Good morning, everyone. We'll start our video conference for Q3 2022 for Lojas Renner. I have Fabio Faccio, CEO, and Daniel dos Santos, CFO. Before I pass the floor. This video conference is being recorded and there is simultaneous translation. We will only have the Portuguese version on the screen. So if you wish to follow in English, you can access in the chat box or on the RI website. Journalist questions can be submitted to our telephone: 11-3165-915. Any statements here about the business perspectives, projections and financial results are beliefs and assumptions based on currently available information, and are not assurances of the future performance involving risks and uncertainties, because there are certain situations that may not occur.
For the Q&A session, you can ask your question through the raise hand button on the Zoom platform or through the Q&A button at the bottom of the screen. Now we'll get started with our presentation, and I pass the floor to Daniel.
Thank you, Carol. Good morning, everyone. Thank you for being here. Let's start talking about our net retail revenue. As we mentioned, the advanced winter transferred a little bit of the results from Q1 to Q2. During Q3, we noticed that this prolonged, elongated winter had a negative impact on the sales results. Even with these two effects, the company was able to have 35% growth versus 19% and 10% compared to 2021. Remember that Q3 2021 was the first quarter of 2021 where stores went back to normal business.
Even with this growth of 10% versus 2021, we still got some gains in the market with about 7 percentage points in July and August, based on the IBGE's numbers. An important highlight here is the Youcom performance in this quarter, with good sales performance. Once again, 27% versus 2021 and about 85% compared to 2019. Now, about our digital performance. The digital channel performance. We still have relevant growth of GMV with an increase of 29.4% compared to 2021. The omni strategy is still a very effective strategy. The clients choose the most convenient channel for them to buy. The digital sales in Q3 grew 14.5%. We continue delighting our customers with a really good navigation, surfing experience with the new app.
We evolved our service level. Today in Q3, we have 80% of all deliveries in São Paulo and in Rio de Janeiro in up to two days and 50% in one day. Our marketplace continues to grow. We currently have about 800 sellers combined with the in Q3, representing 10% of digital GMV. The other channels as marketplace represented here in the Renner favorite B2B WhatsApp channels now represent about 25% of our digital revenue. About gross margin. It was 0.4 percentage points higher than Q3 2021 and -0.5 compared to 2019. In terms of operational efficiencies or the lowest markdown, we were able to come very close to the 2019 levels. Youcom and Renner were pressured due to the spring and summer low sales due to the winter-like situation.
This is explained with the comparison basis. It's a bit weaker in this quarter because we had a gross margin that was a lot lower than the historic average for Camicado. About operational expenses. We had about the same levels of the same quarter in the previous year, representing higher investments in the lifestyle and apparel, the expansions in Cabreúva channels compared to the first and second quarter, where we had the biggest impact of the pre-operational cost impact for the Cabreúva center. We have our two new controls, Repassa and Elo, that were not in the base for the previous quarter, with their OpEx now included in the first quarter of 2022.
Comparing SG&A after 2019, we continue seeing some gain efficiencies through brick-and-mortar stores and digital channels. There's nothing very new in this grid, but what I can tell you is that during Q4 and then the next year, we'll continue to see sequential gains in efficiency. As the business continues gaining scale, our digital channel will gain efficiency with our new DC and also with our new strategy that will start in the next quarter for next year. Our ROI gain also due to the digital marketing investments. The Realize results was impacted with greater defaults during the period, influenced by a macroeconomic scenario with greater debt for families, and continues at an all-time high. Although our stable client base is and versus Q2 2022.
With the over 90 days reflecting this macro scenario that is a lot more challenging and lower default rates and more default risk because we have more conservative credit lines in Realize during the third quarter. We are still very careful with the credit policies, and in our newest portfolios still have good credit behavior, and we believe the over 90 levels that reached the peak in Q3 will start reducing gradually along Q4 and 2023. The increase in net losses reflect greater provisions due to the default rates in the portfolio, especially in November. It's worth highlighting that this 4.2% net loss was impacted by the portfolio sale. The result was BRL 23.8 million.
Because this is an older portfolio, there is no impact in the makeup of the portfolio according to the levels you can see in the report. In summary, the performance of Realize in Q3 is below expectation, but we continue seeing some restrictions in providing credits because the macro scenario has not evolved. We had a perspective going back to granting credits, but the macro scenario did not allow that. We continue with more restrictions. In our expenses and consumption levels, this has maintained basically lower, especially in September. The portfolio closed about BRL 300 million below our expectation, which leads to impacts such as the over-90 share. If we apply these BRL 300 million in the total of the portfolio, the over-90 would be about 1% below the expected level here, 18.6%, 17.6%.
