Lojas Renner (LREN3) investor relations material

Executive summary

• Achieved record first-quarter gross margin, net income, and free cash flow, with retail revenue up 4.3% and apparel revenue up 5.1% year-over-year, supported by improved inventory management and omni-channel initiatives.

• Margin expansion driven by higher share of full-price sales, supply chain efficiency, and disciplined execution.

• Net income rose 16.4%, with EPS up 24% and robust cash generation of R$258 million.

• Expansion and renovation of stores, omni-channel enhancements, and digital initiatives supported growth.

• Maintained robust cash position and continued disciplined capital allocation, including share repurchases and Interest on Capital payments.

Financial highlights

• Retail net revenue: R$2,875.9 million (+4.3% YoY); apparel net revenue: R$2,564.8 million (+5.1% YoY).

• Retail gross profit: R$1,630.0 million (+7.4% YoY); gross margin: 56.7% (+1.6 p.p. YoY); apparel gross margin: 58.0% (+1.9 p.p. YoY).

• Retail EBITDA: R$487.5 million (+23.5% YoY), margin 17.0% (+2.7 p.p. YoY).

• Free cash flow reached R$258 million, a record for Q1, with a financial cycle of 105 days (down 8 days YoY).

• LTM ROIC improved to 15.2%, up 1.9 p.p. year-over-year.

Outlook and guidance

• Maintains annual net revenue growth guidance of 9–13% for 2026–2030, with lower growth in H1 and higher in H2.

• Store expansion plan: 50–60 new stores in 2026, aiming for 570–600 Renner and 260–290 Youcom stores by 2030.

• Efficiency initiatives to reduce operating expenses ratio by 2.5–3.5 p.p. by 2030.

• Targeting annual retail EBITDA margin (ex-IFRS 16) of 18–20% by 2030.

• Capital distribution guidance of 50–80% of net income for 2026–2030.