Business · Companies · 8 hrs ago
Riachuelo’s third-quarter profit rises 61.3% to R$85 million
Brazilian retailer Riachuelo reported R$85 million in third-quarter profit, up 61.3% from the same period a year earlier.
Its clothing sales at stores open for at least a year rose 6.5%, marking a 13th consecutive quarter of growth.
Clothing revenue increased 8% to R$1.6 billion, and the category’s gross margin reached a third-quarter record of 58.1%.
The company said stronger sales, better margins and lower debt costs helped lift its overall results.
But late payments at its Midway financial arm increased: the share of loans more than 90 days overdue reached 19.4%, while provisions for bad debts rose 20.3%.
Riachuelo’s chief executive said high interest rates and household debt are making consumers more cautious.
The company plans to buy and produce more cautiously for 2027, while watching the economic outlook.
Riachuelo reported third-quarter 2026 net profit of R$85 million, up 61.3% from the same period in 2025 excluding Midway Mall.
Exame reported the profit as R$84.9 million and said the increase was 15.4% when Midway Mall was included in the year-earlier comparison.
Net revenue rose 3.5% to R$2.5 billion, while EBITDA increased 7.9% to about R$405 million.
Clothing same-store sales grew 6.5%, the 13th consecutive quarterly increase, and the category’s gross margin reached 58.1%.
CEO André Farber said high interest rates, inflation and household debt were making the consumer environment more challenging.
- Who
- Riachuelo, the Brazilian retailer, reported the results. Its CEO is André Farber.
- What
- Third-quarter 2026 net profit rose 61.3% to R$85 million. Exame reported R$84.9 million.
- When
- The results were for the third quarter of 2026 and were published on November 9 and 10, 2026.
- Where
- Not stated.
- Why
- The company cited stronger clothing sales, improved margins and lower debt costs.
This story does not have two clearly opposing sides.
Riachuelo began the business transformation strategy that the company said was continuing.
Clothing same-store sales grew 10.1%.
Clothing same-store sales grew 7.8%.
Riachuelo reported higher profit and 6.5% clothing same-store sales growth.
Exame and CNN Brasil published reports on the results.
- Net profit
- R$85 million according to CNN Brasil; R$84.9 million according to Exame
- Net revenue
- R$2.5 billion, up 3.5%
- EBITDA
- R$405 million according to CNN Brasil; R$405.4 million according to Exame
- Clothing same-store sales
- Up 6.5%, the 13th consecutive quarterly increase
- Clothing gross margin
- 58.1%, a record for a third quarter
- Profit comparison
- Up 61.3% excluding Midway Mall from the year-earlier comparison; up 15.4% including it in Exame’s comparison
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What people are saying
We continue with consistency in our strategy, with good results, but we are watching the macroeconomic scenario cautiously.
The consumer does not have infinite demand; they substitute. When they have a cheaper product that does not pay tax, they can indeed make a substitution.
It is not just one thing, but it comes from a lot of consistency, a lot of belief in our initiatives.