Lojas Renner (LREN3) investor relations material

Executive summary

• Net income for the last 12 months rose up to 59% year-over-year, reaching BRL 1.4 billion, with EPS up 59% and ROIC at 14.4%.

• Digital channels now account for 17% of sales, with integrated online/offline operations and improved gross margins.

• 18 new stores opened year-to-date, with new formats and refurbishments outperforming industry averages and boosting the customer base.

• Free cash flow reached BRL 473.1 million, and net cash position stood at BRL 1.3 billion.

• Business model evolution and efficiency initiatives are driving sustainable, profitable long-term growth.

Financial highlights

• Retail gross margin reached 55.1% (up 0.4 p.p.), and apparel gross margin 56.2% (up 0.5 p.p.) year-over-year.

• Consolidated net income for Q3 was BRL 279.4 million, up 9.4% year-over-year; EPS increased 15.5%.

• Total adjusted EBITDA for Q3 was BRL 593.8 million (+2.9%), with a 19.3% margin.

• Real Easy/financial services posted 37% growth, with improved credit quality and lower delinquency.

• Year-to-date EBITDA and net income grew 27%.

Outlook and guidance

• Q4 price adjustments expected to be in line with inflation; gross margin anticipated to be slightly positive versus 2024.

• Expense growth in Q4 projected to be the lowest of the year, supporting further expense dilution.

• Plans to open 30–37 new stores in 2025, with a focus on new markets and store refurbishments.

• Digital channel expected to continue growing, leveraging prior investments without compromising profitability.

• Continued focus on operational leverage, expense reduction, and efficiency gains into 2026.