Lojas Renner Announces Third Quarter 2025 Earnings Results

PORTO ALEGRE, Brazil, Nov. 6, 2025 /PRNewswire/ -- Lojas Renner S.A. (B3: LREN3) announces its results for the third quarter 2025 (3Q25). All amounts are expressed in millions of Reais and comparisons are with the same period in the previous year, except when otherwise indicated.

Highlights

• Apparel sales increased by 4.7% with a 3.3% increase in SSS, reaching a 56.2% gross margin (+0.5p.p.)
• Retail gross margin increased by 0.4p.p., reaching 55.1%
• Results for Realize CFI were R$ 79.8 MM, a 36.9% increase reflecting a healthy portfolio risk profile
• Total Adjusted EBITDA reached R$ 593.8 MM (+2.9%), with a 19.3% margin (-0.2p.p.)
• Cash position of R$ 1.6 bi and net cash position of R$ 1.3 bi
• Generation of R$ 473.1 MM in Free Cash Flow
• ~85% of the buyback program executed to date (~64 million shares; a total of R$860 MM)
• Net profit of R$ 279.4 MM (+9.4%) and Earnings per Share of R$ 0.2803 (+15.5%)
• Another quarter of ROIC (LTM) improvement, reaching 14.4% (+1.7 p.p.)

Message from the CEO

Our performance throughout the year demonstrates that the initiatives we've implemented to evolve our business model are contributing to our results. While third quarter results reflect the challenges of a distinct climate dynamic compared to 2024, this does not alter our trajectory.

Autumn temperatures boosted second quarter sales this year, however, this limited the availability of winter items in the third quarter. We thoroughly assessed the risk/return outlook for the upcoming months and opted not to place additional orders which, when combined with our considerable exposure to colder regions, had a temporary impact of approximately 2 to 3 percentage points on our sales. We established a process that incorporates more frequent monitoring and decision checkpoints, minimizing the risk of future missed opportunities.

Retail sales therefore grew by 4.2%, and by 4.7% in apparel, with combined average growth for Q2 and Q3 which reached 11.5%, 12.5% in apparel. We delivered an 11.6%, 12.8% in apparel, year-on-year increase for the nine-month period, also with market share gains.

We delivered another quarter of solid progress in profitability, and apparel gross margin improved for another consecutive quarter to reach 56.2%, a 0.5 percentage point increase, and a 0.4 percentage point increase in retail. This reflects our relentless pursuit of faster and more flexible fashion execution, supported by a more precise and integrated supply model, resulting in a 1.9 percentage point decrease in the share of aged inventory in sales.

Lower sales volumes and the previously scheduled timing of certain operational initiatives resulted in a temporary increase in expenses above sales growth this quarter. However, this does not alter the structural trajectory of annual operational leverage we initiated in 2024. With the intensive cycle of structural investments in CAPEX and OPEX complete, we are now positioned to drive sales growth with consistent expense dilution. This reinforces our expectation of consistent expense dilution, both due to previous investments—which support a higher level of sales growth—and through cost reduction opportunities, driven by a targeted effort we have already initiated.

Realize CFI, a key driver of customer engagement and loyalty, delivered its eighth consecutive quarter of results growth, up 37%, driven by the quality of its credit portfolio.

Net income increased by 9% to R$279 million, or R$0.2803 per share, a 16% increase. Our trailing twelve-month ROIC reached 14.4%, a 1.7 percentage point improvement, alongside free cash flow generation of R$473 million- the highest in the fashion industry in Brazil.

Our digital channel now represents 17% of total sales, driven by the prior years' investments which will enable continued growth within this channel without compromising Company's profitability. The integration of our online and bricks and mortar operations at our São Paulo DC resulted in an 8 percentage point increase in share of new inventory within e-commerce sales year-to-date.

We opened 18 stores year to date advancing toward our goal of 30–37 openings by year-end, with a focus on expanding into new markets. Our new store formats continue to deliver above average performance, positioning us well to scale sustainably across different market environments. We've completed 16 store renovations so far this year, with two more scheduled for completion. These renovations and new store openings, together with continued improvements in our digital and omnichannel journey and strengthened fashion execution, have enabled us to expand our active customer base and improve our NPS.

We ended 3Q with net cash position of R$1.3 billion which, together with sustained free cash flow generation, provides us both the strength and resilience to confidently navigate adverse scenarios. We have the flexibility to pursue targeted investments to drive growth and capture opportunities. Likewise, our solid balance sheet enables us to deliver shareholder returns above the industry average: in 2025, we have already distributed R$1.4 billion through interest on equity and share buybacks, with approximately 85% of the program (~64 million shares) we announced in February.

We remain focused on further unlocking the full potential of our business model and reaffirm our commitment to driving sustainable profitable long-term growth and value creation.

Fabio Faccio – CEO

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

Earnings Conference Call*

Date: November 07, 2025
Time: 10:00 AM BRT / 8:00 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 within 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.

All variations and totals as well as rounded numbers presented herein are calculated in thousands of Reais.

SOURCE Lojas Renner S.A.