C&A Modas (CEAB3) Q2 2026 earnings summary

Executive summary

• Achieved 5.6% growth in apparel net revenue and 4.1% apparel same-store sales, driven by strong winter collection performance and disciplined execution, despite a challenging consumer environment.

• Apparel gross margin expanded for the 20th consecutive quarter, reaching a record 59.1% for a second quarter.

• Adjusted net income hit a record R$130.1 million for a second quarter, up 4.3% year-over-year.

• Celebrated 50 years in Brazil, marked by major brand engagement events, new store concepts, and the launch of the ACE sports brand.

• Significant investments in store expansion, renovations, and digital transformation, including new Energia and Ace stores.

Financial highlights

• Apparel net revenue reached R$1.8947 billion, up 5.6% year-over-year; digital net revenue hit R$154 million, up 33.3%.

• Adjusted net income reached R$130.1 million, a 4.3% increase year-over-year, with a 6.2% adjusted net margin.

• Adjusted EBITDA (post-IFRS 16) was R$435.9 million, with a margin of 20.9%, down 0.4 p.p. year-over-year.

• ROIC (LTM 2Q26) at 19.9%, above cost of capital.

• Gross debt decreased 26% year-over-year to R$952 million; net debt to EBITDA ratio at 0.2x.

Outlook and guidance

• Expect normalization of inventory days and cash conversion cycle by year-end, with free cash flow in line with last year, concentrated in Q4.

• No major changes anticipated in price positioning or margin strategy; focus remains on value creation, operational efficiency, and digital transformation.

• Continued investment in store modernization, digital capabilities, and omnichannel integration to drive future growth.