Growth Prospects for Magazine Luiza
Magazine Luiza has been growing around 20% and 30% in the last 10 years and entering the stock market contributed to the expansion and liquidity.
Magazine Luiza has been growing around 20% and 30% in the last 10 years and entering the stock market contributed to the expansion and liquidity. The fundamentals are excellent, only 4% of Brazilians have a LCD TV, over 70% of them do not have quality furniture, and the majority of our population is now thinking of owning a house.
Magazine Luiza purchased a chain of 140 stores in the Northeast of Brazil, a region dubbed ‘Brazilian China’, due to its huge potential for growth. It doubled our revenue after buying Lojas Maia, a chain store with over 50 years of existence.
Furthermore, the new middle-class is made up of 40 million Brazilians that have just entered the economic statistics. There will be another $15 billion in investments in the economy over the next few years, resulting in about 104 million people becoming part of the new middle-class. Growing middle class means very solid growth prospects for Magazine Luiza.