C&A Modas (CEAB3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 6.2% year-over-year in 1Q26, with apparel same-store sales up 4.8% and a two-year cumulative net revenue increase of 22.7%.

• Digital net revenue surged 29.2% year-over-year, with digital penetration up 1.5 percentage points and e-commerce reaching 7.0% of merchandise revenue.

• Merchandise gross margin expanded by 2.3 percentage points and apparel gross margin by 0.9 percentage points compared to 1Q25.

• Quarterly net income pre-IFRS 16 increased 77.7% year-over-year; adjusted net income (post-IFRS 16) rose 218.7%.

• Announced a 4th share repurchase program for up to 10 million shares, about 5% of shares outstanding.

Financial highlights

• Adjusted EBITDA reached R$116 million with a margin of 7.2%, down 6.3% from 1Q25 (pre-IFRS 16); post-IFRS 16 adjusted EBITDA was R$244.6 million (15.1% margin).

• Adjusted net income margin improved by 0.4 percentage points to 0.8% in 1Q26.

• ROIC for the last twelve months was 20.9%, up 2.8 percentage points from 1Q25.

• Total CAPEX rose 51.5% year-over-year, totaling R$62.2 million, with significant investments in renovations, supply chain, and logistics automation.

• Reported net income dropped 59.1% year-over-year to R$1.7 million.

Outlook and guidance

• 20-25 store refurbishments planned for the year, with 12 already underway; 10-15 new stores planned, 4 in progress.

• Continued focus on omnichannel strategy, digital transformation, and efficiency gains.

• Final year of Energia C&A strategy, emphasizing assortment accuracy, technology, and customer connection.