The greater provision values for the overall portfolio is about 18%, which is an advance compared to Q3 2021 and Q2 2022, 4% above Q3 2022. Although there's a slight decrease in the over 90, we feel very comfortable with the provision total that we carry over from the portfolio to face the default levels we have projected. The total adjusted EBITDA for Q3 was 5% above Q3 2021 due to the recovery and the EBITDA for financial products. Net profit was 50% higher than 2021 due to the better performance of the retail segment, with benefits from the fiscal incentives such as investment and lower net expenses. We've had some effects in the results that is worth highlighting here.
One of them is the benefits of the free zone in Manaus with the results from September. We recognize the same results. You can find greater details in our observation notes in our income report. The higher net profit in Q3 will continue to be relevant because of the innovations. We see all the expenses in innovation every year and throughout the year, we take this credit. This was taken in 2021, in 2022 and will continue taking place in 2023 and 2024. The DC Cabreúva is in pre-operation, and in this quarter, we had about BRL 25 million impact in our expenses and the sale of the portfolio that I mentioned before. Move to Q4. Now I'd like to make a few comments about our expectations.
Although we have colder temperatures in October, we are still very comfortable for Q4, pushed by the Black Friday event and Christmas event. Both November and December represent about 75%-80% of the sales in the quarter. November and December, just getting started November now, is the big driver for the Q4 performance. We still have expectations to close 2022 with market share gains and total EBITDA at very similar levels to 2019. In addition, we are getting ready for 2023 and for the growth in the next few years with a focus of increasing profitability gain. As for our ecosystem, there are some highlights for the quarter. First, and very much in line with the omnichannel journey, we have two new stores in the period: seven Renner’s, six brick-and-mortar stores, and one on street and one in shopping malls.
Seven are in locations where Renner did not have physical stores, brick-and-mortar stores. We have 30 openings by the end of September, with around 40 new stores by the end in the year. By November, we'll open 10 more stores. As for the digitalization process for our stores, we had important advances with the expansion of new channels and with better experiences for our customers. With 111 stores, of which 88 were implemented this year. By November, we'll have 134 with self-checkout. Now to increase innovative products, we have launched our digital financial platform and Orbi and Orbi Bank to drive the ecosystem. This reinforces our relationship with our customers, including Renner, Camicado, Youcom, Ashua, and operations of Realize.
As for the Cabreúva DC, we have started the system integration, and the Camicado operation is now 100% stabilized, and the performance indicators are now moving forward with the Camicado brand. Renner now became the Brazilian retail store with the highest number of followers on Instagram. We generate desire and fashion information content to connect customers with the brand. The social network visits increased compared to the same quarter, 2022. As for the indicators for our ecosystem journey, we had a relevant increase from 2022, 2021 and 2022. We still have a long way to go to reach our objectives and targets, but we were able to increase our digital service with our client base has continued growing with about 19 million new customers. Our online service levels with deliveries, as I mentioned, are still growing.
B+2. In total, around Brazil is at around 25.1% of deliveries in B+, B+2. Our goal is to reach 70%-80% of all deliveries. For reconditioner in São Paulo, as I mentioned, we are at around 80%. Our main customers increased as well, with 2.1% in total, now representing 30% of sales. As for the cost to attract digital customers, the CAC is dropping and should continue to drop in the next quarters. For service revenue and Orbi Bank, we believe that it will continue to be relevant in the next quarters. Now let's get started our Q&A session.
Remember that to ask your question, you may raise your hand with the rais e hands button on Zoom, or you can submit your question in writing to the Q&A box. Please ask all your questions at once. Let's get started with the audio questions. The first question is from Thiago from Itaú BBA.
Hi, guys. Good morning. Thank you for allowing me to speak. I have two questions. You mentioned that the new DC had a negative impact on expenses, and I believe around BRL 20 million-BRL 25 million. Is there any duplicity in terms of rental in Q3? And consequently, would it make sense to consider lower expenses for the next period when this duplicity is eliminated?
My second question, it's very reasonable to say that the sales in Q3 was impacted by the climate, but I imagine that August might have been a better month. Can you point us to how much better August was compared to the rest of the quarter to try to maybe mentally figure out how much the climate has affected you? Thank you.
