C&A adjusted profit falls 23.3% as tax credits lift reported result

Brazilian fashion retailer C&A reported R$170.3 million in third-quarter profit, up 145.1% from a year earlier.

The increase included recognition of tax credits linked to legal assessments of essential business inputs.

Excluding that effect, adjusted profit fell 23.3% to R$56.5 million from July through September 2026.

Revenue rose 2.3% to R$1.88 billion, while clothing sales at stores open for at least a year grew 1%, slowing from 8.1% a year earlier.

C&A said higher interest rates, household debt and temporary changes in customer traffic weighed on the retail environment.

Its digital sales grew 27.6%, and clothing gross margin reached 56%, helped by pricing measures and early gains from a new logistics strategy.

The company also reported adjusted EBITDA of R$317.6 million, down 4.7% year over year; no further company plans were stated.