Lojas Renner Announces Fourth Quarter 2024 Earnings Results

PORTO ALEGRE, Brazil, Feb. 20, 2025 /PRNewswire/ -- Lojas Renner S.A. (B3: LREN3), the largest fashion retailer in Brazil, announces its results for the fourth quarter and full year 2024 (4Q24 and 2024). All comparisons are made to the same period of the previous year, unless otherwise indicated.

Highlights

• 4Q (+9.7%) and FY (+8.2%) sales growth exceeded the market average, driven by increases in both pieces sold and transactions
• ~9% increase in 2024 and 4Q sales per m² due increased productivity
• Significant growth in Digital GMV in 4Q and year, with higher profitability
• Well-calibrated and renewed inventories decreased average inventory days (4Q: -5 days / FY: -9 days)
• Disciplined expense containment resulted in 0.8p.p. dilution in the 4Q and 1.3p.p. for the year
• Important evolution of Realize: R$ 168 MM in results for the year with decreased portfolio risk
• Robust cash position of R$2.8 bi and net cash of R$1.8 bi
• Strong operational performance, with record FCF generation of R$ 613 MM for the 4Q and R$ 1.5 bi for the year
• Improved NPS across all business units and channels
• 20 MM active customers in the ecosystem
• Buyback Program approved, of up to 75 million shares, ~7% of the free float, equivalent to approximately R$ 1 billion at the current price (subsequent event).

Message from the CEO

"In 2024, we completed the most significant investment cycle in our history. These investments have strengthened our competitive advantages to accelerate growth and increase profitability. Our evolved business model is driven by several important initiatives that reinforce our position as an industry leader in fashion execution through important advances primarily related to the development of our collections, customer journey, digitalization through use of data and AI, and granular omnichannel supply, while providing our customers enchanting products and experiences, also ensuring our Company's positive impact through responsible fashion. The benefits of the model will further evolve as related initiatives continue to gain traction.

Fourth quarter operating results reflect the strength of our strategic model. We delivered sales growth exceeding the market average, a healthy gross margin, and improved ROIC, along with continued efficiency improvements and record free cash flow generation. Additionally, we saw NPS evolution at all of our business units, in addition to an increased active customer base.

At Realize, our financial services business, we ended 2024 with a healthy portfolio having revitalized this operation; strengthening our credit and risk management and enhancing Realize's overall value proposition. Fourth quarter results grew significantly as a result. Importantly, we also saw Realize continue to drive Renner's retail business, financing sales while deepening customer loyalty.

We are proud of our 2024 achievements, a milestone year for delivering our model evolution objectives and already with concrete results. We've entered the next phase, underscoring our commitment to long-term growth, profitability and cash generation, with future investments directed towards growth rather than infrastructure. This places us on uniquely favorable footing, with a strong cash flow generation and a robust cash position, which enables us to make strategic investments and capture opportunities in the current environment. This remains fully aligned with our stated capital allocation priorities tied to Company's key growth levers: improving store productivity, increasing digitalization through an omni approach, organic expansion into new locations and strengthening brands and lifestyle concepts.

The sustained strength of our free cash flow and of our balance sheet also enabled us to demonstrate our confidence in Company's business and its success when we announced earlier today that we will return capital to our shareholders through a buyback program equivalent to approximately R$ 1 billion. We believe that the current price of our shares does not adequately reflect the value of the Company in light of the growth and progress demonstrated during the year and its potential future.

Therefore, while we expect significant external challenges in 2025, likely to result in a more muted industry performance, we have taken important steps to shape our own path forward. Lojas Renner S.A. built one of the longest, most successful track records of any Brazilian retailer, with a sixty-year history of navigating dynamic environments. We'll maintain our steady focus on value generation and are well positioned for sustained long-term growth."

Fabio Faccio – CEO

For a full version of Lojas Renner's Results, please visit: https://lojasrenner.mzweb.com.br/en/

Earnings Conference Call*
Date: February 21, 2025
Time: 10:00 a.m. (BRT) | 8:00 a.m. (ET) | 1:00 p.m. (GMT)
*Portuguese with a simultaneous English translation.
Access the webcast here.

About Lojas Renner S.A.
The Company was incorporated in 1965 and listed in 1967, becoming a pure widely held company in 2005 with a 100% free float, being considered the first true Brazilian corporation. Renner's equities are traded on B3 under the LREN3 symbol in the Novo Mercado segment, the highest level of corporate governance.

Lojas Renner S.A. is a fashion and lifestyle ecosystem connected to its customers through digital channels and its physical stores in Brazil, Argentina and Uruguay. It is today the ecosystem leader in omnichannel fashion retailing in Brazil through the Renner, Camicado, Youcom, Realize CFI and Repassa businesses.

Legal Notice
The statements contained within this document relate to the prospects for the business, estimates for operating and financial results. and those related to growth prospects of Lojas Renner S.A. are merely projections and, as such, are based exclusively on the expectations of the Company's management with respect to the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of the Brazilian economy, the sector and the international markets and are therefore subject to change without prior notice. All variations and totals as well as rounded numbers presented herein are calculated in thousands of Reais.

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SOURCE Lojas Renner S.A.