Lojas Quero-Quero (LJQQ3) investor relations material

Executive summary

• Gross revenue grew 3.3% year-over-year to BRL 790.2 million in Q1 2026, driven by financial services and credit card segments, despite a 2.5% decline in same-store sales and weaker demand for seasonal items.

• Net loss widened to BRL 61.7 million from BRL 31.1 million in Q1 2025, with adjusted net loss at BRL 35.5 million.

• Opened two new stores and closed 14, ending the quarter with 574 stores in 493 cities.

• Digital and phygital initiatives contributed 23% of total sales, reflecting ongoing digital integration.

• Focused on five strategic pillars: market share, credit excellence, operational efficiency, digital sales, and high-performance culture.

Financial highlights

• Net operating revenue increased 3.7% year-over-year to BRL 696.4 million.

• Gross profit increased 8% year-over-year to BRL 222 million, but gross margin declined to 29.0% from 30.9% in Q1 2025.

• Adjusted EBITDA dropped 95.4% year-over-year to BRL 0.6 million, with margin at 0.1%.

• Net margin was -8.9% versus -4.6% in Q1 2025.

• Financial services revenue increased 13% year-over-year, with credit card revenue up 13.1%.

Outlook and guidance

• Management expects gradual interest rate declines and expanded tax exemptions to support sales recovery and benefit the agricultural sector.

• Guidance for fewer new store openings in 2026, with CapEx halved year-over-year to preserve cash flow.

• Focus remains on operational discipline, portfolio quality, and capital efficiency.

• Ongoing efficiency initiatives and cost control to mitigate inflationary pressures.

• Continued focus on credit portfolio growth and maintaining controlled delinquency rates.