The recent months have been brutal for Brazilian retailers on the São Paulo stock exchange. Double-digit inflation, continuously increasing interest rates, and high indebtment levels curbed consumption and eroded share prices.
Magazine Luiza, a local behemoth, is perhaps the most glaring example, with a 92 percent slump between November 2020 — when Covid restrictions and stimulus programs boosted e-commerce — and July 1, 2022.
But Magazine Luiza has seen its share prices go up by 25 percent since, in a movement that was also observed amongst its competitors. Over the month of July, the Icon B3 index —...
