#Brazil #Lojas Renner #Porto Alegre #Youcom #Realize CFI

Lojas Renner's Solid Second Quarter Performance in 2025

Lojas Renner S.A., a prominent name in the Brazilian retail landscape, has announced its earnings for the second quarter of 2025, showcasing an impressive performance across various metrics. The company, listed on B3 under the symbol LREN3, expressed all financial figures in million Reais and compared the recent results with those of the prior year.

Key Highlights From 2Q25

During the second quarter, Lojas Renner achieved a remarkable 20% increase in apparel sales alongside an 18.6% rise in same-store sales (SSS), resulting in a robust gross margin of 58.4%, reflecting an increase of 0.9 percentage points compared to the previous period. The retail gross margin also saw an uplift, increasing by 0.9 percentage points to 57.1%.

The brand's new label, Youcom, recorded significant success with a 21.7% increase in sales, culminating in an elevated gross margin of 63.7%, indicating a positive trend for the brand. The company also experienced expense dilution of 0.8 percentage points, contributing to improved profitability for yet another quarter.

Furthermore, Lojas Renner reported a total adjusted EBITDA of R$ 891 million, marking a 32.9% enhancement with a 24.4% margin, an increase of 2.6 percentage points year-over-year. The cash position stands strong at R$ 1.8 billion, with a net cash position of R$ 1.2 billion, showcasing financial resilience.

A Strategic and Sustainable Approach

The company's CEO, Fabio Faccio, conveyed optimism regarding their quarter's strong performance, emphasizing the growth in revenue and profitability. The CEO remarked on the continued improvements in customer engagement through various channels, as e-commerce now represents 15% of total sales, reflecting a 21% year-over-year growth. This multi-channel strategy seems to be paying off, as it significantly boosts overall customer involvement and brand loyalty.

Lojas Renner is also following a sustainable approach, being the first retailer globally to adopt the international IFRS Sustainability Disclosure Standards - Climate (IFRS S1 and S2), showcasing its commitment to responsible business practices.

The company continues to maintain optimism regarding its business model, indicating there is substantial untapped potential. With plans to invest R$ 1.8 billion in growth initiatives, Lojas Renner aims to solidify its market position while simultaneously focusing on long-term sustainable growth.

Moreover, the company's share buyback program is progressing well, with about 70% executed to date, equivalent to 52 million shares bought back in just five months.

Forward-Looking Statements

As Lojas Renner moves forward, it remains mindful of market dynamics, economic trends, and ongoing opportunities for growth. The management team underscores that forward-looking statements concerning financial outcomes and growth potentials may be influenced by varying market conditions.

For stakeholders and analysts, the overall impression from Lojas Renner’s second quarter results is one of strength, resilience, and strategic foresight as it continues to navigate a complex retail landscape while maintaining its focus on profitability and value creation.

For a complete overview of Lojas Renner's 2Q25 results, please visit Lojas Renner Investor Relations.

Upcoming Earnings Conference Call

• - Date: August 8, 2025
• - Time: 10:00 AM BRT / 9:00 AM ET
• - Access: Webcast Link (Portuguese with English translation available)

About Lojas Renner S.A.

Lojas Renner S.A. has been active since 1965 and became publicly listed in 1967. It is known for its innovative business model in the fashion retail sector, operating under the Renner, Camicado, Youcom, Realize CFI, and Repassa brands across markets in Brazil, Argentina, and Uruguay. Recognized for its robust governance practices, Lojas Renner embodies a model of modern, customer-centric retailing.