Good morning, and thank you for waiting. Welcome to Magazine Luiza's conference call to discuss the results of the second quarter of 2014. For your information, this event is being recorded, and all participants will be on listen-only mode during the company's presentation. After the presentation, we will initiate the Q&A session when further instructions will be provided. In case someone needs assistance during this call, please talk to the operator by pressing star zero. The replay of this event will be available after it is concluded for a period of one week. We would like to stress that any statement made during this call related to the business outlook of Magazine Luiza, projections, financial and operating goals, are based on beliefs and assumptions from the management of the company, as well as information currently available in the market.
Future considerations are no guarantee of performance because they involve risks, uncertainties, and assumptions, and therefore depend on circumstances that may or may not occur. Investors must understand that general economic conditions of the industry, and other operating factors may affect the future performance of Magazine Luiza and may lead to results that differ completely from those expressed in such future considerations. To start this conference call, I would like to give the floor to Mr. Marcelo Silva, CEO of the company, for his presentation. Marcelo Silva, you may have the floor.
Good morning, everyone, and thank you very much for participating in this conference call on the results related to the second quarter of 2014 and also the first half of 2014. I would like to begin by referring to the main highlights of Q2.
The number one highlight is the net revenue growth of 28.5% in Q2, which repeats the same performance we experienced in the first quarter of 2014. This growth comes from same-store sales growth of 24.5%. Also, e-commerce increased by 44.1%, and physical stores grew more than 21%, namely 21.3%. I would also like to mention the dilution of our expenses by 160 basis points in Q2, much lower than sales evolution, and two percentage points in the whole half of the year as a whole. This already considers additional efforts that we did because we were one of the sponsors of the World Cup at TV Globo. With that, we were able to grow EBITDA by 40.3% year-on-year, BRL 133 million in the last quarter, with an expansion of 50 basis points. EBITDA margin is now 5.7% as compared to 5.2% year-on-year. Luizacred is also another highlight.
We increased equity income by 79.9%, and that corresponds to BRL 18.1 million, the equivalent to 30% return on equity. Luizacred is reinstating its growth in the past few months. All in all, our net income increased by 130.6%, or BRL 26.6 million in Q2, with a net margin of 1.1%. I would also like to highlight the fact that in the second quarter of 2013, had an effect of BRL 43 million net of taxes, referring to the sale of 70% of one of the biggest DCs of the company in Lapa, São Paulo. This figure already considers the results of the second quarter of 2013 without that extraordinary gain that we had. Now, I would like to give the floor to Roberto Bellissimo to highlight the main figures for the company.
At the end, I will come back to comment on our expectations for the second half of the year and the results for 2014. Good morning, everyone. On page three, we have sales performance, gross revenue consolidated in the first half of the year. Our growth was above 26%, BRL 5.5 million in sales. This is already BRL 1.2 billion higher than experienced in the first half of last year. We also show same-store sales growth, as Marcelo already mentioned, based on last year's base, which was approximately 9%, around 9%, which is a significant base. It is a very significant growth based on some considerable figures. I also like to highlight the internet growth. We have been growing for two months, around 44%.
In the first and second quarters, internet sales already accounted for 16% of total sales of the company, which is higher than last year when this number was 14%, which just reinstates our strategy to grow e-commerce and our strategy to pursue multi-channels. We are a company in total sync with e-commerce. We are in sync, e-commerce and physical stores. On page four, we show gross profit figures. The growth in gross profits in the second quarter was 23%, which is a significant growth as well. The accounting gross margin was down 1.1 or 110 basis points. Basically, that was due to the mix, because in that quarter, we sold a lot of television sets, especially because of the World Cup. Within our expectations, we would have an effect of the mix.
The other effect comes from increases in tax replacement in that second quarter, because these two categories alone, they impact tax replacement, especially over total sales, if we compare it with other categories which lost their stake in this quarter. That margin increase, and that affected about 50 to 60 basis points. Now, if we compare gross profit over gross revenue, which eliminates the distortion, which is only an accounting distortion, whether taxes would go under the tax line or cost line, which is SG&A, the gross margin was down by just 50 basis points, and this was mainly due to the mix of the quarter, which was a bit unusual because of the World Cup. Next, I would like to talk about operating expenses. Our dilution of 150 basis points, especially in that line of sales expenses.
