Magazine Luiza (MGLU3) investor relations material

Executive summary

• Entered a new strategic cycle focused on consolidating AI-driven omnichannel leadership, expanding physical and online reach, and accelerating monetization of service platforms and fintech offerings, including partnerships with third-party channels.

• Strong double-digit growth in physical stores, with 10.3% year-over-year and 9.7% same-store sales growth, and significant market share gains, especially in durable goods and new store formats.

• Online sales strategy shifted to partnerships with third-party platforms (notably Amazon and AliExpress), prioritizing profitability over volume, with further partnerships expected.

• Continued strict expense control and financial discipline, including a hiring freeze and disciplined marketing spend, supporting EBITDA margin stability.

• Service platforms and financial operations (Luizacred, MagaluPay, insurance, consortiums) delivered robust growth and profitability.

Financial highlights

• Gross revenue reached R$11.1 billion in 2Q26, down 2.2% year-over-year, with physical stores as the main growth driver.

• Gross margin improved to 30.6%, among the highest for a second quarter.

• Adjusted EBITDA was R$708.8 million (8.0% margin), stable year-over-year.

• Adjusted net loss was R$50.4 million, mainly due to high interest rates and financial expenses.

• Robust cash position of R$5.8 billion and net cash of R$0.8 billion as of June 2026.

Outlook and guidance

• Confident in resuming online growth in the second half, especially Q4, via third-party platform partnerships and new initiatives like Lu's WhatsApp.

• Expecting continued strong performance in physical stores and service platforms, with ecosystem expansion and operational discipline.

• Inventory and working capital management to support sales acceleration and cash generation.

• Anticipate lower financial expenses as interest rates decline and receivables prepayment decreases.

• Significant sales impact from third-party channel partnerships expected in 3Q and 4Q26.