Lojas Renner (LREN3) Q2 2026 earnings summary

Executive summary

• Retail net revenue grew 1.1% year-over-year to R$3,689.2 million in 2Q26, with apparel sales up 2.5% and digital GMV rising 13.1% to 16.9% of total retail sales, but sales underperformed expectations due to the World Cup's impact on store traffic and a challenging macro environment.

• Gross profit increased 1.8% to R$2,121.3 million, with record retail gross margin of 57.5% (+0.4 p.p.) and apparel gross margin of 58.7% (+0.3 p.p.).

• Net income was R$404.6 million in 2Q26, stable year-over-year, with EPS up 3.5% to R$0.4165; on a comparable basis, EPS rose 11.7%.

• Disciplined inventory and expense management limited operating expense growth to 1.5%, supporting profitability despite macroeconomic and competitive pressures.

• Digital channel share increased, supported by targeted marketing and omnichannel strategies.

Financial highlights

• Retail EBITDA increased 2.3% to R$791.2 million, with margin up 0.2 p.p. to 21.4%.

• Adjusted total EBITDA declined 5.3% to R$844.6 million, margin down 1.5 p.p. to 22.9%.

• Free cash flow was R$135.1 million in 2Q26, R$393.2 million in 1H26.

• Net cash position at quarter-end was R$1.2 billion, after R$313 million in share repurchases and R$438 million in interest on capital approved in 1H26.

• LTM ROIC improved to 15.1%, up 1.9 p.p. year-over-year.

Outlook and guidance

• 2026 net revenue growth guidance revised downward from 9%-13% to 4%-8% due to weaker 2Q26 sales, World Cup impacts, and macro headwinds.

• Growth expected to accelerate in 2H26, driven by a favorable comparable base, store reopenings, and ongoing innovation.

• Long-term growth targets (2027-2030) of 9%-13% remain unchanged, with all other strategic priorities intact.

• Capex guidance for 2026 remains at R$1,050 million, with plans to open 50-60 stores.