Equity income had a very important point here, which was Luizacred, which is very consistent because in the past two years, all of the quarters have been very consistent in terms of 30% return on equity. It is a very sustainable number. Equity income has been very good. Next page, we show you EBITDA figures. In that quarter, the margin was 5.7%. In the half year, 5.5%. The main drivers that led to EBITDA increase was expense dilution and also equity income that offsetted all of the effects of tax replacement and gross margin. Our EBITDA was able to grow approximately 40% during that quarter. Next slide. We talk about our financial results. Net financial expenses increased by 39%, very much in keeping with CDI rate, which grew a bit slightly above 40% during that period.
Another highlight, I mean, anticipations grew more than average because they suffer the impact from CDI and the increase in sales, because sales were up by almost 30%. Financial expenses, without considering credit card anticipations, are very much stable year-on-year, despite increases in CDI rate, which indicates improvement in the financial results as a whole. I would like to speak a little bit about working capital. In this quarter, we had increases in our working capital requirements. This increase was not due to inventories, but on contrary, we improved inventory turnover, and in June, the situation was quite normal and contrary to what was published, because some articles said that maybe companies would be with their inventory levels very high. We purchased what we wanted to purchase, and we sold whatever we planned to sell.
Our strategy impacted the suppliers account, that was a very acceptable strategy because we wanted to realize sales during the World Cup. What we did was to anticipate purchases that usually occur in May and June, but we anticipated these purchases during April and May. All payments that were to be done in the third quarter were done on the second quarter, which brought down our receivables from BRL 1.5 billion in March to BRL 1.2 billion in June, which indicates that payments in the third quarter will be much lower, and this will favor our operating cash flow from now on. The trend in the second quarter is to reduce our working capital requirement, because this is often what happens in this industry, considering the seasonality of sales. We also experienced a reduction in leverage from 2.1x EBITDA to 2x EBITDA.
That variation is directly related to variations in working capital. As working capital goes back to normal levels, the debt profile should also follow suit. I would just like to say that EBITDA in the last 12 months went from BRL 300 million a year ago to BRL 500 million today, this represents a 60% growth. This also helped to reduce leverage as a whole, this trend should also continue further down the road. The last highlight for the quarter on this page was the extension of the debt profile. Our first corporate rating was issued by Standard & Poor's, also I must refer to the reduction of leverage as another highlight. On page seven, we talk about net income. In this quarter, we have BRL 47 million. In the half of the year, BRL 27 million.
This is the equivalent of returns ROE of 15% on an annual basis. On page eight, I'm sorry, we talk about LuizaCred. The LuizaCred is going consistently. We experienced a 2-digit growth in gross billings. The highlight here is the Magazine Luiza card, which posted increases of 34%. This is a very good indicator showing that our clients are more active, and they are buying more at Magazine Luiza, which is a good sign of loyalty. Direct Credit to Consumer figures have decreased, this is also part of our very conservative policy in credit approvals. With that, overdue payments portfolio is very stable with the same outlook. With that, LuizaCred was able to grow revenue. The credit card has generated consistent revenues. We were able to dilute provisions. The provisions over total sales came down from 4.2%-3.5%.
Provision for bad debts decreased, that was in keeping with our very conservative credit approach. We were able to increase our profits by 80%, and returns again were kept around 30%. Now I'll turn the floor back to Marcelo to talk about the outlook. Roberto, thank you. Now, we'll refer to the outlook for 2014, particularly the second half of the year, where we expect to continue growing double digits, slightly lower than in the first half of the year, it's always good to mention that comparing the first half of 2014 and the first was better than the last half of 2013. Now, again, in the last half of 2013, we had a very robust position, but we are very confident that we will continue to grow double digits, but slightly lower than in the first half of the year.
Baú and Maia are the two chain of stores that we integrated, they're continuing to post good productivity. They are growing higher than the company's average. E-commerce is expected to grow between 25%-30% in the second half of this year. In terms of the margin, we hope to resume the levels of 28% because the category mix will go back to normal levels. We will no longer have the World Cup effect, as it was mentioned by Beto. We continue to pursue our projects to control pricing and the inventory. Also, we will certainly continue to improve the sales mix in the second half of the year. We will continue to dilute expenses. We've been increasing our service revenues gradually. Luizacred, the estimate is that for the second half of the year, the outlook for Luizacred is very positive in terms of results.
