Lojas Renner (LREN3) Q2 2026 earnings summary

Executive summary

• Retail net revenue grew 1.1% in 2Q26 and 2.5% in 1H26 year-over-year, with apparel sales up 2.5% and 3.6% respectively, but below projections due to World Cup impacts and a challenging macro environment.

• Digital GMV rose 13.1% in 2Q26, reaching 16.9% of retail sales, highlighting the strength of the omnichannel strategy.

• Gross profit increased 1.8% in 2Q26, with record retail gross margin of 57.5% (+0.4 p.p.) and apparel gross margin of 58.7% (+0.3 p.p.).

• Net income was R$404.6 million in 2Q26, stable year-over-year, with EPS up 3.5% to R$0.4165.

• LTM ROIC improved to 15.1% (+1.9 p.p.), above the cost of capital.

Financial highlights

• Retail net revenue: R$3,689.2M in 2Q26 (+1.1% YoY), R$6,565.2M in 1H26 (+2.5% YoY).

• Retail EBITDA: R$791.2M in 2Q26 (+2.3% YoY), margin 21.4% (+0.2 p.p.).

• Adjusted total EBITDA: R$844.6M in 2Q26 (-5.3% YoY), margin 22.9% (-1.5 p.p.).

• Free cash flow: R$135.1M in 2Q26, R$393.2M in 1H26.

• Net cash position: R$1.2B as of 06/30/2026, after R$313M in share repurchases and R$438M in interest on capital approved.

Outlook and guidance

• 2026 net revenue growth guidance revised from 9–13% to 4–8% due to weaker 2Q26 sales and macro headwinds.

• Growth expected to accelerate in 2H26, supported by store expansion, reopening of renovated stores, and commercial initiatives.

• 2027–2030 net revenue growth guidance maintained at 9–13%.

• Capex guidance for 2026 remains at R$1,050M, with plans to open 50–60 stores.