Lojas Renner reports 59 percent increase in net profit in Q1 and shares rise

Last Friday, May 9, Lojas Renner (LREN3) shares closed on the B3 stock exchange up by 4.92 percentage points, at 16.20 Brazilian real. The increase occurred after the company’s first quarter report, released the previous day, May 8, which reported a net profit of 221 million Brazilian real, 58.7 percent higher than the same period last year.

The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled 585.2 million Brazilian real, representing a 55 percent increase compared to the same period in 2024. The adjusted retail EBITDA was 394.7 million Brazilian real, an increase of 8.3 percent, with a reduction of 0.5 percentage points in the margin, totalling 14.3 percent.

Retail net revenue was 2.76 billion Brazilian real, up 12 percent compared to the same period last year. The consolidated retail gross margin grew by 0.6 percentage points, reaching 55.1 percent. Digital sales rose 15 percent, which demonstrates consistency in the omnichannel strategy. Sales in the same stores went from 7.2 percent in 2024 to 10.8 percent in 2025.

Expenses and investments

Operating expenses were 1.14 billion Brazilian real, an increase of 8.6 percent compared to the first quarter of last year. 61.6 million Brazilian real was invested in the period, focusing on remodelling stores and technology systems.

Free cash flow generation was 74 million Brazilian real, 113 million Brazilian real below that recorded in the same period of 2024. This was due to the allocation of resources to stock, with approximately 500 million Brazilian real also used for share buybacks.

According to chief executive officer Fabio Faccio, the company is prioritising accelerating the business model, “reinforcing the commitment to sustained long-term growth, with profitability and value generation,” he said at the results video conference on May 9.