With all of that, we should also improve our EBITDA margins in the second half of 2014, going back to margins that we had in 2013. We had 5.2, now it's 5.7, we hope to continue improving the EBITDA margins and also the net income of the company. I would like to conclude by revisiting the history of the company and everything that we've been saying every quarter. Brazil grew 7.5% in 2010. 2010, 2011, for two years, we focused on the integration of all of the networks that we acquired, we were very successful. By the end of 2012, we had all 250 stores totally integrated in the company in all of the aspects. In 2013, we began to see positive results.
Due to our efficiency and the maturity level of the stores and everything else that we've been talking about to analysts and investors. Therefore, results for 2013 were much higher than those posted for 2012 and 2011. We hope to conclude 2014 with results even better than those that we had in 2013, even after the sale of RDC. The performance of 2014 will be much better and higher than that of 2013. The numbers are recurring numbers with no extraordinary expenses or anything else. We are very confident that with our positive outlook, the company is growing its results, it's growing sales, EBITDA margins are good and also net income. Therefore, we are very confident in our path of presenting positive and consistent results. We've been saying this every single quarter, this has been a reality since 2013 in a very consistent fashion.
I would like to thank you very much for being so patient as to listen to us. Now we will open the floor for questions. We have all of the officers of the company, Frederico, the CEO, Isabel, our manager of management and control, Beto, Marcelo Ferreira from Luizacred. All of the officers of the company are here at your disposal to answer all of the questions that you may have. Thank you very much. Now let's go to our Q&A.
Thank you. Now we will initiate our Q&A session only for investors and analysts. Questions that will come over the web will be answered later on through our email, and we will be available to take your questions. For questions, please press star one. Mr. Fabio Monteiro from BTG Pactual has a question. Good morning.
I would just like to learn more about your top-line growth, which was quite strong. Then in your release, you also talked about the performance of sales of TVs and smartphones, and we know that that really helped your final results, your top-line growth. When you look at the market and even by talking to some other companies and also Via Varejo, your performance was detached from the macroeconomic landscape. I just want to understand something. You have a break on same-store sales involving mature stores or maybe three or four years, or maybe you have a breakdown per region that will impact that growth line. I just want to have an idea about the Southeast and South, about your growth level for same-store sales.
Referring to July, regardless of just a particular number, you already said that you will have a low double-digit growth in the second half of the year. Can you tell me whether you felt any important decrease in growth when you compare the first half and the second half of July? Fabio, thank you for being the first one to ask a question, you always come with interesting questions. We do not refer to our breakdown figures to outsiders. We can say 42% growth of e-commerce. The Northeast grew more than the company's average. Referring to the old Lojas Maia stores, the Lojas do Baú stores are growing more than the company average. This is related to the consolidation and maturity of the stores. They were acquired in 2010 and 2011.
First we started with the integration in 2012. Now the stores, 250 stores, are becoming more mature and are already consolidated. There are a lot of peculiarities related to growth, that other 15% top-line growth refers to also other things. We are talking about purchasing planning, we believe that we did that well, as a consequence, sales were materialized. Our sales plan was materialized because of all the purchases. Our participation in the World Cup was very intense. We covered the entire country through MediaNet. Many municipalities in the country where we are not present posted sales. Our team is very well motivated, truth must be said that the team is very much in sync. They communicate all the time. Our online and offline base is in tune. This was also translated into sales. This happened in the first quarter.
In the second quarter, we sold a lot of television sets and also smartphones. These two items pushed things upwards because of the World Cup. These were probably the main factors. We could also talk more about it later on, but these are the two most important aspects. July, we could compare July of this year and July of the year before. We had a very good July. We already celebrated our target, and we grew an average of two digits, which was very important for us. It was important to have a very good start in this second half of the year. We just finalized the figures for July last night, that was a very positive thing. We are confident on the second half of the year because we want to continue to grow double digits.
As we approach the end of the year with the growth that you've seen in the previous quarters and also in the third and fourth quarters, the comparison base, it's difficult, I know that. Nonetheless, our expectation is that we believe that we will continue to grow two digits, maybe not very high, but we will continue to grow two digits. Frederico, would you like to add anything? Fabio, did I answer your question?
Yes. I just want to be sure that I understood when you talked about July. When you talked about average two digits, it's between 10-20? Above 20 would be too high. Low is 10. Above 20 will be high. 10 is low. But two digits? 10 is low, but I'm saying two digits. On average, get an average there.
