PORTO ALEGRE, Brazil, Aug. 7, 2025 /PRNewswire/ -- Lojas Renner S.A. (B3: LREN3) announces its results for the second quarter 2025 (2Q25). All amounts are expressed in millions of Reais and comparisons are with the same period in the previous year, except when otherwise indicated.
Highlights
- Apparel sales increased by 20.0% and SSS by 18.6%, reaching a 58.4% gross margin (+0.9p.p.)
- Retail gross margin increased by 0.9p.p., to 57.1%
- Youcom sales increased by 21.7%, achieving a gross margin of 63.7% (0.6p.p.)
- Expense dilution of 0.8p.p; representing one more quarter of improvement
- Results for Realize CFI were R$ 118 MM (R$ 58 MM ex regulatory changes "Res. 4,966") and continued improvement in portfolio risk
- Total Adjusted EBITDA reached R$ 891 MM (+32.9%) with a 24.4% (+2.6p.p.) margin
- Cash position of R$ 1.8 bi and net cash position of R$ 1.2 bi
- Reduction of 12 days in the financial cycle and generation of R$ 333 MM in Free Cash Flow
- ~70% of the buyback program executed to date (52 million shares)
- Net profit of R$ 404 MM (+28.4%) and Earnings per Share of R$ 0.4024 (+34.4%)
- Another quarter of ROIC LTM evolution, to reach 14.1% (+2.0 p.p.)
- The world's first retailer to adopt international IFRS Sustainability Disclosure Standards - Climate (IFRS S1 and S2)
Message from the CEO
We had another quarter of solid performance in growth, profitability and value creation. Second quarter apparel sales grew 20% with a 58.4% gross margin, representing a 0.9p.p year over year increase. We delivered quarter with expense dilution, and totaled R$ 404 million in net profit (+28%) or R$ 0.4024 per share (+34%), with ROIC LTM at 14.1%, a 2.0p.p. increase.
Sales at Youcom and Camicado rose 22% and 8%, respectively. Realize, which continues to serve as a powerful driver of customer engagement and loyalty, reported its seventh consecutive quarter of improved results, benefitting from sustained credit portfolio quality also when excluding the effects from Brazil's new Central Bank resolution.
The second quarter performance demonstrates that the initiatives we have implemented to strengthen our business model are gradually benefiting our operations while enhancing the Company's competitiveness. More agile and flexible fashion execution, combined with an increasingly more precise and integrated supply model, are enabling us to provide customers with the right product at the right time. A fluid digitalized and integrated shopping journey drove increased omni customer engagement while also expanding the overall active customer base during the quarter. E-commerce now accounted for 15% of total sales in the quarter, a 21% increase year-over-year while also delivering improved profitability.
Our performance throughout the first half of the year gives us confidence in the path we have chosen. Our business model holds considerable untapped potential, and we are focused on accelerating its full realization. We also have a R$ 1.8 billion cash position which provides the flexibility to invest in growth while we unlock additional opportunities. Our solid balance sheet has enabled us to execute approximately 70% of the share buyback program in just five months - equivalent to 52 million shares - reaching the limit of available reserves. We therefore reaffirm our strategic commitment to sustainable long-term growth while maintaining our focus on profitability and meaningful value creation.
Fabio Faccio - CEO
For a full version of Lojas Renner's Results, please visit:
https://ri.lojasrenner.com.br/en/
Earnings Conference Call*
Date: August 08, 2025
Time: 10:00 AM BRT / 9:00 AM ET
*Portuguese with a simultaneous English translation.
Access the webcast here.
About Lojas Renner S.A.
The Company was incorporated in 1965 and listed in 1967, becoming a pure widely held company in 2005 with a 100% free float, being considered the first true Brazilian corporation. Renner's equities are traded on B3 under the LREN3 symbol in the Novo Mercado segment, the highest level of corporate governance.
Lojas Renner S.A. is a fashion and lifestyle ecosystem connected to its customers through digital channels and its physical stores in Brazil, Argentina and Uruguay. It is today the ecosystem leader in omnichannel fashion retailing in Brazil through the Renner, Camicado, Youcom, Realize CFI and Repassa businesses.
Legal Notice
The statements contained in this document relate to the prospects for the business, estimates for operating and financial results and those related to growth prospects of Lojas Renner S.A. are merely projections and, as such, are based exclusively on the expectations of the Company's management with respect to the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of the Brazilian economy, the sector and the international markets and are therefore subject to change without prior notice.
SOURCE Lojas Renner S.A.
