Lojas Quero-Quero SA

BOVESPA:LJQQ3

Sales trend: Total gross revenue in Q4 was BRL 858 million, up 3% YoY, but same-store sales fell 2% in the quarter before showing a clear improvement into positive territory by month-end.

Credit resilience: VerdeCard portfolio ended Q4 with 11.1% delinquency and a BRL 1.6 billion credit portfolio, demonstrating controlled default amid a difficult macro year.

Profitability pressure: Retail gross margin was 22.4% (down vs. prior year) and the company reported an EBITDA of BRL 44 million in Q4 (BRL 14 million adjusted) and adjusted EBITDA for the year of BRL 151 million; the company reported a Q4 loss of BRL 43 million and a full-year loss of BRL 24 million.

Cost discipline: Management highlights cost control: administrative expenses fell 2% nominally YoY, SG&A initiatives reduced G&A by 2.2% in Q4 while operating expenses rose 3.7% and sales expenses 4.1% in Q4.

Phygital & penetration: Phygital sales reached a record 28% of total sales in Q4 (up 3 percentage points vs. Q4 2024); VerdeCard penetration reached 54% and transaction volume grew 22% year-over-year.

Store footprint: The company closed the year with 586 stores (21 openings in 2025, 2 in Q4), 27 store renovations (5 in Q4) and presence in 497 cities, with 85% of stores in cities under 100,000 inhabitants.

Balance sheet & cash: CapEx in 2025 was BRL 49.4 million; management lengthened debt profile during H2 and short-term maturities represent 16% of debt; adjusted net debt fell in Q4 as cash generation returned.

Outlook commentary: Management is cautiously optimistic for 2026 driven by tax changes for lower-income households, expected interest-rate reductions and a strong harvest, but maintains disciplined expansion until cash generation and macro conditions improve.