Lojas Renner Announces First Quarter 2025 Earnings Results

PORTO ALEGRE, Brazil, May 8, 2025 /PRNewswire/ -- Lojas Renner S.A. (B3: LREN3), announces its results for the first quarter 2025 (1Q25). All amounts are expressed in millions of Reais and all comparisons are with the same period for the previous year, except when otherwise indicated.

Highlights

• Apparel sales increased 13.5%
• Gross margin increased 0.6p.p., with the lowest level of markdowns in 1s0 years and +5.4p.p. in Camicado
• Youcom sales increased by 28%
• Fifth consecutive quarter of expenses dilution, at 1.3p.p.
• Realize with result of R$ 191 MM (~R$ 95 MM on a comparable basis ex Central Bank resolution) and a significant improvement in portfolio risk
• Total Adjusted EBITDA reached R$ 585 MM (+55%) with margin of 21.2% (+5.8p.p.)
• Cash position of R$ 1.6 bi and net cash of R$ 1.2 bi
• 62% of the buyback program executed (46,5 million shares repurchased) until now
• Net profit of R$ 221 million (+59%) and Earnings Per Share up by 65%
• 1.9 p.p. increase in ROIC (ROIC LTM of 13.3%)

Message from the CEO
Lojas Renner's first-quarter results demonstrate that the evolution of our business model and the initiatives we have implemented are gradually bearing fruit while enhancing our competitiveness.

First quarter apparel sales increased by 13.5% while consolidated gross margin increased by 0.6 p.p., also with the lowest level of markdowns in the last 10 years. We delivered operating leverage for the fifth consecutive quarter - which improved by 1.3 p.p. in 1Q25- and achieved R$ 221 million (+59%) in net profit, resulting in a 1.9 p.p. increase in ROICLTM, which reached 13.3% for 1Q25.

Part of this performance for the quarter reflects the sustained, gradual effects of Renner's more agile and flexible fashion execution, combined with an increasingly precise supply model (100% by SKU) and shorter lead times for stores. Additionally, the increasingly differentiated and integrated shopping journey across all of Renner's businesses contributed to the improvement in NPS and an increase in the active customer base during the quarter. Digitalization of the shopping experience continued to evolve at Renner stores, and Digital GMV gained even more relevance, increasing by 15% with 16% penetration and higher profitability.

Realize delivered its sixth consecutive quarter of improved operational results, also benefiting from adjustments related to the new Bacen resolution. However, excluding the Bacen effect, Realize results improved significantly (+7 times). Credit portfolio quality continued to evolve during the quarter, and this business continued to drive Renner's retail operations as an important catalyst to customer loyalty and value generation.

It's important to also note the strong performance at Youcom and Camicado, with a 28% increase in Youcom sales and a 5.4 p.p. increase in Camicado's gross margin for 1Q25.

While we're pleased with Renner's first quarter performance as a positive start to the year, our evolution will be more challenging given our high nominal base. However, our progress related to key metrics this quarter demonstrates that we are on the right track. Further, our Company's solid cash position of R$ 1.6 billion enables us to make strategic investments aimed at growth and to capture opportunities in the current environment. Similarly, our strong balance sheet provided us the flexibility during the quarter to execute 62% of the share buyback program we announced in February, with 46.5 million shares repurchased to date. Our potential is greater. And while there remains considerable opportunity for further evolution on this journey, our investments were made to achieve this objective. We remain focused on our priority of accelerating our ability to capture our evolved business model's full potential, and we reaffirm our commitment to sustained long-term growth, with profitability, and value generation.
Fabio Faccio – CEO

For a full version of Lojas Renner's Results, please visit: https://lojasrenner.mzweb.com.br/en/

Earnings Conference Call*
Date: May 9, 2025
Time: 10:00 AM BRT / 9:00 AM ET
*Portuguese with a simultaneous English translation.
Access the webcast here.

About Lojas Renner S.A.
The Company was incorporated in 1965 and listed in 1967, becoming a pure widely held company in 2005 with a 100% free float, being considered the first true Brazilian corporation. Renner's equities are traded on B3 under the LREN3 symbol in the Novo Mercado segment, the highest level of corporate governance

Lojas Renner S.A. is a fashion and lifestyle ecosystem connected to its customers through digital channels and its physical stores in Brazil, Argentina and Uruguay. It is today the ecosystem leader in omnichannel fashion retailing in Brazil through the Renner, Camicado, Youcom, Realize CFI and Repassa businesses.

Legal Notice
The statements contained in this document relate to the prospects for the business, estimates for operating and financial results and those related to growth prospects of Lojas Renner S.A. are merely projections and, as such, are based exclusively on the expectations of the Company's management with respect to the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of the Brazilian economy, the sector and the international markets and are therefore subject to change without prior notice.

SOURCE Lojas Renner S.A.