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 increased promotions, leading to a 3.6% decline in gross revenue to R$788.9 million and an 11.6% drop in same-store sales year-over-year.

• Five new stores were opened in Q3, totaling 19 new stores year-to-date and 584 stores overall, with expansion focused on smaller cities and the South and Central-West regions.

• The company maintained financial discipline, focusing on cash flow, operational efficiency, and selective expansion despite the difficult retail environment.

• Digital retail and innovation accounted for 25% of sales, aligning with strategic plans.

• Continued execution on strategic pillars: market share growth, credit excellence, operational efficiency, phygital sales, and high-performance culture.

Financial highlights

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

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

• EBITDA for Q3 was R$35.4 million, down 39.4% year-over-year; adjusted EBITDA was R$5.1 million, down 83.5%.

• Net loss for Q3 was R$42.1 million; adjusted net loss was R$26.0 million.

• Operating expenses rose 3.2% year-over-year, mainly due to expansion and inflation.

Outlook and guidance

• The company remains on track to meet its guidance of opening 20 to 30 stores in 2025, with 19 already opened by Q3.

• Store opening pace may slow if macro conditions remain difficult; expansion plans will be adjusted based on market conditions.

• Management continues to focus on cash flow, operational efficiency, and gradual price adjustments to offset higher capital costs.

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