We do not speak about monthly figures, but you're very close. Your reading is quite right. I don't think 10 is low. Let me disagree. We are talking about two digits. It's high, but two digits. It's the lowest two digits you could have, right? Yeah, that's what I mean. The last follow-up. Could you say that the maturity curve of the stores is more accelerated than the historical figures show? Or you think that TV sales and tax exemption for smartphone and tablets were elements that helped the figures? In our model, maybe should we consider a faster store maturity when compared to normal levels? In the Northeast, in 2010, 2011, 2012, 2013, three to four years is the average maturity time. Magazine Luiza has already acquired 13 networks. Even a new store has varying maturity levels. In a shopping mall, sometimes it's different.
It varies. Three to four years would be a good average in terms of store maturity. Allowing the store to go on cruise mode, it will just maintain its regular growth within the averages of the company.
Thank you, Marcelo, very much.
Mr. Marcelo Moraes from Deutsche Bank has the next question. Good morning. Congratulations for your results. Marcelo or Roberto, I would like to focus on Luizacred and looking at default levels. Have you experienced any, or have you seen any changes in behavior? Because the second quarter had a few changes. Did you see any changes in default levels, or are you still very comfortable in what concerns credit concession? What is your provisioning? Where do you think that the coverage ratio of the company will become more stable? Good morning, Marcelo.
Thinking about Luizacred, what I can say is that the provision level is just normal. It's been around 3.4, 3.5, that provision for loan losses in our portfolio. We've been noticing some stability. Some indicators show that there hasn't been any significant change or deterioration or nothing changed in our view for Luizacred as a whole. The last three quarters were very similar and very consistent. Therefore, we reviewed the budget for the end of the year, and we feel comfortable with the KPIs that we are presenting because we believe that they are sustainable, and they should evolve positively until the end of the year and also into the next year. I would just like to mention one thing. You noticed that we reduced the stake of CDC and increased credit card. Credit card is not so influential as direct credit to consumer, DCC, this is very positive.
Our credit card base has been stable, we've experienced a growth in the use of credit cards and credit card revenues, and all of that is positive to Luizacred because it shows that customers are more active. They are spending more. The base of credit cards is becoming more mature, and with a mature credit card base means that we will have more to gain. It will be more profitable. I think these are the main KPIs, the main indicators I can refer to when concerns short-term outlook for Luizacred.
Roberto, can you give me an idea on Without looking at delinquency levels, but looking at operating indicators of Luizacred, I think that you already have a few projects that are allowing for improvements in the profitable margins of Luizacred. Is there still any further room for continuous improvement of this result?
We start with revenues. The revenues are growing. Funding cost has increased, but Luizacred is offsetting that funding increase with a lower need for provisions and lower operating expenses. There are many projects underway, meaning improvements in the credit score models, credit concession models, collection models and processes. All in all, the delinquency trend now is stable. I think that the numbers will gradually improve as it has improved when you compare the figures year-on-year. When it comes to operating expenses, we've been doing a lot to maintain operating expenses more diluted. We want to dilute Luizacred's operating expenses. This started off last year with a project that we developed, an optimization process and also productivity increase. That project started last year. It's now in its phase 2 and it's moving along. That involves a lot of efforts to increase the efficiency of the operation.
Certainly, we can make further improvements, but if you compare the first quarter in operating expenses and compare that to the figures of the year before, there has been a significant improvement. Luizacred was also able to dilute operating expenses. Perfect. Thank you. Thank you, Roberto and Marcelo. Irma Sgarz from Goldman Sachs has the next question. Good afternoon. In fact, I would like to go back to Marcelo's point when he talked about coverage ratio and the level of provisions that go through Luizacred. I know that the portfolio grew by 8% and the delinquency indicator after 90 days, I think went from 10%-10.6%. At the same time, you reduced the provisions in your PLL for 6% year-on-year. The coverage ratio came down to 122%. We've seen this trend in the last quarters and more particularly in the last two quarters.
Looking ahead, I think, correct me if I'm wrong, please, it seems to me that this is not a very sustainable dynamics given the macro scenario. Also considering that delinquency has gone up year-on-year, you may have to grow your provisions, to increase your provisions because of your coverage ratio, because coverage ratio, it could go up. Just as this drop in the coverage ratio has helped the results of Luizacred in the last quarters, this can probably impact your results from now on. I just want to know how are you going to work out with this dynamics from now on?
