Lojas Quero-Quero (LJQQ3) investor relations material

Executive summary

• Gross revenue grew 3.3% year-over-year to R$790.2 million in Q1 2026, driven by financial services and credit card segments, while retail sales declined 0.8% due to a high comparison base and weaker demand for seasonal products.

• Net loss widened to R$61.7 million from R$31.1 million in Q1 2025, with adjusted net loss at R$35.5 million, impacted by higher financial expenses and lower margins.

• Two new stores were opened and 14 closed, ending the quarter with 574 stores in 493 cities, a 0.3% reduction in store base.

• Digital and phygital initiatives contributed 23% of total sales, reflecting ongoing digital integration.

• Focused on strategic pillars: market share, credit excellence, operational efficiency, digital sales, and high-performance culture.

Financial highlights

• Net operating revenue increased 3.7% year-over-year to R$696.4 million.

• Gross profit fell 4.7% to R$211.5 million, with gross margin over net revenue dropping to 30.4% from 33.1%.

• Adjusted EBITDA plummeted 95.4% year-over-year to R$0.6 million, with margin at 0.1%.

• Net loss margin was -8.9% (vs. -4.6% in Q1 2025); adjusted net loss was R$35.5 million.

• Financial services revenue increased 12.8% to R$233.8 million; credit card revenue up 13.1%.

Outlook and guidance

• Management expects gradual interest rate reductions, expanded tax exemptions, and favorable agricultural conditions to support recovery.

• Guidance for fewer new store openings in 2026, with CapEx halved year-over-year to preserve cash flow.

• Focus remains on operational discipline, portfolio quality, and capital efficiency.

• Conservative credit policy to control delinquency, even at the expense of short-term margins.