Guararapes Confecções (RIAA3) investor relations material

Executive summary

• 3Q26 adjusted consolidated EBITDA reached a third-quarter record of R$405.4 million, up 7.9% YoY; net income rose 61.3% to R$84.9 million.

• Apparel SSS grew 6.5% for a 13th consecutive quarter, and apparel gross margin reached a third-quarter record of 58.1%.

Financial highlights

• Consolidated net revenue was R$2.506 billion in Q3, up 3.5% YoY; 9M revenue was R$7.520 billion, up 4.4%.

• Q3 adjusted EBITDA margin expanded 0.7 p.p. to 16.2%; 9M adjusted EBITDA rose 11.2% to R$1.134 billion.

• Q3 net margin increased 1.2 p.p. to 3.4%; 9M net income was R$257.8 million, up 98.3%, and LTM net income reached a third-quarter record of R$560 million.

• Q3 consolidated gross profit increased 11.0% to R$1.627 billion; gross margin expanded 4.4 p.p. to 64.9%.

Outlook and guidance

• Priorities include brand revitalization, customer experience, store modernization, apparel margin expansion, e-commerce, technology and AI, supply-chain efficiency, and higher capital returns.

• Plans call for ~15 store openings in 2027; renovation activity depends on current-program results.

• Distribution-center automation benefits are expected from late 2027, mostly in 2028; another 30%-40% of investment is expected next year.

• Midway credit growth will remain cautious, with no portfolio ramp-up planned and focus on extracting more revenue from the existing portfolio.