Americanas (AMER3) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were significantly impacted by the timing of Easter, which shifted to Q2, affecting comparability with Q1 2024 when Easter contributed 32% of brick-and-mortar revenue and market share gains of 1.3 p.p.

• Despite the seasonal shift, operational improvements continued, with double-digit same store sales growth (14.2% in the first four months), new projects like Galeria, Conecta, and Retail Media, and ongoing execution of the transformation plan.

• The company is transitioning from restructuring to growth, focusing on customer-centric initiatives, loyalty programs, digital transformation, and asset sales including Ame Digital and Parati.

• Significant governance reforms and legal actions have been implemented in response to confirmed accounting fraud by former management, with ongoing cooperation with authorities and internal controls enhancement.

Financial highlights

• Net revenue in Q1 2025 was R$3.1 billion, down 17.4% year-over-year due to the Easter shift; gross profit was R$891 million (gross margin 29.1%), both down from Q1 2024.

• Same store sales for the first four months of 2025 grew 14.2% year-over-year, normalizing for the Easter effect; excluding electronics, growth was 17.3%.

• Adjusted EBITDA for Q1 2025 was negative R$264 million (ex-IFRS 16), reflecting the seasonal impact and lack of extraordinary gains seen in Q1 2024.

• Net loss for the period was R$496 million, compared to net income of R$453 million in Q1 2024, which included R$1.3 billion in one-time gains from the Judicial Recovery Plan.

• Cash and equivalents plus receivables at quarter-end were R$2.1 billion, with net cash (cash + receivables minus debt) at R$268 million.

Outlook and guidance

• Management expects continued operational improvement, with each quarter targeted to outperform the prior year, and ongoing execution of recovery and efficiency projects including assortment review, CRM, and real estate optimization.

• The company continues to implement the Judicial Recovery Plan, including capital increases, debt restructuring, and asset sales to restore financial stability.

• Judicial recovery is expected to last two years, with compliance on track for a timely exit.