Hi, Thiago. Good morning. This is Fabio. Actually, the quarter, I would say September was a bit more impacted. July and August, as Daniel mentioned, we anticipated some of the sales that was very positive for Q2 as according to our results call for Q2. But this anticipated some of the winter sales in July and August, but it could have been better.
In September, which is a month where we start to transition the different collections for spring and summer, usually, with higher sales. There was an impact from the cold temperatures that helped us with the fall line, but actually hinder the spring line. On average, I would say that September was a bit outside of the curve. In terms of the DC, there is some duplicity, especially because now we are in a pre-op phase for the DC. We have part of the operations already functioning, and the new area is only operational for Camicado. For apparel, we're still testing, and now we are going to start our operations testing in November and December. This duplicity does exist, but I'll let Daniel explain the future expectations.
It will continue for some time for Q4 and Q1 and Q2 next year because we already have people in training. We're already testing equipment, so we start paying rent, but we cannot close, the other parts of the operations and still collect all of the benefits from when the DC is fully operational. This effect will start to drop and to slow down as of Q3 next year when we start closing down the operation of the old DC.
Yes, very clear. Fabio and Daniel, thank you for your answer. Thank you.
Our next question is from Thiago Suedt from XP. Go ahead, Thiago.
Good morning, everyone. Thank you for answering our questions. I think from our side, we have two topics that we would like to address with you.
Starting with the income tax, I think you mentioned some of the benefits and the effects. Our question is just to try to understand a little bit more in terms of what we can expect for the magnitude of these effects, and if this should be considered a new level of the effective rate in terms of income tax. Realize, you also mentioned some of the expectations to evolve the over 90. We just wanna understand if there are more opportunities to sell portfolios since that you might have mapped or if this was just a one-off thing you did and we should not see in the future.
Thiago, thank you for your questions.
To talk a little bit about Realize, to start with your second question, we sold 1/3 of our portfolio above 360 days. Yes, we still have part of this portfolio that could be sold. We still have 2/3 of this above 360 days that could be sold and that have already expired. We are looking at this, but it can happen that we can focus on the newest recovery groups above 180 and to reinforce our recovery efforts. We have two things, Thiago. One, this thing has been recurring. I think we've already discussed this at other points.
The other thing to bring that we'll have this every year, more specifically in 2022, it was a bit higher versus 2021 due to our higher investment in innovation. This innovation and investment, we believe will be stable from now on. We believe it will be recurring the next year as well. As we close one period, we calculate the results, and we can take credit for the next year. We can borrow credit for the next year. Thank you.
The next question is from Ruben Couto from Santander. Go ahead.
Good morning, everyone. It's been very clear that the EBITDA 2022 would be similar to 2019. Looking at the first nine months performance for Realize and expectations to grow retail similarly in Q3 to reach this EBITDA demands an accelerated recovery retail levels.
Is there anything specific that makes you a bit more confident in where we should see this expectation actually taking place?
Thank you for your question, Ruben. Daniel can give you some more details, but I would say that in general terms, on the expectations that we had at the beginning of the year, we have seen that Realize has a bit more difficulty, a bit below our expectations due to this more challenging scenario due to default rates. If we think about our own projections that we had in the beginning of the year, Realize tends to have worse results than our actual expectations. Q3 was a lot better than our initial expectations.
Even with more challenging scenarios, be it with the climate, temperatures or sales differences, we are still able to reach a good market share, a gain and good sales levels. Now, even if Realize has some very specific situations in the last month and in this quarter, we do expect the gradual recovery in retail for Realize.
What I would say is that when we look at last year, first, we have a better gross margin than the year before that. Automatically that is a good contributor to this improved performance. Second, both November and December, like I said, are 75%-85% of the sales for the quarter. The effect will scale. No doubt this will provide efficiency gains. This combined effect allows us to come close to this 2019 level.
What we expect is that the gross margin will be better. This growth, this scaling that we expect to see in November and December. I think these are the big levers to actually reach our expectations despite the Realize performance, as you mentioned.
Our next question is from Joseph Giordano from J.P. Morgan. Go ahead, Joseph.
Hi, good morning, everyone. Fabio, Daniel, Carol. I'd like to touch on two points here. First, in about Realize. I'd like to understand, when we look at these portfolios, can you please explain to us what you're usually able to recover from these default portfolios in terms of efforts versus selling these default portfolios? That's my first point. Second, we saw a very strong growth in September, as you mentioned.
