Vivara Participações (VIVA3) Q1 2026 earnings summary

Executive summary

• Gross revenue grew 13.8% year-over-year in 1Q26, driven by strong same-store sales (SSS) of 9.7% and digital sales growth of 16.2%.

• Net revenue for Q1 2026 reached R$595.5 million, up 10.9% year-over-year, supported by higher sales volumes and expanded store base.

• Gross margin expanded by up to 2.0 percentage points to 69.9%, reflecting effective markup management and operational efficiency.

• Operating cash generation reached R$92.2 million, reversing prior year cash consumption, driven by inventory optimization.

• Net income for the quarter was R$80.8 million to R$88.2 million, down year-over-year due to higher expenses, lower subsidies, and increased financial costs.

Financial highlights

• Gross profit rose to R$416.4 million, with gross margin at 69.9%.

• Adjusted EBITDA was R$96.7 million, margin stable at 16.2%.

• Inventory days reduced by 77 days year-over-year, reflecting improved inventory management.

• Net debt decreased to R$246.6 million, with net debt/adjusted EBITDA at 0.3x.

• Cash and equivalents at quarter-end totaled R$308.5 million.

Outlook and guidance

• Management expects gross margin to remain stable or slightly positive for the year, with margin levers to offset commodity price pressures.

• Inventory optimization and gradual price adjustments are expected to help navigate gold price volatility through 2027.

• Continued focus on expanding store network, digital channels, and investments in logistics and technology.

• Confidence in maintaining and expanding market leadership, with a 24.8% share of the Brazilian jewelry market.