(Updates with closing prices in second paragraph.)
Oct. 17 (Bloomberg) -- Cia. Hering, Brazil’s second-biggest clothing retailer, rose to its highest price in two weeks after reporting a 35 percent increase in third-quarter sales and bigger expansion plans.
Shares rose 2.4 percent to 32.60 reais at the close of trading, the highest since Sept. 29. The benchmark Bovespa index declined 2 percent.
“The consistent outperformance of Hering’s business and the upward revision of its expansion plan leave us comfortable with our forecasts and even opens some room for an upward revision,” Itau Corretora de Valores SA analysts Juliana Rozenbaum and Francine Martins wrote in a note to clients today. Itau has a 12-month share price estimate of 42.70 reais.
Hering increased to 86 from 71 the number of stores it plans to open in Brazil this year, according to a regulatory filing Oct. 14.
The retailer also reported a 9 percent increase in its third-quarter same-store sales, trailing a 12 percent jump forecast by Itau. The growth in total sales “more than compensated for the weaker-than-expected” same-store figures, according to Rozenbaum and Martins.
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