Well, the climate got in the way, but I'd like to understand how you see the competitive landscape. Of course, the climate is the same for everyone, so everybody's suffering the same effect. How do you see the gain, the number of baskets sold in shopping centers? How do you see the evolution of the company in the future?
Let's start with your second question. Thank you for your question. The competitive landscape, we do know that there's some loss in competition. I think there are fewer competitors in the overall scenario, especially with the smaller ones. We've been seeing this since the beginning of the pandemic, since the beginning of the crisis, with many smaller retailers getting weaker and some other actually big retailers without so much strength.
I would say that the competitive landscape is now less aggressive, I would say, which helps us to gain market share. According to our monitoring, both from the IBGE data and internal monitoring, we are still gaining market share, partially due to this weakened competition and also due to all of our investments in products, operations and omnichannel. That is now bringing increasing gains for us. Although there are some difficult scenarios, such as the climate in September, but we still are gaining more market share even if we had a more stable scenario. If I understood your question between us trying to recover all of this credit and actually selling, I think this is what you wanted to understand.
Our history has been for Realize has been keeping these default portfolios and trying to collect and trying to recover. This also depends on the economic scenario we have at the moment. Our thought was there was a lot of operational effort and management efforts to try to collect and to recover these default portfolios. With experience from other companies, we thought it would make sense to organize this in a way to sell this portfolio, to focus our energies in the fresher, let's say, portfolios, so we can have better collection rates and recovery rates and focusing more on operations. Now that Realize is growing with several other opportunities, we made this decision to focus on the short term portfolios, and when we notice a good opportunity, we can sell these default portfolios.
That was our rationale to decide on selling this. Just to add, I think the recovery rates are higher in the younger aging portfolios. We have the lowest with the longer, the oldest aging portfolios, the recovery rates are usually lower.
Next question is from João Pedro Soares from Citibank.
Thank you. I have two questions. The first one, when we look at 2023, you have a very clear plan to grow top line in the short term or medium term, around 15% is the magic number. Looking at the next year, we might have an important pulling down in prices, because this year we saw a lot of price increases.
In 2023, my question is, how do you see this component reflecting the top line growth for next year? That's my first question. Second is about the margin recomposition. Although we have this top line growth very clear, we still have some difficulty looking at the horizon of recomposing, recomposition of margin. If you could share your perspective, that would be great.
Thank you, João . The growth from 2023 onwards, it's very difficult to set a number. With all of our investments, our expectation with the investments for service level, omnichannels and expansion, to be able to grow both physically and digitally, not only in price but in volume as well, which is an important component. We imagine that we have the potential to grow even higher than the average in the pre-pandemic years.
Part of this is connected to price, and price is very much linked to inflation. All the rest would come from volume or productivity gains in our existing stores. Increasing our productivity in our existing stores and growing sales on the digital channels and expanding the new stores as well. About margin.
I can talk about margin. We have two things. When we look in the future, when we think about inflation, be it due to the FX rate or inflation, we do expect a more comfortable year, which helps us to recompose our gross margins to get closer to the 2019 level. Also I always say that one of the big offenders of our retail margin is the SG&A profit. Remembering that other slide I show you, we have scale gains for the business.
When we gain productivity with the existing stores, we continue with our expansion plan. This allows us to gain volume. The other point is efficiency gains in our digital operations. We have a new DC that will be operational as of Q2 next year. We'll have parts of this efficiency gains, about 3%, gain in margins in digital just from the new DC and then our transit point strategy as well, to improve our gains in marketing digital margin. We believe that in two to three years our SG&A levels will be very similar to the brick-and-mortar stores. Combining all of these facts, we believe that in two to three years we'll be able to reach a level of retail margins very similar to 2019.
This is in the conferences and talks and discussions that we've had. We continue with the same plan.
Very clear. Just the last point. Can you quantify the duplicity of the DC just to give us an idea?
Well, this quarter it was BRL 25 million. We believe about BRL 70 million - BRL 80 million, the accrued level for this year. We believe that it will be the same for next year between BRL 70 million - BRL 80 million . Of course, the evolution of the DC will allow us to have a final number, a final figure, but BRL 70 million - BRL 80 million.
Okay, great. Thank you.
Next question from Vinicius Strano from UBS.
Good morning, everyone. Thank you for answering my question.
You've been evolving a lot in terms of technology and data, so I'd like to understand how this has been contributing to your product lead time and how this has been translating in gross margin. Maybe in the long term, how do you see opportunities to go back and expand gross margin at levels even higher than 2019 to leveraging all of these initiatives? How are you getting ready for Black Friday here in terms of assortment and product customization and actually promotion appetite and credit loans for the event?
