1

4Q20

Earnings

Fashion Tech.

C&A

*MVP - Minimum Viable Product

highlights and recognitions.

2020 was remarkable...

...Significant progress in digital transformation and omnichannel

...Impressive growth in online sales

...Distinctive merchandise margin management

...Strong austerity in expenses and focus on the cash situation ...Committed to people

According to a survey by the Croma Group, ours was one of the 3 brands most closely associated with diversity in Brazil.

Deliveries in the 4Q20 Growth Plan.

New stores and formats:Modernized Supply Chain operating model:

  • 6 new stores opened in 4Q20

  • Total of 295 stores

    • Progress in all 3 fronts: i) distribution network; ii) omnichannel operations and iii) technology

  • CVP* Concept: Total of 209 CVP stores

  • Mini Stores:

    • 3 mini stores in SP

  • Gains in reducing lead times and cost, increasing sales and improving inventory efficiency

DigitalTransformation:Increased credit offering:

  • Total increase in GMV** of 278%, totaling R$206 million

  • App: the main channel, with ~60% of online sales and over 3.4 million monthly active users - most frequently downloaded of all apparel apps in 2020, with 12.4 million new downloads

  • Intense agenda of negotiations with the partner

  • Development of digital solutions to improve the customer experience

* CVP - Customer Value Proposition ** Gross Merchandise Volume

digital transformation: we continue advancing.

  • New office: partial home-office adopted indefinitely, ~20% reduction in office-space, check-in system to book a desk

  • Reinforce and modernize technology: setup tech architecture to digital (API manager, WAF and others),

    31 processes automated (RPAs)

  • Innovation: virtual assistant for Mindese7 and BBB holographic fashion show

API - Application Programming Interface; WAF - Web Application Firewall; RPA - Robotic Process Automation

  • Omnichannel Initiatives: 100% of stores

    - Ship-from-Store

    - Click-and-Collect in 3 hours or less -WhatsApp sales

    - Endless Aisles

zoom on modernizing the supply chain.

Risks mitigated by developing a road-map, creating an experienced team, contracting robust partners and using agile methodology to immediately capture benefits

omnichannel operations:

  • Improved store transportation matrix: 3-fold increase in D+2 deliveries since 1Q20 (start of the pandemic)

  • 14 hub stores to ship-from-store (up to 1,000 orders a day)

Technology:

  • End of the pilot, RFID now used in 9 stores for the entire assortment, plus the Mmindse7 category and suppliers

  • New WMS system already being implemented

Net Revenue.

(R$ million)

-2.4% -24.4%

+13.3% -13.3%

+6.1% -30.3%

ApparelFashiontronicsOther (including financial services)

Gross Profit and Margin.

(R$ million and %)

ApparelFashiontronicsOther (including financial services)

Pro-forma operating expenses.

(R$ million)

SalesG&AOther

Adjusted EBITDA and Proforma Margin.

(R$ million and %)

Margin (%)Adjusted EBITDA

Proforma Margin and Net Profit.

(R$ million and %)

Margin (%)Proforma Net Profit

Investments.

(R$ million)

New StoresRevampsDigital and TechnologySupply Chain

4Q20

Earnings

Contacts: Milton Lucato - CFO

Roberta Noronharoberta.noronha@cea.com.br

Carolina Martinscarolina.martins@cea.com.br

Disclaimer:

The information contained in this document and related to business outlook, projections of operating and financial results and any information related to the growth outlook for C&A Modas are based excursively on Management expectations on future business. Said expectations depend substantially on market conditions, the performance of the Brazilian economy, the industry and international markets, and are subject to change without notice.

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C&A Modas SA published this content on 19 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2021 22:18:11 UTC.