In the first quarter of 2005, gross revenue totaled R$ 814.9 million, against R$ 572.9 million in the same period of the previous year, representing growth of 42.2%, comparing the quarters. It is worthy of note that, when comparing the quarters, due to the timing of the Easter campaign, special attention is required.

In the “same store sales” concept, that is, excluding new stores inaugurated less than a year ago and not including Americanas.com, the first quarter growth was 17.9% in relation to the same period of the previous year.

In the first quarter of 2005, Revenue per Associate increased by 30.0% compared with the same period of the previous year.

The table below shows the breakdown of sales by form of payment in the first quarter of this year and in the same period of 2004:

In the first quarter of 2005, the Company’s gross margin was 29.3% of net revenue (NR), against 31.2% of NR for the same period of the previous year. This drop of 1.9 percent was due to the fact that, in 2005, the Easter campaign took place entirely in the month of March, causing this effect on the gross margin for the first quarter of the year.

Sales Expenses

In the first quarter of 2005, sales expense amounted to R$ 99.3 million, or 16.0% of net revenue (NR), compared with R$ 82.8 million, or 18.1% of NR, in the same period of 2004, a drop of 2.1 p.p. comparing the quarters. It should be noted that the Company continues to focus on the search for ways of increasing productivity and reducing expenses.

General and Administrative Expenses

In the first quarter of 2005, general and administrative expenses totaled R$ 16.1 million, or 2.6% of NR, resulting in a reduction of 0.1 p.p. in relation to the same period of the previous year.

In the first quarter of 2005, operating income before financial income (expense) and equity accounting, showed growth of 44.4%, totaling R$ 51.7 million, against R$ 35.8 million in the same period of 2004. This improvement in the operating performance reflected the search for the best ways of maximizing the value of Lojas Americanas and its subsidiaries.

It is worthy of note that this is the twelfth consecutive quarter in which the EBITDA margin has been maintained at over 8.0% of net revenue (NR). In the first quarter, the EBITDA margin reached 10.7% of NR, or 0.3 p.p. higher than the 10.4% of NR recorded in the same quarter of last year. This represents growth of 39.5% in first quarter operating cash generation for this year in relation to the same period of 2004.

The net financial expense for the first quarter of 2005 was R$ 34.8 million, compared with R$ 27.8 million in the same period of 2004.

The negative variation of R$ 7 million in the consolidated financial result for the first quarter of this year in relation to the same quarter of the previous year was caused by the increase in taxes and contributions on financial operations, an increase in the expense of loan interest and restatement of tax liabilities. The legality of these charges is being challenged in the courts.

The Company continues to maintain its commitment to the conservative cash investment policy, by taking a hedge position in U.S. dollars to protect it against exchange variations, for both its financial liabilities and its total cash position.

The net income for the first quarter of this year was R$ 10.8 million, compared with R$ 5.0 million in the same period of the previous year, representing growth of 116.0%.

Suppliers / Inventories

The suppliers’ account, in the consolidated balance sheet as of March 31, 2005, stood at R$491.4 million compared with the total of R$ 444.1 million in the inventory account on the same date, representing a positive financing of inventories of R$ 47.3 million.

Indebtedness

Lojas Americanas’ consolidated short and long-term borrowing, as of March 31, 2005, amounted to R$ 941.2 million. Subtracting the total of these loans from the Company’s cash position (cash + investments + credit card accounts receivable), we arrive at a net indebtedness of R$ 67.3 million.