Thank you, Vinicius. As for data, I think this is essential and both for product lead time and in the margin evolution.
If you think that we had a very high pressure of cost pressures in the former quarters and months, and we were able to offset a lot of this with some markdowns, even with the climate differences, with good sales before and now towards the end of the third quarter with lower temperatures, you have a higher participation, a higher share of it, just a few items, but the margin gets worse. We still were able to reach margins very similar, very close to the 2019 levels using data, distributing the right product, allocating the right product. We also have really gained more efficiency in buying more the right product and now with pricing.
Part of the evolution in terms of the data will be better perceived as of the next quarter and next year, when we will also be able to scale on our new DC to gain even more efficiencies, especially in distribution, in quick distribution with better lead times to make these products available directly or through stores with a higher granularity of the SKU. In terms of data, this is helping both in our internal decisions and operations, and we expect to see even more gains in the next years. As for Black Friday, I think this is an important event for us, especially in the digital channels. The physical channels are important as well, but the Christmas event is a lot more relevant, and Black Friday has more relevance in the digital channels.
We're starting to get ready with a bit of a different strategy from last year, especially due to the World Cup, because we now have another competing event for the first time during this time of the year. We have created a strategy, especially in the digital channel, to have certain promotions that we're getting ready for, buying products and with the margins to have a positive event with very healthy margins. I think you also asked about gross margin. What I can say is that there are opportunities, but just to mention a few points. On the one hand, when we look at the Youcom growth, which was a faster growth than Renner, it is because of the brand. We have a mix effect that helps. When we move over to Renner itself, Fabio mentioned the intelligence applied for fulfillment.
On the other hand, we also have the efficiency and success of our collection. We know that a good contributor for gross margins is the markdown levels, and this links to the good fulfillment of the stores. Renner is evolving and gaining efficiency. When we look at our product mix offered in stores, when you can offer the right appropriate mix with the markdown levels, with the lower markdown levels, that is a good lever for margins. We still believe that we could do more, although we are basing these results on the best results in 2019, that doesn't mean that that is the limit. There are several things that need to work well to allow us to advance.
I would say that yes, there are some other levers and we're working on them to be able to increase our 2019 levels. Thank you.
Next question from Irma Sgarz from Goldman Sachs. Go ahead, Irma.
Good morning. Thank you for answering my question. Just a question about gross margin. I know we talked a lot about it, but just to confirm, although your Q3 closed with a bit higher stock levels, as far as I understand, you don't see any specific risk for greater markdowns, I don't know, necessarily in Q4 or maybe Q1 next year when you have these promotions. But just to understand the current stock levels or if there's some part of this that is due to the DTC.
About Realize, what is the risk appetite for you towards the end of the year and the beginning of next year? Do you feel that the customers that are now maybe more stable, having better buying power or how do you feel? How do you feel that your customers depend on the emergency welfare checks or? Of course, I know that you have lowered your risk, but I just wanna know what you're actually feeling.
Thank you for your question, Irma. About margin, this higher stock levels is an effect of the anticipation, especially with imported products, because we were afraid due to several fragility points that we had throughout the year just for the imported product supply.
We were afraid that there might be a certain rupture during a very important part of the year, so we had the imported products with a longer lead time to prevent any rupture. We didn't see any rupture, and the supply chain was very agile and efficient. Both production and arrival of the products were shorter than we expected. This is new stock. This is new inventory. Although it might have a higher weight right now, but in our projections, this should go back to normal throughout the quarter. It is the new inventory that we need now, so lower risks of markdowns. Of course, we have 75%-80% of sales that still need to happen, so it really depends on the performance of the next month.
We have positive expectations, but we don't see any risks for old inventory at this point. This is just new inventory due to anticipation. About Realize and risk appetite. When we talk about risk appetite, I think we need to understand that the economy is still very fragile due to the default level. We gradually start bringing in new clients, new customers, using our strategy with our for our private label. We know that it's just for them to buy in Renner and try to really pump some oxygen to our portfolio. As we see some improvement, we upgrade this to the card. That's our strategy. We have seen. We have been observing the market to understand the speed of these movements, and this will depend on how we see the default levels.
Okay. Thank you.
Next question is from Vinicius Pretto from Merrill Lynch.
