A huge goodwill impairment charge for Rothy’s and Ioasys sent the bottom line deep into the red, with a net loss of BRL 1,606.2 million ($324.3 mm) against a loss of BRL 21.0 million in the prior year as revenue dipped 9% to BRL 1,009.2 million ($203.8 mm) from BRL 1,103.4 million. Gross margin contracted 140 b.p. to 36.3% while SG&A increased 2% to BRL 338.7 million on distribution expense to pick up Havaianas delivery flow, deleveraging 350 b.p. as a percent of sales.

Havaianas sales were off 9% to BRL 991.8 ... Log in to view full article.