C&A Modas (CEAB3) Investor Day 2026 summary

Strategic evolution and future plans

• Transitioning from the successful Energia cycle, which delivered 19% net revenue growth, 76% adjusted EBITDA increase, and reduced leverage from 1.5x to 0.2x, to the Full Power cycle focused on accelerating growth, productivity, and value capture through store renovations, digital expansion, and new business initiatives.

• Full Power strategy emphasizes omnichannel integration, leveraging technology, AI, and data analytics to enhance customer experience, increase sales per square meter, and drive operational efficiency.

• Expansion plans include opening 60–80 new stores, renovating 100–120 existing stores, and targeting cities with up to 500,000 people, while launching new business formats like ACE in the premium athleisure segment.

• Logistics are being regionalized to improve speed and reduce stock-outs, with investments in new distribution centers and automation to support growth and supply chain agility.

• ESG, leadership development, and a performance-driven culture remain central, with strong internal succession, high engagement, and a focus on diversity, circularity, and public 2030 commitments for sustainable materials and leadership equity.

Financial guidance and capital allocation

• The Energia cycle delivered a 30% sales increase, 76% adjusted EBITDA growth, and reduced net debt to near zero, restoring investment capacity.

• Full Power will prioritize disciplined CapEx (7–8% of revenues), with most investments funded by operating cash flow, focusing on store expansion, logistics, and technology.

• Any cash surplus beyond strategic investments will be returned to shareholders, with expectations to double returns compared to the previous cycle.

• Minimum IRR for new projects is set at 18%, and capital allocation will remain flexible to adapt to macroeconomic changes, with leverage targeted below 0.5x.

• Margin expansion will be driven by improved product assortment, reduced markdowns, and enhanced logistics, with omnichannel profitability seen as robust and margin-accretive.

Business developments and innovation

• Digital transformation includes relaunching the website and app, implementing AI-powered personal shopper tools, and achieving up to 5x higher conversion rates for assisted digital journeys.

• C&A Pay, the proprietary payment solution, now accounts for 28–30% of sales, with plans to expand into loans and private label cards, aiming to deepen customer loyalty and frequency.

• The ACE brand targets the fast-growing athleisure market, with a test-and-learn approach and plans for asset-light expansion, including potential franchising.

• Investments in supply chain speed and flexibility, including push-pull logistics and drops models for seasonal collections, are designed to mitigate risks and capture demand shifts.

• Technology and AI are embedded across product development, assortment, pricing, and customer relationship management, supporting hyper-personalization and operational productivity.