Americanas (AMER3) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were significantly impacted by the timing of Easter, which shifted to Q2, affecting comparability with Q1 2024 when Easter contributed 32% of brick-and-mortar revenue.

• Despite the seasonal shift, operational improvements continued, with double-digit same store sales growth and ongoing execution of the transformation plan, including new projects like Galeria, Conecta, and Retail Media.

• The company is transitioning from restructuring to growth, focusing on customer-centric initiatives, loyalty programs, and digital transformation.

• Technology upgrades in e-commerce and operational improvements continued, despite macroeconomic headwinds.

• Easter event drove a 1.3 p.p. market share gain, accounting for 32% of 1Q24 revenue, but its absence in 1Q25 impacted results.

Financial highlights

• Same store sales for the first four months of 2025 grew 14.2% year-over-year, normalizing for the Easter effect; excluding electronics, growth was 17.3%.

• Q1 2025 gross profit was BRL 891 million, with a gross margin of 29.1%, both down from Q1 2024 due to the Easter shift and absence of prior year extraordinary items.

• Adjusted EBITDA for Q1 2025 was negative BRL 20 million, reflecting the seasonal impact and lack of extraordinary gains seen in Q1 2024; adjusted EBITDA ex-IFRS 16 was negative R$264 million.

• SG&A expenses (excluding D&A) dropped 10.9% year-over-year and 33% sequentially from Q4 2024.

• Cash and equivalents plus receivables decreased from R$3.0B at 12/31/2024 to R$2.2B at 3/31/2025, reflecting seasonal impacts and working capital changes.

Outlook and guidance

• Management expects continued operational improvement, with each quarter targeted to outperform the prior year.

• The company is focused on growth initiatives, including new product lines, loyalty programs, digital enhancements, and real estate optimization.

• Judicial recovery is expected to last two years, with compliance on track for a timely exit.

• Operational performance, excluding Easter seasonality, shows continued improvement.

• Ongoing execution of recovery and efficiency projects, including assortment review and CRM.