By Brazil Stock Guide – Grupo Casas Bahia (BHIA3) posted a wider first-quarter loss even as sales, online volumes and adjusted EBITDA improved, underscoring how Brazil’s high interest-rate environment continues to weigh on one of the country’s best-known retailers.
The company reported a net loss of R$1.064 billion in the first quarter of 2026, compared with a R$408 million loss a year earlier. The deterioration came despite a 6.1% increase in net revenue, to R$7.416 billion, and a 6.4% rise in gross revenue, to R$8.830 billion.
Casas Bahia said its consolidated GMV rose 5% year over year to R$11.2 billion. E-commerce grew 14.6%, led by a 27.4% increase in first-party online sales, while marketplace sales fell 3% and physical stores declined 1.6% against a strong comparison base.
Adjusted EBITDA reached R$597 million, up 4.7% from the same period last year, with the adjusted EBITDA margin stable at 8.1%. Gross margin edged up 0.1 percentage point to 30.3%, even with stronger online participation, tougher competition and a more conservative credit policy.
The operating recovery, however, was not enough to absorb the cost of debt. The company’s net financial result was negative R$1.171 billion, compared with a negative R$922 million a year earlier. Casas Bahia said higher interest rates, reflected in the increase in the average CDI rate, pressured the bottom line.
The retailer also did not book deferred income tax assets in the quarter, citing a challenging macroeconomic environment marked by high interest rates, inflationary pressure and geopolitical instability. That tax effect added to the gap between operational improvement and reported earnings.
Casas Bahia said its balance sheet has been transformed, with net debt down 68% and financial leverage reduced by R$2.7 billion compared with the first quarter of 2025. Still, the company ended March with negative consolidated working capital of R$6.032 billion and accumulated losses of R$8.361 billion.
The group is also preparing for a potential sales boost from the FIFA World Cup, especially in televisions. The company said it is Brazil’s largest seller of TVs and entered the period with inventory, product mix and commercial conditions aimed at capturing demand linked to the tournament.
The quarter leaves Casas Bahia with a clearer operating story but a still fragile financial one. Sales are growing, margins are holding and digital channels are improving. Yet the company’s turnaround remains dependent on lower financing costs, disciplined working-capital management and a consumer environment strong enough to turn revenue growth into profit.
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