Lojas Renner (LREN3) investor relations material

Executive summary

• Achieved strong growth and profitability in Q2 2025, with apparel sales up 20% and SSS up 18.6%, driven by strategic initiatives and operational efficiency.

• Digital channel/e-commerce penetration reached 15% with 21% growth, expanding the active customer base.

• Net income increased 28.4% to R$404.5 million, EPS up 34.4%, and ROIC LTM reached 14.1% (+2.0p.p.).

• Diluted expenses by 0.8 percentage points over net revenue, reflecting ongoing cost discipline.

• Recognized as the first global retailer to adopt IFRS Sustainability Disclosure Standards (S1 and S2), ranking first in sector indices.

Financial highlights

• Retailing net revenue grew 18.5% year-over-year to R$3,649.7 million; apparel net revenue up 20%.

• Retail gross margin improved to 57.1% (+0.9p.p.), apparel gross margin at 58.4% (+0.9p.p.).

• Adjusted EBITDA reached R$891 million (+33%), margin at 24.4% (+2.6p.p.).

• Free cash flow reached R$333 million, net cash position at R$1.2 billion after share buybacks.

• Net income for the period was R$404.5 million (+28.4%), net margin at 11.1% (+0.9p.p.).

Outlook and guidance

• Expect to open 30–37 stores in 2025, with most openings in Q4/2H25, targeting new markets and omni-channel synergies.

• Price adjustments for H2 expected to be close to inflation; gross margin expected to remain positive, though not as high as H1.

• Anticipate healthy sales growth in H2, though not at Q1/Q2 levels, due to a stronger comparison base and macroeconomic headwinds.

• Plans to invest R$850 million in 2025, mainly in store refurbishments, new store openings, and technology.

• Management expects continued improvement in portfolio risk and operational efficiency.