Thank you for your question, Irma. I did not talk about coverage ratio with Marcelo before, this is a good opportunity to do so.
The coverage ratio in the last four or five quarters has been stable around 120%. If you go back in time, there was a point when it was higher than that because the CDC portfolio was increasing. We increased our provisions way back then because the CDC portfolio, Direct Credit to Consumer, was increasing. Usually that portfolio is more delinquent when compared to the credit cards. In the second quarter, this portfolio, CDC, is more stable, that's why I say that coverage ratio should go back to normal levels, that's what happened. Now it's around 120%. It's a coverage ratio. It's not a target of the company per se, it's a calculation. Provisions are done based on a model of possible losses of the company and we are very conservative, it also takes into account clients' credit score, loss expectations, et cetera.
There is a confusion in the minds of people sometimes when they compare our coverage ratio to that of the banks, meaning Itaú or Bradesco. I think now is a timely opportunity to talk about it. Credit portfolios similar to that of Luizacred, which has lower terms, et cetera. Our average term is five months. They tend to have a coverage ratio similar to ours. When you look at the coverage ratio of a bank of 170 or 180, it's because they give out a lot of loans to companies and large companies in particular. In this kind of business, you have to have provisions and credit has to be on time, the coverage ratio goes up. It's much higher because you have provisions for payments on time, not overdue.
That's why the coverage ratio of banks is much higher than that of Luizacred, but the level of 120% of Luizacred is very comfortable. Luizacred has more than BRL 80 million in provisions, additional to the minimum required by the Central Bank according to the Resolution 2682. We are very comfortable with our current level of provisions and also we are very comfortable with our provision level of the last quarters just to sustain the losses in the coming quarters.
Thank you. Now it's very clear, looking ahead, this dynamics of having some drop in provisions while the portfolio is growing, maybe this should not continue in the next quarters. Provisions that should go through Luizacred should be at least stable, or it should continue to grow with a slight increase in delinquency levels. Now the portfolio is very much stable between CDC and credit card, right?
Let me just help you understand how we calculate. This is Marcelo Ferreira here. First of all, Itaú makes all the calculations of this Direct Credit to Consumer and how do they do it? They take every credit concession and they look at the risk level of that loan and then they associate an amount according to the IFRS model and then they get all of the amounts to come up with another amount and the coverage ratio is that total divided by the NPL. The coverage ratio is not a target as Beto said. I'm looking at every single loan. Why is it that Provision for Loan Losses is coming down? As I look at all of the loans, the risk when compared to the year before is lower now. All loans, our loan policy is more conservative now.
In my portfolio I have less credit risk when compared to the year before. That's why you see a reduction in Provision for Loan Losses. The coverage ratio, if you look at it was 116, then 117, 118. In 2013 it was 126 in margin, now 122. It's very much stable. That's not the target. Certainly a lower coverage ratio maybe could raise a flag, but around this range it's very comfortable. What is this coverage ratio? If everyone is paying late, I am still very comfortable with this provision level. What I'm saying is that if delinquency goes up, well then, okay. What we are saying is that the quality of the loan portfolio here when compared to that of the market, is better. We will go up lower than the market.
If you compared our portfolio to previous years, our credit portfolio is much better now. Well, that's it.
Okay. Thank you. Victor Falzoni from Brasil Plural has the next question.
Good morning and thank you for taking my question. Can we have more visibility about the investments you did in the sponsorship for the World Cup and whether all of that investment has been already posted? How come you had such a strong reduction in the selling expenses and this was not reflected in the G&A? Could you elaborate more on that please? Frederico, you can answer that. Good afternoon, Victor. Here is Frederico, marketing and sales officer of the company. We had a fantastic half year in terms of sales.
We were able to grow our same store sales over 20%. Sales expenses include many elements and one of them is even the salary of the managers of the stores, the salaries of all of the support cashiers. Fixed and variable income or salaries of everyone involved and logistics expenses. With a 20% growth in same-store sales, even if the marketing expense was relatively stable when compared to the growth of revenue, all of the other expenses I mentioned were diluted. The rental of the stores was diluted. Also, expenses with the salaries of the cashiers, managers, and regional people, and also distribution expenses. All of these expenses were diluted due to the very strong growth in same-store sales and also other structural factors. One of them being the improvement in our Northeast operation, Baú stores and all. This helped us to reduce our selling expenses.
