Marisa S.A.'s turnaround: Strategic initiatives drive Q4 2024 profit
Storefront Credits: courtesy Marisa São Paulo - Marisa S.A., a major Brazilian fashion and lingerie retailer, offering apparel for women, men, and children both in physical stores and online, announced its fourth quarter 2024 results to the market on March 31s, reversing a 112 million Brazilian Real loss from the same period in 2023 to a net income of 5.8 million Brazilian Real (1 million dollars). In its management report, the company highlighted the challenges faced throughout 2024, which prompted strategic changes resulting in significant growth in both financial performance and operational efficiency. The restructuring brought a return to profitability with an Adjusted Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of 120.2 million Brazilian Real, representing a 175.5 million increase compared to the negative EBITDA from the same period in 2023. After 12 quarters, the company reported not only profit but also a reduction in net debt, which ended 2024 at 29.7 million Brazilian Real. Credits: Courtesy Marisa Strategic initiatives The reported figures are the result of several initiatives. including the redefinition of the target audience, focusing on working-class women, who found products at Marisa with prices aligned with their purchasing power. Credit through the Marisa card was a significant factor. Further initiatives included a bebt renegotiation with suppliers, settling outstanding balances, and normalising store inventory, which was replenished with increased supply volume; and an expansion of the product portfolio, with greater emphasis on children's and men's wear, with sales expanding in the second half of the year, building loyalty among women who find products for the whole family at Marisa. Further programmes involved the resumption of marketing campaigns, especially during key holiday periods (Father's Day, Children's Day, Black Friday, and Christmas), increasing sales and engaging the public; a new planning and supply model improved the logistics chain, ensuring more timely replenishment; and an omnichannel strategy that streamlined purchases and fostered customer loyalty. Credits: courtesy Marisa Partnership with financial institution and shareholder investments Marisa which also provides financial services through Mbank, including the Marisa Card, increased available credit through the Marisa Card, in partnership with credit system companies, contributing to customer retention. The company received a 622 million Brazilian Real investment from shareholders, strengthening working capital for settling debts with suppliers and implementing strategies such as a new store layout and product mix. Internal initiatives implementing inclusive practices, diversity, and sustainable management were decisive. The arrival of new CEO Edson Garcia and CFO Adilvo de Souza Jr. brought, according to the statement, their extensive expertise in retail and financial management. Marisa closed 2024 with 234 stores and plans to reach 243 units by the end of 2025. In 2024, the average transaction value was 130.60 Brazilian Real (23 dollars), and the average Marisa Card transaction value was 206.41 Brazilian Real. 40.6 million units were sold during the year. In summaryMarisa reversed its 2023 losses, reporting net income in the last quarter of 2024.The company implemented several strategic initiatives, including redefining its target audience and renegotiating debts.The partnership with a financial institution, shareholder investments, and the arrival of new leaders were decisive for the positive results. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
São Paulo - Marisa S.A., a major Brazilian fashion and lingerie retailer, offering apparel for women, men, and children both in physical stores and online, announced its fourth quarter 2024 results to the market on March 31s, reversing a 112 million Brazilian Real loss from the same period in 2023 to a net income of 5.8 million Brazilian Real (1 million dollars).
In its management report, the company highlighted the challenges faced throughout 2024, which prompted strategic changes resulting in significant growth in both financial performance and operational efficiency.
The restructuring brought a return to profitability with an Adjusted Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of 120.2 million Brazilian Real, representing a 175.5 million increase compared to the negative EBITDA from the same period in 2023.
After 12 quarters, the company reported not only profit but also a reduction in net debt, which ended 2024 at 29.7 million Brazilian Real.
Strategic initiatives
The reported figures are the result of several initiatives. including the redefinition of the target audience, focusing on working-class women, who found products at Marisa with prices aligned with their purchasing power. Credit through the Marisa card was a significant factor.
Further initiatives included a bebt renegotiation with suppliers, settling outstanding balances, and normalising store inventory, which was replenished with increased supply volume; and an expansion of the product portfolio, with greater emphasis on children's and men's wear, with sales expanding in the second half of the year, building loyalty among women who find products for the whole family at Marisa.
Further programmes involved the resumption of marketing campaigns, especially during key holiday periods (Father's Day, Children's Day, Black Friday, and Christmas), increasing sales and engaging the public; a new planning and supply model improved the logistics chain, ensuring more timely replenishment; and an omnichannel strategy that streamlined purchases and fostered customer loyalty.
Partnership with financial institution and shareholder investments
Marisa which also provides financial services through Mbank, including the Marisa Card, increased available credit through the Marisa Card, in partnership with credit system companies, contributing to customer retention.
The company received a 622 million Brazilian Real investment from shareholders, strengthening working capital for settling debts with suppliers and implementing strategies such as a new store layout and product mix.
Internal initiatives implementing inclusive practices, diversity, and sustainable management were decisive. The arrival of new CEO Edson Garcia and CFO Adilvo de Souza Jr. brought, according to the statement, their extensive expertise in retail and financial management.
Marisa closed 2024 with 234 stores and plans to reach 243 units by the end of 2025. In 2024, the average transaction value was 130.60 Brazilian Real (23 dollars), and the average Marisa Card transaction value was 206.41 Brazilian Real. 40.6 million units were sold during the year.
- Marisa reversed its 2023 losses, reporting net income in the last quarter of 2024.
- The company implemented several strategic initiatives, including redefining its target audience and renegotiating debts.
- The partnership with a financial institution, shareholder investments, and the arrival of new leaders were decisive for the positive results.
This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
