By Jeffrey T. Lewis


SAO PAULO--Shares of Magazine Luiza SA's shares dropped 11% to 4.77 reais, the equivalent of 93 cents, in early trading after the Brazilian retailer's fourth quarter earnings disappointed investors.

The online market and physical store operator's shares were the biggest decliner on Brazil's benchmark Ibovespa stocks index on Tuesday and were trading at their lowest level since late in 2018.

The company said Monday after the close of trading that it had total sales of 56 billion reais in 2021, an increase of 28% from 2020, and that net income declined 58% in the fourth quarter from a year earlier to 93 million reais.

The retailer's earnings figures for the fourth quarter came in below expectations, according to analysts at Credit Suisse and XP Investimentos.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com


(END) Dow Jones Newswires

03-15-22 1026ET