Lojas Quero-Quero (LJQQ3) Q2 2025 earnings summary

Executive summary

• Revenue grew 3.3% in Q2 2025, reaching R$760.7 million, with 6 new stores opened, totaling 579 stores and expanding presence in South and Midwest regions.

• Same-store sales declined 3.5% in Q2 2025 due to a high comparison base from prior-year flood-driven demand in Rio Grande do Sul.

• Financial services and credit card segments posted strong revenue growth, offsetting retail softness.

• Maintained financial discipline, cost control, and focus on cash flow, with controlled delinquency rates and successful capital market operations.

• Adjusted net loss was R$29.6 million in Q2 2025, with an adjusted net margin of -4.4%.

Financial highlights

• Net revenue reached R$761 million in Q2 2025, up 3% year-over-year; gross profit was R$216 million, with gross margin at 32.3% (down 2.4 p.p.).

• Adjusted EBITDA was R$2.9 million in Q2 2025, with an adjusted EBITDA margin of 0.4%, down 1.5 p.p. year-over-year.

• Net loss for Q2 was R$46.0 million, an improvement from a R$56.4 million loss in Q2 2024.

• Retail sales grew 7% year-to-date, surpassing BRL 1 billion.

• Financial services revenue increased 14% in Q2 and 13% year-to-date; credit portfolio grew 18% year-over-year.

Outlook and guidance

• On track to meet guidance of 20–30 new stores in 2025, with 14 opened by mid-year.

• Management remains focused on market share, credit excellence, operational efficiency, digital sales, and high-performance culture.

• Expect improved financial services margins after Q3 as funding cost adjustments take effect.

• Anticipate stronger results in Q3 and Q4, with August being a key sales month due to anniversary promotions.

• Cautions on forward-looking statements due to economic and industry uncertainties.