Lojas Renner (LREN3) Investor Day 2025 summary

Strategic priorities and growth ambitions

• Targets 9%-13% annual retail revenue growth through 2030, driven by area expansion, store productivity, and digital sales, focusing on both BU Renner and BU Youcom.

• Plans to open 140-170 new Renner stores in Brazil, targeting cities with 100,000-200,000 inhabitants, and expand Youcom to 260-290 stores, with new store models and expansion into underserved locations.

• Digital sales and app usage are expected to outpace overall growth, leveraging omnichannel capabilities, AI-powered personalization, and a new distribution center to support scalability and efficiency.

• Two-thirds of CapEx will be allocated to new stores, refurbishments, and digital initiatives, with annual CapEx normalized to 6%-7.5% of net revenue.

• Expansion into new concepts and brands will be disciplined, using the platform’s scale and data-driven approach to test and scale opportunities.

Financial guidance and shareholder returns

• Expects to reduce retail/operating expenses as a percentage of revenue by 2.5-3.5 percentage points by 2030 compared to 2025.

• Targets EBITDA margin of 15%-20% and ROIC of ~20% by 2030 through improved capital efficiency and inventory management.

• Plans to distribute 50%-80% of profits to shareholders via interest on equity (JCP), dividends, and share buybacks, supported by strong cash generation and a robust balance sheet.

• New share repurchase program and JCP distribution announced, including a new 75-million-share buyback program over 18 months.

• Capital structure will remain conservative, with no need for additional leverage to execute the growth plan.

Operational excellence and innovation

• Supply chain transformation includes full SKU-based fulfillment, reducing production lead times by 26% and increasing product availability, especially for fashion items.

• RFID technology fully implemented in Renner since 2017, enabling inventory accuracy, faster checkout, and supporting omnichannel operations.

• AI and data analytics are embedded across the value chain, from trend forecasting to personalized customer experiences and operational efficiency.

• Omnichannel customers spend three times more than single-channel customers, with digital sales now representing 15% of total sales and growing.

• Realize, the financial services arm, is launching an innovative dual-limit card in 2026, further integrating financial products into the ecosystem and boosting loyalty and sales.