Good morning, everyone. Thank you for answering our questions. Now, still on the credit operations dynamics, you mentioned that you can see better performance of these newer portfolios. How much is this due to the improvement of the consumer health, and how much is this an effect of the mix of customers when you compare to the pre-pandemic level? How is the credit concession levels compare to the pre-pandemic levels?
I can answer that. Well, there's an effect of both, because when you restrict concession and have a customer base coming in, being approved with stronger filters, your default rate is reduced. At the same time, we have customers that have already been in our portfolio that don't get affected by the restricted credit.
We have greater restrictions than the pre-pandemic times, but we might. I don't have all the figures, the numbers here with me, but we still have a higher restriction level than what we had pre-pandemic. We don't believe that we will go back to those levels in 2022. As I mentioned, we'll see this new strategy of bringing in new clients to our private label, but it's still too early to say that we'll have the same levels that we had in the pre-pandemic times.
All right. Thank you.
Our next question is from Alexandre Namioka from Morgan Stanley. Go ahead, Alexandre.
Good morning, everyone. Thank you for answering my question.
I think most of the questions have already been answered, but I just wanted to know a little bit more about the economics of the street stores because you're concentrating your expansion in this format of stores. Could you just talk a little bit about the economics and if you can compare this by region? Because when we look at these street store bases, they are much more concentrated in the South than in the total base. I just wanted to understand what the economics by region looks like.
Thank you, Alexandre. Actually, this is an important question because we've been mentioning this expansion plan, but this is a very important moment for the company. This is something we had been expecting to come in, and we've been doing gradually along the years, and it's just being intensified now.
This is a very healthy expansion for us. When we are asked about the economics for these stores, in general terms, people sometimes focus too much on either street stores or shopping malls, but we're talking about small cities that sometimes don't have a shopping mall. In some cases, it's hard to say that if it's a street store or a store within a mini mall, but we have some cities in the country with a very relevant demand for us, with a target audience that is very relevant for us. These have been some of our best performances on average, above average. We don't compare performance per region, but they have had a performance above average.
Daniel can share some numbers, but the expansion plan goes through some specific regions with an important concentration in the South, but also in the Southeast, Midwest, in São Paulo, Paraná, Santa Catarina, Mato Grosso, Mato Grosso do Sul, and some others, in the northernmost regions. Go ahead, Daniel.
As you said, we are preparing some material, and we'll try to provide more details in our next conference, just to give you a bit more details about this strategy. But when we take our current basis with this exact profile, so cities in the countryside, interior city, in interior Brazil, above cities with, average income above the average, the national average. These are stores where we see great potential for consumption and where we have applied this strategy.
The speed to reach a maturity level of stores is much higher than the other areas, partly because the occupational cost is lower. We see that the economic equation for these stores is superior than the average of the average stores around Brazil. Due to the speed of growth for these stores and the levels of profitability and the ROIs are better than the average we have today. We're talking about maybe 12, 13 stores that we have applied this exact strategy and logic. Makes us very confident that this is the right strategy for growth and profitability.
Just to add to this, there's also an important part here. Daniel and I are talking about each store on its own.
Each standalones are with results that are higher than the average from the same level of kind of stores. In addition to that, we also need to look at. These are new stores, new locations, and we have two other positive effects. In addition to being above average, they don't cannibalize anything else around. They don't reduce or impact results from other stores. They just add 20%-30% to the online sales for that store. I think the economics for the store on its own, without any additional online sales, is above average. It's a totally additional sale without cannibalization, and it increases 20%-30% online sales for the city. That's why we're very happy with this new expansion line, and that's what we believe in moving forward.
Perfect. Thank you so much.
Thanks, Alexandre.
Next question, Rafael Ito from Safra Asset. Rafael? I think he might have dropped. We also have a question from our chat from Luiz Guanais about the economics of shopping malls versus street stores. I think we've already answered that. With that, I will pass the floor to Fabio and Daniel for their final remarks.
Thank you, everyone. Thank you for this call. I think we had a shorter presentation to have more time for questions, and I really liked this format. Thank you all for your questions. Strong Q4 in sales. Thank you, everyone, for participating. We truly believe that despite all the short-term challenges, difficult scenarios, we have a company that is very well-prepared for any situation. We still believe in gaining market share, gaining market, and a gradual recovery of our results.
From now on, we believe that especially 2023 forward, moving forward, we will see good growth with an even better recovery of results due to everything we've been doing in the last few years to provide positive results, to delight our customers, engage our teams, and consequently have better results for our shareholders. Thank you, everyone. Have a good weekend.