C&A Modas (CEAB3) Q4 2025 earnings summary

Executive summary

• Apparel net revenue in Q4 2025 reached BRL 2.3 billion, up 0.6% year-over-year, and BRL 7.1 billion for the year, up 9.2%.

• Beauty segment net revenue grew 22.6% in Q4 and 46% for the full year, becoming a key growth driver.

• Adjusted net income for Q4 was BRL 269.8 million, up 7.9% year-over-year; full-year adjusted net income reached BRL 470.7 million, up 57.5%.

• Free cash flow in Q4 was BRL 297.4 million; full-year adjusted free cash flow was BRL 843.8 million, up 29.4% year-over-year.

• Ended 2025 with a net cash position of BRL 83.7 million and ROIC of 21.8%, up 5.5 percentage points.

Financial highlights

• Apparel gross margin was 56.7% in Q4 2025 (+0.1 p.p. YoY) and 56.4% for the year (+0.4 p.p. YoY).

• Merchandise gross margin improved by 1.6 p.p. in Q4 and 1.7 p.p. for the year.

• Adjusted EBITDA for Q4 was BRL 431 million (17.4% margin), down 8.1% year-over-year; full-year adjusted EBITDA rose 10.7%.

• CapEx for Q4 was BRL 248 million (up 32%); full-year CapEx reached BRL 546 million (up 51.8%).

• Consolidated net revenue for Q4 was BRL 2,471.6 million, down 3.2% year-over-year; full-year revenue rose 4.5%.

Outlook and guidance

• Expectation of improved assortment balance and normalization of sales and gross margin by Q2 2026.

• Plan to complete 20-25 store renovations and open 10-15 new stores in 2026, focusing on Energia model and prime locations.

• CapEx expected to increase by 15%-20% in 2026, with priority on store productivity and expansion.

• Continued focus on omni-channel journey, digital transformation, and new store formats.

• Ambition to dilute expenses in 2026 despite increased investments.