Lojas Renner (LREN3) Q4 2025 earnings summary

Executive summary

• Achieved record net income of R$1.5 billion in 2025, up 21.8% year-over-year, with margin expansion and robust cash generation.

• Retail net revenue grew 9.2% year-over-year, with same store sales up 8.1% and gross margin at 56.1%, the highest in six years.

• Operational improvements, inventory management, and omni-channel advances drove profitability and productivity gains.

• Store expansion accelerated with 34 new stores opened and 43 renovations in 2025, with plans for 50–60 new stores in 2026.

• Digital channel innovations, AI adoption, and loyalty program enhancements increased conversion rates and customer engagement.

Financial highlights

• Retail revenue grew 9.2% year-over-year; apparel revenue up 10.4% for 2025.

• Q4 retail gross margin reached 56.5%, up 0.7 p.p.; full year gross margin at 56.1%, near historical highs.

• Net income rose 21.8% for the year to R$1.5 billion; EPS up 27%.

• ROIC increased 2.3 p.p. to 14.7%; free cash flow totaled R$1.4 billion.

• R$1.8 billion returned to shareholders, representing over 112% of annual profit.

Outlook and guidance

• 2026–2030 ambitions include 9–13% annual retail net revenue growth, with stronger growth in the second half of 2026.

• Store expansion to accelerate with 50–60 new stores planned for 2026.

• Digital growth to outpace physical stores; operational leverage and margin expansion targeted.

• CapEx budgeted at R$1.05 billion for 2026, focused on store openings, renovations, and technology.

• Capital distribution commitment of 50–80% of net income for 2026–2030.