Admin expenses, as you see in that release, also has the effect of provisions for loan losses, and we didn't have that in the past.
Okay. Thank you. Luiza from Votorantim Corretora has the next question.
Good afternoon, and thank you for taking my question. I would like to look at the inventory levels of your retail operations. You already said that your inventory levels are well-adjusted, but can you tell me a little bit about the competition? With that, I mean whether you see a stronger competitive environment, especially also because of gains from not very strong competitors, or whether you see that in the short run, things may be a bit more complicated. My second question is about furniture. How do you see the behavior of the end user vis-a-vis that category in the second half of the year?
This consumer is a bit more conservative when it comes to their purchases, whether you can anticipate any problems coming from that segment. Good afternoon. Here is Fabrício. In terms of our inventories, as Beto said, our inventory levels are quite normal and within the plan for the second half. It's difficult to say anything about the inventory levels of the company. As we noticed from the last month of June, we did not see any price deterioration at the other end. There hasn't been any sales or furniture or white lines or anything like that. Prices are absolutely normal. In terms of furniture, this is a category that lost some momentum in the first half of the year. In the first half, it was only on the side.
I think that in the second half of the year, we will grow, maybe not at a two-digit level, but we hope to grow between 5%-7%. This is the expected growth for this category. We hope it will perform better because we do not have the effect that we had in the first half. This is what we believe it will happen. Thank you. One more question, if you allow me. Looking at the performance of the stores during the first and second quarters, do you think that you would close some other stores that are underperforming now that the World Cup season is over? I'm sure that you took advantage of that momentum and kept some of the stores open. My question is whether you will close any other stores. We have 744 stores. This is our number.
This is a very dynamic number. We will still open several more stores this year. We constantly evaluate the stores and assess their performance. There is no major trend in terms of closing stores. The growth of same-store sales in the first half of the year made some of the stores that were not performing well, and that they are now over-performing. Maybe they're not experiencing the same growth level, but they went from non-performing to over-performing. We never close stores before Christmas or the holidays. Maybe we do not expect to close any particular store. Maybe some will be closed by other reasons like rental, but we do not anticipate the closing of any set of stores. That's not in our radar.
There is a very strong trend towards an increase in the number of stores in the second half of the year because we will open many new stores. I would just like to add that we inaugurated two stores this half-year, and we will inaugurate 20 additional stores in the second half. It's been mentioned both by us and Via Varejo, that we are still awaiting for the approval from CADE to open more stores between 30 to 40. This is the average that we can anticipate. It depends on these 15. They are still under review. 30 is the average. Stores and shopping malls, et cetera. I'd just like to say that we are still investing strongly in IT, logistics, infrastructure, in our innovation lab. Our investment plan is moving full force. The company continues to grow same stores, and we are also growing new stores.
The emphasis and the focus is in the Northeast of Brazil because that region is growing above the country's average. We have already refurbished almost all Maia stores, and we are inaugurating new stores in the Northeast region. We had two closing of stores. 15 the first time. Those were the Baú stores. We closed them because we couldn't continue operating them. We gave some other 10 another year. We closed early on in the year. We have our fantastic sale. We closed the stores in the beginning of the new year. We are constantly promoting constant evaluations and assessments of the stores. If we see that a store does not show future growth, then we consider closing.
In the near future, we will not close any significant number of stores, maybe one or two, if that is the case, and if we arrive to the conclusion that it's not worth keeping it, or sometimes it's because the location is not good. Our investment plan is still normal and is in keeping with the budget for 2014. Thank you.
As there are no further questions, I would like to give the floor to Mr. Marcelo Silva for his final remarks.
Thank you all very much for attending this call. We are very pleased with the results of this first half of the year. The figures are very consistent, and our growth has been consistent and gradual throughout the quarters. We are very confident that we will arrive at the end of the year with many good results.
For the second half of the year, we will also deliver good results. We started off well with the month of July. We are above the target. We grew an average two digits, and all of the management of the company is very confident with the results of the company for the end of the year. I hope to see you again and to discuss the results for the third quarter of 2014. The comparison also always occurs based on the previous quarters and the quarter year-on-year. Beto already said that we have BRL 1.2 billion in sales this quarter, which is much higher when compared to the same figures of the year before. Thank you very much. I hope to see you in our next call. Thank you very much. The conference call for Q2 2014 of Magazine Luiza is now concluded. Have a good day.
Thank you.