By Jeffrey T. Lewis
SÃO PAULO–Arezzo Indústria e Comércio’s shares fell 4.1% after the Brazilian clothing and accessories maker reported sales of shoes and handbags both declined by volume in the third quarter.
Shares reached 60.00 reais, the equivalent of $12.26, and were down 20% from the end of last year through Tuesday’s close. Brazil’s benchmark Ibovespa stocks index was up 0.2% in mid-morning trading.
Arezzo reported total sales increased 13% from a year earlier in the third quarter to BRL1.6 billion, but the number of pairs of shoes the company sold fell by 6.4% and the number of handbags sold declined by 6.6%. The number of items of clothing sold rose 1.7%.
Price increases were key to boosting sales in Brazilian real terms, given the decline in sales volumes for shoes and handbags, said Itaú BBA analysts in a research note. Sales volumes will be a factor to monitor going forward, they said.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
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