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Guararapes Confecções (GUAR3) investor relations material
Guararapes Confecções Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record net income of R$5 million in Q1 2026, reversing losses from prior years and marking the first Q1 profit since 2020, with 11 consecutive quarters of double-digit apparel same-store sales growth at 10.1%.
Apparel gross margin expanded for the 10th straight quarter to 54.9%, up 1.2 p.p. year-over-year, and retail EBITDA margin reached a nine-year high at 8.1%.
Consolidated EBITDA reached R$268 million, up 14.1% year-over-year, with an 11.5% margin.
Transformation initiatives included new leadership, strategic board creation, and operational improvements, with a focus on growth, efficiency, and modernization.
Financial Services segment posted EBITDA of R$133 million, up 5.8% year-over-year, with portfolio expansion and controlled risk.
Financial highlights
Consolidated net revenue grew 6.7% year-over-year to R$2.32 billion, with consolidated gross profit up 8.6% to R$1.42 billion and gross margin at 61.2%.
Apparel same-store sales grew 10.1% year-over-year for the 11th consecutive quarter; cumulative three-year growth near 40%.
Retail EBITDA was R$135 million (+23.7% YoY), with an 8.1% margin, the best in nine years.
Financial Services EBITDA reached R$133 million (+5.8% YoY); credit portfolio up 12.9% YoY to R$6.0 billion.
Net income was R$5 million (vs. loss of R$45.9 million in Q1 2025); net margin: 0.2%.
Outlook and guidance
Plans to open 15–20 new stores in 2026, maintaining disciplined return thresholds (25% retail, 30% with Midway), and ongoing modernization and expansion of apparel gross margin.
Continued focus on expanding apparel gross margin and growing Midway's share of EBITDA and net income to 30%.
Ongoing investments in logistics automation, with expected SG&A and margin gains from 2028.
Net income growth projected to outpace EBITDA growth, with ongoing increases in return on capital.
Optimistic about Q2 and Q3 despite weather-related sales fluctuations, citing improved supply chain flexibility.
- Record profitability, margin expansion, and strategic asset sale drove robust 2025 results.GUAR3
Q4 202512 Feb 2026 - Record EBITDA and margin gains led to sharply reduced net loss and strong retail growth.GUAR3
Q1 20253 Feb 2026 - Record EBITDA, margin expansion, and leverage reduction highlight robust 2Q24 performance.GUAR3
Q2 20242 Feb 2026 - Record EBITDA, margin gains, and net income reversal highlight strong Q3 performance.GUAR3
Q3 202415 Jan 2026 - Record EBITDA, net profit turnaround, and sharp deleveraging highlight 2024 results.GUAR3
Q4 202426 Dec 2025 - Record net income up 151.2% and margin expansion driven by strong retail and financial services.GUAR3
Q2 202523 Nov 2025 - Record quarter: net income up 63%, EBITDA margin at all-time high, leverage at 0.5x.GUAR3
Q3 202513 Nov 2025
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