Net loss at the Brazilian e-tailer increased to BRL47.8 million ($15.1mm) from a loss of BRL30.3 million in the third quarter as net sales increased 7% to BRL414.2 million (140.6 mm) from BRL444.6 million boosted by marketplace sales and a fast-growing private label business. Gross margin contracted 100 basis points to 32.2% due to discounting of cold weather merchandise to clear slow selling inventory after a warm southern hemisphere winter. An extra BRL24 million of operating expenses included BRL14.7 million in bad debt allowance for NETS’ small B2B business, which is being restructured, as well as additional marketing spending.

The home ... Log in to view full article.