Lojas Quero-Quero (LJQQ3) Q3 2025 earnings summary

Executive summary

• Q3 2025 was marked by a challenging macroeconomic environment with high interest rates, credit restrictions, and slower consumption, leading to a 2% drop in same-store sales and an 11.6% decrease over nine months, though Q3 saw 10% growth in total sales due to new store openings.

• Five new stores were opened in Q3, reaching 584 stores, with a total of 19 new stores and 22 refurbishments year-to-date, focusing on smaller cities and the South and Central-West regions.

• Digital retail and innovation initiatives contributed 25% of sales, aligning with strategic plans and a focus on phygital sales.

• Maintained financial discipline and focus on cash flow while investing moderately in expansion and executing on strategic pillars such as market share growth and operational efficiency.

Financial highlights

• Gross revenue for Q3 2025 was R$788.9 million, down 3.6% year-over-year; net operating revenue was R$695.4 million, down 2.4%.

• Same Store Sales (SSS) declined 11.6% year-over-year, impacted by weaker demand and a strong comparison base from last year’s flood-driven sales.

• Gross profit was R$225.5 million, down 7.3% year-over-year; gross margin (net revenue) was 32.4%, down 1.7 p.p.

• Accounting EBITDA was R$35.4 million, down from R$58 million year-over-year; adjusted EBITDA was R$5.1 million, down 83.5%.

• Net loss was R$42.1 million; adjusted net loss was R$26.0 million.

Outlook and guidance

• Store opening pace is expected to slow if the macro environment remains difficult, but the company is on track to meet guidance for the year with 19 new stores opened year-to-date.

• Optimism about potential benefits from government programs for home refurbishment and income tax reform, which could boost consumer spending.

• Remain focused on cash flow and strategic pillars to drive growth despite a challenging macroeconomic environment.