueiro said.
C&A, which raised 1.8 billion reals, or $440 million at
“The economy as a whole is getting better,” said Rafael Camargo, investor relations director at upmarket retailer Restoque, adding that the firm — one of the biggest victims of Brazil’s 2015 to 2018 recession — could grow 5 to 10 percent this year.
Analysts agreed trade is looking up as consumers increase spending amid strengthening economic growth. Brazil’s Central Bank recently raised this year’s growth forecast to 2.2 percent from a prior 1.8 percent, while 2019 is also expected to gain 1.2 percent versus a previously estimated 0.9 percent.
Mariana Vergueiro, a retail analyst at XP Investimentos, noted the improving outlook has fueled growth at C&A Brazil, which floated in São Paulo last October, and Lojas Renner, widely seen as a benchmark of apparel retail industry performance, which logged a 43 percent stock jump in the past 12 months.
“One of the segments we have highlighted as benefiting from the improving economy is apparel, one of the consumer segments that was most negatively impacted during the recession,” Vergueiro said.
C&A, which raised 1.8 billion reals, or $440 million at
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