Lojas Renner (LREN3) Q3 2025 earnings summary

Executive summary

• Net income for the last 12 months rose up to 59% year-over-year, reaching BRL 1.4 billion, with EPS up 59% in the same period.

• Q3 retail sales grew 4.2%, with apparel up 4.7%, despite missed sales opportunities due to climate and inventory decisions.

• Digital channels now account for 17% of sales, with integrated online/offline operations and digital GMV up 4.3%.

• 18 new stores opened year-to-date, with new formats outperforming industry averages and 16 renovations completed.

• Free cash flow generation reached BRL 473.1 million, and the company maintains a cash position of BRL 1.3 billion.

Financial highlights

• Retail gross margin increased to 55.1% (+0.4 pts), and apparel gross margin to 56.2% (+0.5 pts).

• Consolidated net income for Q3 was BRL 279.4 million, up 9.4% year-over-year; EPS grew 15.5%.

• EBITDA margin rose 7.9 pts year-over-year; Q3 EBITDA margin was 19.3%, down 0.2 pts sequentially.

• ROIC reached 14.4% in the last 12 months, up 1.7 pts.

• Financial services posted 37% growth in results, with improved credit quality and lower delinquency.

Outlook and guidance

• Q4 price adjustments are expected to be close to inflation, with gross margin anticipated to be slightly positive year-over-year.

• Expense growth in Q4 is projected to be the lowest of the year, supporting further expense dilution.

• Plans to open 30–37 new stores in 2025, with a focus on new markets and store refurbishments.

• Digital sales expected to grow faster than brick-and-mortar, with profitability maintained.

• Continued focus on operational leverage, expense reduction, and efficiency gains into 2026.