Brazil · Delayed Price · Currency is BRL C&A Modas Earnings Call Transcripts
Fiscal Year 2026
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Net revenue rose 5.6% year-over-year, with digital sales up 33.3% and record apparel gross margin of 59.1%. Adjusted net income reached BRL 130 million, and ROIC was 20%. Inventory and cash cycle are expected to normalize by year-end, with continued focus on value-driven growth and disciplined capital allocation.
Fiscal Year 2025
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Q4 2025 saw modest apparel growth and strong beauty performance, with record annual net income and margin expansion driven by strategic transformation and the phase-out of smartphones. The company plans increased CapEx, store renovations, and new openings in 2026, targeting further productivity gains.
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Apparel and beauty segments drove strong revenue and margin growth, with adjusted net income up 41.7% and robust cash generation reducing leverage to 0.1x. Store renovations, digital enhancements, and the new Energia model are fueling performance, while disciplined capital allocation supports future expansion.
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Second quarter saw 17% same-store sales growth in apparel, 113% rise in adjusted net income, and record cash generation, with strong digital and beauty category performance. Leverage dropped to 0.3x, and investments in logistics and store expansion are set to accelerate.
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Apparel and beauty drove double-digit growth, with gross margin and EBITDA margin expanding year-over-year. Strong cash generation, reduced leverage, and disciplined capital allocation supported new store openings and digital gains, while credit quality remained robust.
Fiscal Year 2024
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Delivered record growth in Apparel and strong financial results, with same-store sales up 14.4% in Q4 and gross margin at 56.6%. Strategic investments in digital, store renovations, and the Energia C&A strategy drove operational efficiency and customer satisfaction.
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Net revenue rose 16.7% to BRL 1.8 billion, with same-store apparel sales up 18.9% and gross margin at a record 55.1%. Adjusted EBITDA grew 55%, net income reached BRL 52 million, and C&A Pay expanded its portfolio and profitability. Strong brand repositioning and operational discipline support continued growth.
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Apparel same-store sales rose 15% and beauty net revenue jumped 71%, driving margin expansion and a reversal to net profit. Operational discipline led to strong cash generation, reduced leverage, and continued investment in omnichannel and store growth.