C&A Modas (CEAB3) Q1 2026 earnings summary

Executive summary

• Net apparel revenue grew 6.2% year-over-year, with a two-year cumulative increase of 22.7%, driven by strong execution in product mix and collection transition.

• Digital net revenue surged 29.2% year-over-year, raising e-commerce penetration and supporting omnichannel growth.

• Quarterly net income pre-IFRS 16 increased 77.7% year-over-year, while reported net income dropped 59.1% to R$1.7 million.

• Investments reached R$62.2 million, up 51.5% year-over-year, focused on store renovations, digital upgrades, and logistics automation.

• Announced a 4th share repurchase program for up to 10 million shares, about 5% of shares outstanding.

Financial highlights

• Consolidated net revenue reached R$1,619.6 million, up 0.5% year-over-year; apparel net revenue up 6.2%.

• Gross profit increased to R$901.2 million, with consolidated gross margin expanding to 55.6%.

• Adjusted EBITDA (pre-IFRS 16) was R$116 million, margin 7.2%, down 6.3% year-over-year.

• Adjusted net income (pre-IFRS 16) rose 77.7% to R$12.6 million; adjusted net income (post-IFRS 16) up 218.7% to R$8.0 million.

• ROIC for the last twelve months was 20.9%, up 2.8 percentage points year-over-year.

Outlook and guidance

• 20-25 store refurbishments planned for the year, with 12 underway; 10-15 new stores planned, 4 in progress.

• Focus on long-term value creation, increasing sales per square meter, and leveraging commercial intelligence.

• Final year of Energia C&A strategy, emphasizing assortment accuracy, technology, and customer connection.

• No measurable impacts from ongoing tax reform as of March 31, 2026; management will reassess as regulations are finalized.

• Minimal impact expected from increased CSLL rates for fintechs due to low income generation in SCD C&A Pay.