The company reported gross revenues of R$431.1 million for 3Q14, a 0.9% decrease from the previous year. EBITDA was R$74.7 million, down 9.4% due to higher expenses and a decline in gross margin from promotional activities. Net income increased 21.7% to R$70.9 million due to a tax benefit. The outlook expects challenges to organic store expansion due to high occupancy costs and a focus on profitability, which may result in fewer openings in 2015. A new e-commerce platform will launch in October and all brands will migrate to the new platform in 2015.

1. 1
3Q14 Results
Conference Call
October 23rd, 2014

2. 3Q14
2
AGENDA
3Q14 Results
Outlook
Q&A

3. 3Q14
3
GROSS REVENUES AND BREAKDOWN BY BRAND
R$ MILLION
GROSS REVENUES BREAKDOWN PER CHANNEL
DOMESTIC MARKET EX-OTHERS REVENUES
3Q14 IN R$ MILLION, CHANGE 3Q14 x 3Q13
Gross revenues of R$ 431.1 million (-0.9%)lead by weaker performance in most of the brands and channels. Highlight to online sales, +20%.
3Q13
3Q14
Change
435.0
431.1
-0.9%
309.8
308.2
-0.5%
46.1
49.8
+8.0%
38.4
36.4
-5.3%
24.9
22.4
-10.0%
7.9
8.3
+5.6%
International
Market

4. 3Q14
4
HERING STORE NETWORK
GROSS SALES SELL-OUT, R$ MILLION
Gross revenues of R$ 329.3 million (+0.5%), still afflicted by World Cup effects (first days of July). Sales trend improved after the event.
¹ Storesopenedin thelasttwelvemonthsnet fromclosings
Temporaryreductionin thepricesofthebasicsline, AutumnandWinter collectionsitemslasteduptoearlyAugust.
Introductionofthenew basicsandinnovationsalongwithSummer Collection(mid-August).

5. 3Q14
5
GROSS PROFIT
R$ MILLION AND GROSS MARGIN
EBITDA
R$ MILLION AND EBITDA MARGIN
EBITDA of R$ 74.7 million (-9.4%) due to higher expenses from new corporate structures and gross margin decline due to higher promotional activities.

6. 3Q14
6
NET INCOME
R$ MILLION AND NET MARGIN
CAPEX
R$ MILLION
Net income ofR$ 70.9 million (+21.7%) due to fiscal benefit of R$ 21.2 million in income taxes.
Investments for the year concentrated in IT : e-commerce and ERP roll-out are the main projects.

7. 3Q14
7
CASH FLOWS
R$ MILLION
R$ 64.4 million cash flow in the quarter,lead by lower working capital (specially inventories).
Dividends of R$ 50.0 million announced in the quarter (R$0.3037 per share). 3Q133Q14Chg.9M139M14Chg. EBITDA82.5 74.7 (7.7) 301.3 266.1 (35.2) Non-cash items3.3 1.3 (2.0) 10.0 14.0 4.0 Current Income tax and Social Contribution (19.1) (1.7) 17.4 (81.9) (51.5) 30.4 Working Capital Capex(8.7) 16.2 24.9 (26.8) 12.3 39.1 Decrease in trade accounts receivable62.0 61.8 (0.2) 52.1 92.0 39.9 (Increase) in inventories(83.6) (56.8) 26.8 (93.5) (50.1) 43.4 Increase in accounts payable to suppliers21.7 33.7 12.0 16.9 29.1 12.2 (Decrease) in taxes payable(5.0) (17.0) (12.0) (17.3) (56.1) (38.8) Others(3.8) (5.5) (1.7) 15.1 (2.6) (17.7) CapEx(25.4) (26.0) (0.6) (50.5) (59.4) (8.9) Free Cash Flow32.6 64.4 31.9 152.1 181.5 29.4

8. 3Q14
8
AGENDA
3Q14 Results
Outlook
Q&A

9. 3Q14
9
OUTLOOK
Hering’s new development/assortment in place. New communication coming in...
Innovation, also for basics, started flowing into the stores in August.
New campaign launch in October to support High Summer Collection (through December). It’s illustrated this presentation.
E-commerce evolution
Hering’s webstorewill be relauchedin a new platform in October, with new features and improved buying experience.
All brands will be migrated in 2015 and additional tools will be added.
Stores
Challenging scenario for organic expansion, specially on occupancy cost.
Focus on profitability may be translated into fewer openings in 2015.
50
2014 Store opening prediction
23
75
dzarm.’s framework set and ready for its relaunchby Autumn’15
New brand positioning and distribution. Details to follow…
2
Grand Total

10. 3Q14
10
OUTLOOK
Hering for you: Launch of the first store
Opened in October in Shopping Morumbi mall, in São Paulo. Next store at Center Norte mall (SP) in 4Q14.
Cornerstone to its growth strategy. Communicates brand’s value proposition to consumers.
StoreatShopping Morumbi. Actualpictures.

11. 3Q14
11
AGENDA
3Q14 Results
Outlook
Q&A

12. 3Q14
12
DISCLAIMER
This presentation contains forward- looking statements regarding the prospects of the business, estimates for operating and financial results, and those regarding Cia. Hering's growth prospects. These are merely projections and, as such, are based exclusively on the expectations of Cia. Hering management concerning the future of the business and its continued access to capital to fund the Company’s business Plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Cia. Hering’s filed disclosure documents and are, therefore, subject to change without prior notice.

13. 3Q14
13
INVESTOR RELATIONS TEAM
Fabio Hering –CEO
Frederico Oldani–CFO andIRO
Bruno Salem Brasil –IR Manager
www.ciahering.com.br/ir
+55 (11) 3371 -4867
ri@hering.com.br