Lojas Renner (LREN3) Q4 2025 earnings summary

Executive summary

• Retail net revenue grew 9.2% year-over-year to R$13.8 billion, with apparel revenue up 10.2%, nearly double the market average, and digital GMV up 12.3% to 15.5% penetration.

• Record net income of R$1.5 billion in 2025, up 21.8% year-over-year, with margin expansion and robust cash generation.

• Operational improvements, inventory management, and omni-channel advances drove profitability and productivity gains.

• Store expansion accelerated with 34 new stores opened and 43 renovated in 2025, with plans for 50-60 new stores in 2026.

• Digital channel innovations, AI adoption, and loyalty program enhancements increased conversion rates and customer engagement.

Financial highlights

• Retail revenue grew 9.2% year-over-year; apparel revenue up 10.4%; same-store sales up 8.1%.

• Q4 retail gross margin reached 56.5%, up 0.7 p.p.; full year gross margin at 56.1%, highest in six years.

• Adjusted EBITDA rose 20.3% to R$3.2 billion, with margin up 2.1 p.p. to 23.0%.

• Net income rose 21.8% for the year to R$1.5 billion; EPS up 27%.

• ROIC improved 2.3 p.p. to 14.7%; free cash flow totaled R$1.4 billion.

Outlook and guidance

• 2026-2030 guidance: annual retail revenue growth of 9-13%, EBITDA margin (ex-IFRS 16) of 18-20%, and ROIC target of 20% by 2030.

• Store expansion to accelerate with 50-60 new stores planned for 2026.

• Digital growth to outpace physical stores; operational leverage and margin expansion targeted.

• CapEx budgeted at R$1.05 billion for 2026, focused on store openings, renovations, IT, and logistics.

• Commitment to distribute 50-80% of net profit to shareholders from 2026-2030.