Brazilian Retailers "UBS Shopping Cart: SMFT Buyback Program; Consumer c..."

Research evidence excerpt

Brazilian Retailers "UBS Shopping Cart: SMFT Buyback Program; Consumer c..."

Global Research

25 May 2026ab

Brazilian Retailers Equities

AmericasUBS Shopping Cart: SMFT Buyback Program;

Consumer confidence; Tax reform Consumer, Cyclical

Vinicius Strano, CFA

Analyst

vinicius.strano@ubs.com

Smart Fit announces share buyback program of up to 2.5% of total shares +55-11-2767 6688

Smart Fit announced a new share buyback program with a duration of up to 18 Isabella Lamas

months (until November 25, 2027). The company may repurchase up to 13.6m Associate Analyst

shares, equivalent to approximately 2.5% of its total shares outstanding. According isabella.lamas@ubs.com

to Smart Fit, the repurchased shares may be held in treasury for subsequent +55-11-2767 6836

cancellation or resale in the market, with the objective of enhancing shareholder Lucca Biasi

value and maintaining disciplined capital allocation. Associate Analyst

lucca.biasi@ubs.com

May consumer confidence -0.3 p.p. MoM (+1.1 p.p. YoY) +55-11-2767 6173

According to FGV, the seasonally adjusted Consumer Confidence Index (ICC) Pedro Perone

decreased -0.3 p.p. MoM to 88.8 points in May (vs +1.0 p.p. MoM in April). This result Associate Analyst

was mainly driven by expectations for the coming months (IE), which fell -1.0 p.p. pedro.perone@ubs.com

MoM, while current perspectives (ISA) increased +0.8 p.p. MoM. In the annual +55-11-2767 6007

comparison, May consumer confidence increased +1.1 p.p. YoY driven by an

increase of +1.9 p.p. in current perspectives (ISA) and +0.4 p.p. in expectations for

the coming months (IE).

Companies expect higher taxes under tax reform

According to a survey conducted by Deloitte, 51% of companies expect the tax

reform to increase their tax burden, which could lead to either price pass-through