Brazil Retail: 2026 Brazil Equities Conference – Day Two Quick Takeaways

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Brazil Retail: 2026 Brazil Equities Conference – Day Two Quick Takeaways

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17 Jun 2026 23:51:38 ET │ 10 pages

Brazil Retail

2026 Brazil Equities Conference – Day Two Quick Takeaways

CITI'S TAKE

João Pedro Soares AC

Following Day 1 of Citi’s 2026 Brazil Equities Conference, on Day 2 we +55-11-4009-7562

hosted meetings with management of Renner, Assaí, Azzas, Riachuelo and joao.soares@citi.com

Magazine Luiza. Below we highlight the key takeaways from each meeting.

See Day 1 takeaways here. Felipe Husein

+55-11-4009-7137

LREN — 1) Tone was balanced: mgmt. cited more favorable weather in May vs. Apr felipe.husein@citi.com

but refrained from discussing the quarter in detail, while reiterating that 2H26

should improve vs. 1H26, supported by easier comps and incremental selling area.

2) On top line, mgmt. seemed comfortable with delivering at least the low-end of

the annual sales growth guidance of 9-13% (2026-2030) – presented in its 2025

Investor’s Day. 3) On macro/pricing, apparel demand remains volatile and

consumers price-sensitive, but Renner’s pricing appears adequate for its core

customer, with no need for adjustments. 4) Gross margin remains on track,

although 2Q26 faces a tougher comp given 2Q25 was a record quarter; mgmt. also

emphasized that the strong 1Q26 expansion should not be extrapolated

sequentially. 5) On opex/efficiency, company continues to drive productivity and

cost discipline without pursuing short-term margin gains at the expense of brand or

execution, reiterating confidence in delivering the Investor Day SG&A dilution target

of 2.5–3.5ppts by 2030 (~2/3 from operating leverage, ~1/3 from efficiency). 6) On

capital allocation, mgmt. highlighted that the 50–80% payout is not a hard cap,