Lojas Renner (LREN3) Q4 2025 earnings summary

Executive summary

• Achieved record net income of R$1.5 billion in 2025, up 21.8%–22% year-over-year, with strong profitability, efficiency, and robust cash generation.

• Retail net revenue grew 9.2% year-over-year, with same store sales up 8.1% and gross margin at 56.1%, the highest in six years.

• Opened 34 new stores and renovated 43, supporting productivity gains and expanding the sales area by 1.8%.

• Brand repositioning, digital advances, and omni-channel integration drove customer engagement and productivity.

• Distributed R$1.8 billion to shareholders through interest on equity and share buybacks, representing 112%–120% of net income.

Financial highlights

• 4Q25 retail net revenue rose 4.3% year-over-year, with SSS up 3.3% and gross margin at 56.5% (+0.7 p.p. YoY), highest in six years.

• Apparel net revenue increased 10.2% for the year, with SSS up 8.9% and gross margin at 57.4%.

• Total Adjusted EBITDA reached R$3,187 million for 2025 (+20.3%), with margin up 2.1 p.p. to 23.0%.

• EPS rose 13.4% in 4Q25 and 27% for 2025.

• ROIC improved by 2.3 p.p. to 14.7% in 2025.

Outlook and guidance

• 2026–2030 retail net revenue growth target of 9–13% annually, with stronger growth in H2 2026 due to base effects and store expansion.

• Plan to open 50–60 stores in 2026, aiming for 570–600 Renner units and 260–290 Youcom units by 2030.

• Ambition to achieve ex-IFRS 16 Adjusted EBITDA margin of 18–20% by 2030 and reduce operating expenses by 2.5–3.5 p.p. of revenue.

• Annual CAPEX to represent 6.0–7.5% of retail net revenue; profit distribution targeted at 50–80% of net income.

• Continued focus on gross margin expansion and operational leverage.