Lojas Renner (LREN3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter gross margin, net income, and free cash flow, with retail revenue up 4.3% and apparel revenue up 5.1% year-over-year, reflecting strong operational execution and benefits from recent investments.

• Margin expansion driven by higher share of full-price sales, improved inventory management, and supply chain efficiency.

• Digital GMV grew 7.4%, reaching 16.6% penetration, and all business segments progressed, with Youcom and Camicado posting 14.4% and 2.2% revenue growth, respectively.

• Maintained robust cash position and continued disciplined capital allocation, including share repurchases and Interest on Capital payments.

• Continued focus on omni-channel strategy, digital innovation, and store expansion/renovation.

Financial highlights

• Retail net revenue: R$2,875.9 million (+4.3% YoY); apparel net revenue: R$2,564.8 million (+5.1% YoY); same-store sales up 3.2%.

• Retail gross profit: R$1,630.0 million (+7.4% YoY); gross margin: 56.7% (+1.6 p.p. YoY); apparel gross margin: 58.0% (+1.9 p.p. YoY).

• Net income: R$257.3 million (+16.4% YoY); EPS: R$0.2621 (+24% YoY); free cash flow: R$258 million (record for Q1).

• Retail EBITDA: R$487.5 million (+23.5% YoY), margin 17.0% (+2.7 p.p. YoY); retail EBITDA (ex-IFRS 16) up 16%.

• Financial cycle reduced by 8 days to 105 days; LTM ROIC improved to 15.2% (+1.9 p.p. YoY).

Outlook and guidance

• Maintains annual net revenue growth guidance of 9–13% for 2026–2030, with higher growth expected in the second half and focus on disciplined expansion, digital penetration, and omnichannel productivity.

• Store expansion plan: 50–60 new stores in 2026, aiming for 570–600 Renner and 260–290 Youcom stores by 2030.

• Efficiency initiatives to reduce operating expenses ratio by 2.5–3.5 p.p. by 2030 and targeting annual retail EBITDA margin (ex-IFRS 16) of 18–20%.

• Capital distribution guidance of 50–80% of net income for 2026–2030, with potential for higher payout if cash generation remains strong.

• Forward-looking statements are subject to market, economic, and sector uncertainties.