By Brazil Stock Guide – Lojas Renner S.A. (B3: LREN3) reported net income of R$553 million in the fourth quarter of 2025, a 13% increase from the same period a year earlier, supported by margin expansion and tight control of operating expenses. For the full year, the company posted record profit of R$1.46 billion, up 21.8% year over year, reinforcing the retailer’s recovery in profitability after a challenging consumer cycle.
Steady revenue growth
Retail net revenue reached R$4.35 billion in the quarter, a 4.3% increase compared with 4Q24. Same-store sales rose 3.3%, reflecting a slower start to the quarter due to unusually cold weather and weaker consumer purchasing power, followed by stronger performance as collections gained traction in stores.
For the full year, retail revenue totaled R$13.8 billion, up 9.2% from 2024, while apparel revenue grew 10.2%, outpacing the broader Brazilian fashion market. The company attributed the performance to market share gains, disciplined expansion into new cities, and improvements in omnichannel productivity.
Sales productivity remained strong, with revenue per square meter reaching R$17,200, about 45% higher than direct competitors, underscoring the efficiency of Renner’s store network and merchandising strategy.
Margins improve
Profitability indicators also strengthened. Retail gross margin reached 56.5% in the quarter, expanding 0.7 percentage points year over year, reflecting better inventory management and reduced promotional activity.
Retail adjusted EBITDA totaled R$1.05 billion, rising 9.3% from the previous year, with margin improving to 24.2%. Total adjusted EBITDA reached R$1.12 billion, up 9% year over year.
For the full year, adjusted EBITDA climbed to R$3.19 billion, an increase of 20.3%, with margin reaching 23%.
A key driver was cost discipline. Operating expenses rose only 2% in the quarter, allowing the company to dilute costs by 0.7 percentage points relative to revenue.
Digital and financial services support growth
Renner’s digital channel continued to expand. Digital GMV rose 9.9% in the quarter to R$834.6 million, accounting for 14.4% of total sales.
For the year, digital GMV grew 12.3%, reaching 15.5% of sales, while the company’s app ended the year with 7.6 million monthly active users, reinforcing its role as a key driver of engagement and omnichannel integration.
The company’s financial services arm, Realize CFI, posted quarterly results of R$63.6 million and ended the year with a credit portfolio of R$6.9 billion. In 2025, the division generated R$452 million in profit, significantly higher than the previous year.
Expansion and capital returns
Renner closed the year with 717 stores, after opening 34 new locations in 2025. For 2026, the company plans capital expenditures of about R$1.05 billion, including 50 to 60 new store openings.
The retailer also announced a new share buyback program of up to 75 million shares, signaling confidence in its long-term growth strategy.
The balance sheet remains strong, with R$1.5 billion in net cash and R$1.4 billion in free cash flow generation in 2025.
Return on invested capital reached 14.7%, above the company’s cost of capital, and Renner reiterated its target of reaching 20% ROIC by 2030.
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