Brazil Apparel: MULT‘s Anchor Stores Performance Suggests Upside Risk to Apparel Retailers SSS

First-page research excerpt

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31 Jul 2026 09:31:53 ET │ 19 pages

Brazil Apparel

MULT’s Anchor Stores Performance Suggests Upside Risk to Apparel

Retailers SSS

CITI'S TAKE

We analyzed MULT’s apparel anchor store performance in Q2'26 to gauge

the likely results of Brazilian apparel retailers, particularly fast-fashion

names LREN, CEAB, and RIAA. LREN has shown the strongest statistical

relationship with MULT’s apparel anchors since 4Q'23 (R² 0.8). MULT’s

apparel anchors posted SSS growth of 5.6% in Q2, accelerating from

2.1% in Q1, supporting our view that favorable winter weather more

than offset the impact of reduced mall operating hours during Brazil’s

World Cup match days – see our detailed preview. While we continue to

expect RIAA to outperform, based on recent execution and feedback from

Citi’s 2026 Equities Conference, MULT’s results suggest upside risks to

our estimates for LREN and CEAB, with apparel SSS potentially above

4%. We expect a positive reaction on apparel today but note the strong

performance of sports-related categories likely provided an additional

tailwind, which may have temporarily weakened the historical relationship

in Q2.

João Pedro SoaresAC

Felipe Husein

Lojas Renner