Guararapes Confecções (GUAR3) investor relations material

Executive summary

• Achieved record net income of BRL 143 million in 2Q25, up 151.2% year-over-year, with consolidated EBITDA reaching BRL 436 million, a 21.1% increase from 2Q24.

• Best second quarter in company history, driven by strong same store sales in apparel and margin expansion.

• Transformation initiatives included a new CEO, strategic priorities, and creation of new business boards, driving efficiency and growth.

• Focused on sustainable fashion, technology investments, and employment generation, reinforcing market leadership.

• Double-digit same store sales growth for four consecutive quarters, with apparel leading at 15.8% and Southeast region exceeding 17%.

Financial highlights

• Retail net revenue reached nearly BRL 2 billion, up 14.2% year-over-year.

• Consolidated net revenue rose 13.9% to BRL 2.6 billion in 2Q25; gross profit increased 17.4% to BRL 1.6 billion, with gross margin up 1.9 p.p. to 60.8%.

• Retail same store sales up 12.9%, apparel same store sales up 15.8% year-over-year.

• Consolidated EBITDA up 21.1% year-over-year to BRL 436 million; retail EBITDA margin at 15.2%.

• Free cash flow of BRL 145 million in Q2, compared to BRL 137 million in the prior year.

Outlook and guidance

• Optimistic for the second half of the year, expecting continued growth in apparel and margins.

• Strategic pillars for 2025 focus on experience, efficiency, and return on capital, with accelerated investments in fashion and technology.

• Continued investment in technology, store expansion, and sustainable fashion initiatives.

• Management confident in capturing further value through experience, efficiency, and return on capital.

• No specific guidance on value generation per square meter, but expects further improvement driven by financial services and fashion.