Magazine Luiza: 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

Magazine Luiza

2Q26 – Conference Call Highlights

Underweight

MGLU3.SA, MGLU3 BZ

Price (06 Aug 26):R$4.57

LatAm Retail & Healthcare

Magazine Luiza hosted its 2Q26 conference call. Please find the key messages

below.

ST trends / 2H26 outlook. Management sounded constructive on 2H26, due

to (i) the ramp-up of the recent partnerships helping to resume online growth

and (ii) warmer-weather benefits (El Niño) supporting categories like air

conditioning/refrigeration. Management believes online should grow again in

4Q26E.

Partnerships. Management stated partner-platform sales must

generate contribution margins higher than paid media acquisition

channels (e.g., Google/Meta), but lower than direct Magalu-channel sales.

Partnerships should also include reciprocity (e.g., leveraging MGLU

ecosystem services/logistics).

Amazon partnership.The company said initial results were above

expectations, with sales starting in June and July being the first full month; they

also described a staged rollout with the expectation of a step-up once products

carry a Prime badge (likely by October).

Categories & marketplace. Management said it will focus marketplace

efforts on categories where it has a competitive advantage (more curated

“brand place” approach) and described ongoing improvements in logistics/

fulfillment programs (including reduced reliance on post office deliveries and

expansion of fast delivery).

Expense control. Management reiterated a broad cost-reduction agenda

(software licenses, cloud, consulting, logistics, marketing, org structure) and

stressed that much of the opportunity has not yet been captured, with more

actions expected through 2H.

Working capital. Inventory days should improve on a y/y basis by the end of

the year, helped by the expected acceleration in sales. Payables days should

remain flat. On the receivables, a portion of the receivables should be

transitioned to the financing arm. Moreover, the company has the opportunity

to accelerate the monetization of tax credits.

Joseph Giordano AC

(55-11) 4950-3020

Banco J.P. Morgan S.A.

Nicolas Larrain

(55-11) 4950-3472

Banco J.P. Morgan S.A.

…