From woman to woman, Marisa (AMAR3). As much as it has a memorable advertisement, the performance of the women’s fashion store on the Stock Exchange is far from being so impressive. But going against the pessimistic record, the company’s shares rose 55% in a single month. With this change of apparel, is it the right time to buy AMAR3?
Since we’re talking about your money, it’s worth taking a little longer in this fitting room. First, let’s specify this period of appreciation: in the period from July 4th to August 5th, the shares of the fashion company rose 52.69%.
If you follow, even minimally, the recent scenario of retailers on the Stock Exchange, you know that this number is somewhat curious. Even more if we take into account that the shares managed to rise even more in the last few days:
Along with Marisa, shares of other retailers that were going from bad to worse on the Stock Exchange, such as Magazine Luiza and Via Varejo, also followed the 60% increase in value.
As Marisa shares are the cheapest of the three retailers, carefully watching this curious move can become even more profitable in this case. But looking at the company’s history on the stock exchange, the red lines continue to stand out.
Would this be an explosive recovery of AMAR3 on the stock exchange or a simple respite until the rise in interest rates eats back its shares?
Marisa (AMAR3) and her return to the Stock Exchange
Unlike Magazine Luiza’s shares (MGL3), Marisa’s shares have never been a major highlight on the Stock Exchange.
While MGL3 accumulated 91,304.84% profit between 2015 and 2020, Marisa’s shares didn’t even come close to the other retailer.
In fact, instead of being hidden, it earned a bad title for investors: the worst stock to invest among all clothing retailers listed on the stock exchange, according to a comparative analysis carried out with data from Bloomberg and Vitreo.
Founded in 1948, Marisa was born as a clothing store aimed at the C class. With a large consumer base, the store expanded to most regions of Brazil in less than 10 years.
Marisa was also the first Brazilian retailer to develop an e-commerce system, back in 1999. In the IPO at B3, more than 500 million reais were raised, which contributed to the “golden age” of the company and for its second expansion phase.
But it was between 2013 and 2017 that the situation began to ‘fade’. The poor financial performance in the period caused the shares to fall more than 80%, triggering the closing of stores and the distrust of investors.
After years of bad results, a restructuring was more than necessary. The plan started in 2018, in a format of turnaround, that is, the total restructuring of the company. E-commerce, physical stores, products and even a new board of directors: the turnaround reformulated several aspects of brand positioning.
However, the pandemic significantly impacted the restructuring plan, including the closing of all stores in the country in March 2020. This was one of the company’s worst years in terms of operational indicators.
Studying this complex context of rebranding can help to understand the recent boom in the retailer’s actions. The question is: how solid is this process that Marisa has structured for years? Can “cleaning the house” sustain its actions or is it just another retail promise?
The animation can be tempting, but we need to remember the store’s history. Within this sector, the numbers can be impressive, but there is little care.
Sergio Oba is an analyst at one of the largest brokerages in Brazil, Vitreo. One of his reports was famous for predicting the turnaround in Marisa’s actions.
Today, those who followed his AMAR3 recommendation, published in the report “AMAR3: a well-oiled operation and a stock too attractive to ignore” published on 7/14/2022, profited from an extremely cheap stock.
In an unprecedented reportOba makes a new recommendation about the retailer, which is starting to get closer to the C class and to outline new directions for its turnaround.
Sergio Oba opens free report on Marisa’s “new phase” at B3
While the store’s recovery in the face of such a challenging scenario for the sector is encouraging, there are many other factors to be evaluated.
In addition to detailing the entire company’s restructuring operation to reinforce its points, Sergio Oba also presents these decisive factors for stock exchange investors. In a new free report, the analyst unravels why this action cannot, by any means, be ignored.
Clicking on this link and leaving only an email, you will receive in a few minutes a comprehensive analysis of the action.
As soon as you enter the material, you will already have the analyst’s recommendation. Vitreo knows that for investors who are truly concerned about their finances, one line is not enough. Therefore, it is making this material available completely for free to you.