SAO PAULO, Nov 10 (Reuters) – Brazilian retailer Magazine Luiza SA (MGLU3.SA) reported an adjusted net loss of 146 million reais ($27.4 million) on Thursday, the company’s fourth consecutive quarterly loss as its bottom line suffered from rising interest rates.

The company posted an adjusted net profit of 22.6 million reais in the prior year period.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 50.3% year-on-year to reach 527.5 million reais.

Luiza magazine recorded sales growth of 2% to 14.15 billion reais. E-commerce sales increased by 3% between July and September to reach 10 billion reais.

The retailer sells consumer goods in physical and online stores, including appliances, electronics, furniture, cosmetics, toys and sporting goods; and offers insurance and other financial services.

In its quarterly earnings report, it said it had weathered the lingering effects of the pandemic and other macro challenges, particularly Brazil’s 13.75% benchmark interest rate, the result of aggressive monetary tightening. aimed at curbing inflation.

“During this turbulent period, the company’s market share in the online (industry) grew by 3.2 percentage points,” the company said in a statement.

To help mitigate the impact of high interest rates, the retailer reduced the number of installments for payments and expanded the use of a payment system that reduces associated finance costs, among other measures, said Vanessa Rossini, the company’s head of investors.

($1 = 5.3356 reais)

Report by André Romani; Written by Carolina Pulice; Editing by Anthony Esposito and Richard Chang

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