# Riachuelo posts record  results with 63% profit surge and historic EBITDA margin

*Higher fashion margins and strong financial-services arm drive best third-quarter performance in seven years.*

- Published: 2025-11-05
- Section: Insights
- Tags: Guararapes, Riachuelo
- URL: https://brazilstockguide.com/insights/riachuelo-3q25-results-record-profit-ebitda-margin/

![Riachuelo, Guararapes](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/11/Riachuelo.webp?fit=1024%2C576&ssl=1)

*Riachuelo, Guararapes*

**By Brazil Stock Guide –** Riachuelo (B3: GUAR3) delivered record earnings in the third quarter of 2025, underscoring the payoff of its ongoing transformation plan that integrates fashion retail and financial services. The company’s adjusted consolidated EBITDA rose **14.8% year on year to R$402 million**, while net income jumped **63% to R$74 million**, marking the highest level in its history for the period.

### Record Operating Margins

The retailer reported its **eighth consecutive quarter of margin expansion** in apparel, with gross margin climbing **2.5 percentage points to 57.3%**, the strongest in its series. Consolidated EBITDA margin reached **16.4%**, up from 15.2% a year earlier. Management highlighted productivity gains from its integrated supply chain and better pricing discipline as key drivers of the improvement.

Revenue grew **6.6% year on year to R$2.45 billion**, supported by a **7.3% same-store sales increase in apparel** and strong seasonal collections such as Pool + ALPV and Giullier + Riachuelo. The results also reflected **nine straight quarters of positive apparel SSS** and **ten consecutive quarters of market-share gains**, outperforming the national apparel retail index (PMC/IBGE).

### Solid Financial Services

The Midway-branded financial-services arm continued to add resilience, with **EBITDA up 6.5% to R$119 million** and net revenue rising 9.2% to R$618 million. The **delinquency rate above 90 days fell to 17.7%**, from 19.8% a year earlier, amid disciplined credit growth and new accounting standards that extend interest recognition. The credit portfolio reached **R$6.2 billion**, led by R$5.0 billion in cards and R$790 million in personal loans.

### Cash, Debt, and Investment Cycle

Riachuelo ended the quarter with **R$1.1 billion in cash** and net debt of **R$839 million**, equivalent to a **0.5x net debt/EBITDA ratio**, highlighting its conservative leverage. In October, parent company Guararapes issued **R$1.45 billion in debentures at DI+0.95%**, aiming to extend maturities and lower funding costs.

Capital expenditure jumped **39% year on year to R$158 million**, reflecting store expansion, logistics, and technology upgrades. The company also distributed **R$58.8 million in dividends**, or R$0.1177 per share, using retained earnings from 2024.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/riachuelo-3q25-results-record-profit-ebitda-margin/