According to the bank’s recent note to clients, the holiday season in Brazil was disappointing for many retail companies:

“Weak overall in Brazil, with few exceptions. The 4Q11 earnings season is likely to mark the trough in consumer spending, which, combined with a very high comps basis (strong 4Q10 holiday season), brought down the pace of sales growth in the quarter. For many of the consumption-linked companies, the holiday shopping season can save the year’s results, but in 2011 this wasn’t the case. Most of the companies showed sequential growth deceleration, as well as erosion of profitability. In general, bottom-line expansion will be the exception.”

But according to the report, some companies like Arezzo and RaiaDrogasil did not show material deceleration in sales. Among the most hurt, it cites Arcos Dorados, Marisa and Guararapes. 
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