Lojas Renner (LREN3) Q4 2025 earnings summary

Executive summary

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

• Retail net revenue grew 9.2% year-over-year, with apparel revenue up 10.2% and same store sales up 8.1%.

• Digital GMV increased 12.3%, reaching 15.5% penetration, with innovations in omni-channel and AI driving conversion and engagement.

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

• R$1.8 billion was distributed to shareholders via dividends and buybacks, exceeding annual profit by using prior reserves.

Financial highlights

• Consolidated net revenue reached R$15.83 billion (+9.7% YoY); retail net revenue was R$13.84 billion (+9.2% YoY).

• Retail gross margin was 56.1% (+0.7 p.p.), apparel margin 57.4%, both near historical highs.

• Adjusted EBITDA reached R$3.19 billion (+20.3%), with margin at 23.0% (+2.1 p.p.).

• Net income was R$1.5 billion (+21.8%), with EPS up 27% to R$1.44.

• ROIC improved to 14.7% (+2.3 p.p.), and free cash flow totaled R$1.4 billion.

Outlook and guidance

• 2026–2030 guidance targets 9–13% annual retail net revenue growth and EBITDA margin ex-IFRS 16 at 18–20%.

• Store expansion to accelerate with 50–60 new stores planned for 2026 and a capital budget of R$1.05 billion.

• Operating expenses as a share of revenue to be reduced by 2.5–3.5 p.p. by 2030.

• Commitment to distribute 50–80% of net income as dividends or buybacks.