Shares of Brazilian footwear and accessories maker Arezzo Industria e Comercio rose by 3.2% following a positive report from Citi Research analysts. The analysts predict that the company will experience strong sales growth in the third quarter.
The shares are currently valued at 60.04 reais ($12.33), which represents a decrease of 26% compared to the end of last year. In contrast, Brazil’s benchmark Ibovespa stocks index increased by 0.5% in mid-morning trading.
Arezzo Industria e Comercio is set to release its earnings report on Tuesday after the market closes. According to Citi analysts João Pedro Soares and Felipe Reboredo, the company’s AR&CO brand is experiencing robust growth, while its core Arezzo brand remains resilient.
Additionally, the company is expected to benefit from streamlining its non-core brands and implementing other efficiency measures. As a result of a decision made in the first quarter to finance suppliers, the company’s working capital is expected to normalize in the second half of this year. This could lead to better-than-expected cash conversion in the third quarter.