Lojas Renner: 2Q26 – Conference Call Highlights

研报英文原文证据摘录

J P M O R G A N

Latin America Equity Research

07 August 2026

Lojas Renner

2Q26 – Conference Call Highlights

Neutral

LREN3.SA, LREN3 BZ

Price (06 Aug 26):R$13.48

LatAm Retail & Healthcare

Lojas Renner (LREN3) hosted its 2Q26 earnings call with top management and IR

team. See the main highlights below.

World Cup Effect. Management attributed the 2Q sales miss largely to the

World Cup, estimating a 3–4p.p. negative traffic drag. The impact was

more intense/sustained than prior editions, hitting mid-June to mid-July,

with normal traffic before and after.

Hard Comps. 2Q25 was a very tough comparison base, backed by strong

prior autumn/winter. The 2026 winter collection was well accepted and

sales were broadly in line with expectations before the World Cup impact.

Sales per Region. No material performance dispersion across regions or

income brackets; behavior was broadly similar geographically, with the

main deviation tied to the World Cup period.

HPC / Beauty. São Paulo tax substitution is estimated as a 0.5–0.7p.p. fullyear net revenue drag (no result impact). Amid higher competition, Renner

is expanding proprietary development, including the Alchimia fragrance

line, to build differentiation.

Competition / Digital. Lower foot traffic made digital more relevant

during the World Cup—own digital grew strongly to ~17% of sales, though

the shift likely also favored pure online players. Digital competition is

more price-intensive but omnichannel/margins allow selective competing.

Cash Distribution. Capital return unchanged—IoC payments maintained

(tax benefit, long track record), with additional/replenished reserves

funding buybacks; 2026–2030 payout guidance of 50–80% of net income

stays, and 80% is not necessarily a hard cap.

Gross Margin. Record 2Q levels—retail 57.5% and apparel 58.7%—seen

as sustainable on full-price sales, better inventory, supply-chain

responsiveness and FX. However, the pace of expansion should moderate

as the company nears historical highs.

Price Positioning & Realize. Renner monitors pricing daily to test

elasticity vs. peers and views itself well positioned. On Realize, it will stay

…