Brazilian Retailers "UBS Shopping Cart: Azzas Governance Dispute; Cross-..."

Research evidence excerpt

Brazilian Retailers "UBS Shopping Cart: Azzas Governance Dispute; Cross-..."

Global Research

13 May 2026ab

Brazilian Retailers Equities

AmericasUBS Shopping Cart: Azzas Governance Dispute;

Cross-border tax; IBGE Retail Sales; Abras Consumer, Cyclical

weekly monitoring Vinicius Strano,AnalystCFA

vinicius.strano@ubs.com

+55-11-2767 6688

Another Layer of Governance Dispute at AZZA Isabella Lamas

Associate Analyst

AZZA received yesterday a judicial filing (here) from womenswear business unit CEO isabella.lamas@ubs.com

Roberto Jatahy regarding the management of the men’s apparel business unit. +55-11-2767 6836

Recently, it has been decided (here) the transferring of the Fashion & Lifestyle Men

Lucca Biasi

BU to David Python, CEO of the Basics BU (Hering), while Jatahy would lead the

Fashion & Lifestyle Women BU. According to newsflow (here), the decision allegedly lucca.biasi@ubs.com

reverses previous plans to integrate AR&Co with Grupo Soma’s women’s apparel +55-11-2767 6173

operations — a reportedly 10-month effort that had identified ~R$80m of EBITDA

Pedro Perone

synergies for 2026 and ~R$116m annually thereafter.

The judge acknowledged Jatahy’s request and redirected the dispute to arbitration. pedro.perone@ubs.com

We note that, under the shareholders’ agreement, Clause 6.11 grants Jatahy the +55-11-2767 6007

“exclusive prerogative” to hire and dismiss employees only within the women’s BU,

subject to budget and HR policies. There is no equivalent clause granting Jatahy

authority over the men’s BU (AR&Co/Reserva). From a corporate governance

standpoint, this authority rests with the CEO, Alexandre Birman.

That said, the shareholders’ agreement establishes a two-layer governance

structure and, if the integration project had been formally approved by the Board,