Guararapes Confecções (RIAA3) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated EBITDA of R$1.8 billion and net income of R$512 million in 2025, more than double the previous year, driven by disciplined execution, efficiency, and strong performance in both retail and financial services.

• Transformation initiatives since 2023 included new leadership, strategic board creation, operational improvements, and inventory reduction, resulting in significant cash generation and lower leverage.

• Sale of Midway Mall for R$1.6 billion in December 2025, with proceeds used for special dividends, capital structure optimization, and deleveraging.

• Apparel SSS grew 10.3% year-over-year in 2025, marking 10 consecutive quarters of growth, with strong brand development and 21 new store openings.

• Digital and omnichannel strategies accelerated, contributing to margin expansion and operational efficiency.

Financial highlights

• Consolidated net revenue reached R$10.5 billion in 2025, up 9.0% from 2024; 4Q25 net revenue was R$3.2 billion, up 5.9% year-over-year.

• Adjusted consolidated EBITDA margin was 16.7% in 2025 (+1.3 p.p.), and 20.6% in 4Q25 (+1.9 p.p.), both highest in five years.

• Comparable net income for 2025 was R$512 million (+117.8% vs. 2024); 4Q25 net income was R$322 million (+28.8% vs. 4Q24).

• Apparel gross margin reached 56.7% in 2025 (+2.4 p.p.), highest in seven years.

• CAPEX totaled R$572 million in 2025 (5.4% of net revenue), focused on technology, store expansion, and logistics.

Outlook and guidance

• Strategic focus on maximizing value per square meter, leveraging strong brand, integrated supply chain, and financial services.

• Plans for 15–21 new store openings per year, targeting regions with high productivity and IRRs above 25%.

• Continued investment in digital, store footprint, and operational efficiency to drive sustainable and profitable growth.