Guararapes Confeccoes SA
BOVESPA:GUAR3
Guararapes Confeccoes SA
Guararapes Confecções SA engages in the operation of retail clothing store chains. The company is headquartered in Natal, Rio Grande Do Norte and currently employs 31,155 full-time employees. The firm is involved in the manufacture, wholesale, retail and export of clothing and fabrics, as well as in the import and wholesale of footwear, bath and table linens, perfumes and cosmetics, among others. The firm's activities are divided into three business segments: Retail, which focuses on selling apparel and other goods through stores network under the Lojas Riachuelo brand name; Finance, which offers consumer loans granted through credit cards, and Other, which includes commercial real estate rental and management, as well as road trucking, among others. The firm operates through a number of subsidiaries, such as Lojas Riachuelo SA, Midway Shopping Center Ltda, Midway SA - Credito Financiamento e Investimento and Transportadora Casa Verde Ltda.
Guararapes Confecções SA engages in the operation of retail clothing store chains. The company is headquartered in Natal, Rio Grande Do Norte and currently employs 31,155 full-time employees. The firm is involved in the manufacture, wholesale, retail and export of clothing and fabrics, as well as in the import and wholesale of footwear, bath and table linens, perfumes and cosmetics, among others. The firm's activities are divided into three business segments: Retail, which focuses on selling apparel and other goods through stores network under the Lojas Riachuelo brand name; Finance, which offers consumer loans granted through credit cards, and Other, which includes commercial real estate rental and management, as well as road trucking, among others. The firm operates through a number of subsidiaries, such as Lojas Riachuelo SA, Midway Shopping Center Ltda, Midway SA - Credito Financiamento e Investimento and Transportadora Casa Verde Ltda.
Strong Growth: Riachuelo delivered double-digit same-store sales growth in apparel (10.3% for the year, 7.2% in Q4), marking 10 consecutive quarters of positive growth.
Margin Expansion: Apparel gross margin hit 57.8% in Q4 (up 2.9 ppts YoY), the ninth straight quarter of margin gains; full-year margin reached a 7-year high of 56.7%.
Profitability Records: Net income more than doubled to BRL 512 million for the year, and Q4 net income rose nearly 30% to BRL 322 million.
Midway Performance: Financial services arm Midway posted 28.4% EBITDA growth in Q4 and nearly doubled EBITDA over four years, now contributing up to 30% of results.
Store Expansion Accelerating: Eight new stores opened in 2025, with a target of 15–20 openings per year ahead and potential for 100–150 total new stores.
Clean Balance Sheet: Net debt reduced to BRL 60 million at year-end after a major deleveraging process, supporting resumed investments.
Strategic Focus: Company exited electronics to focus on higher-margin apparel, while also investing in brand, store experience, and supply chain efficiency.
Outlook: Management sees ongoing margin improvement potential, further store openings, and continued conservative growth in financial services.
