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C&A Modas (CEAB3) investor relations material

C&A Modas Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary5 Nov, 2025

Executive summary

  • Apparel net revenue grew 8.9% year-over-year, with same-store sales up 8.1% and merchandise gross margin expanding by 1.9 percentage points to 54.6%.

  • Beauty category net revenue surged 50.9% year-over-year, while electronics revenue declined due to the phase-out of telephony and smartphone divestment.

  • Adjusted net income rose 41.7% to BRL 73.6 million, with margin expansion of 1.1 percentage points.

  • Free cash flow reached nearly BRL 243 million, with a 9-day improvement in the cash conversion cycle and net debt-to-EBITDA ratio reduced to 0.1x.

  • ROIC reached 21.7% for the quarter, reflecting strong operational execution.

Financial highlights

  • Merchandise gross margin improved by 1.9 percentage points year-over-year, with apparel gross margin up 0.3 percentage points.

  • Adjusted retail EBITDA margin (pre-IFRS 16) was 10.9%, up 0.9 percentage points year-over-year.

  • Net debt/EBITDA dropped to 0.1x, with net debt down 89.6% and cash position near BRL 1 billion.

  • Capex reached BRL 146 million, up nearly 80% year-over-year, mainly for store renovations, logistics, and Energia projects.

  • Consolidated net revenue reached R$1,840.9 million, up 2.3% year-over-year.

Outlook and guidance

  • Q4 is expected to benefit from fresh inventories and agile assortment, with optimism for year-end sales despite macroeconomic uncertainties.

  • Continued rollout of the Energia store model, with initial results exceeding expectations and two more stores underway.

  • Ongoing investments in technology, logistics, and store renovations, with 81.7% of CAPEX allocated to Energia initiatives.

  • Focus on dynamic assortment, CRM, and AI-powered features for digital channels in 2025.

  • No specific guidance provided, but management remains positive about continued growth in beauty and omni-channel initiatives.

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