On Tuesday, August 4, 2026, C&A Modas (CEAB3) reported adjusted net income of R$ 130.1 million in the second quarter of 2026 (2Q26), up 4.3% compared to 2Q25, with an adjusted net margin of 6.2%. Reported net income was R$ 177.9 million, down 11.2% from the same period of the previous year, influenced by the reversal of a provision of approximately R$ 80.7 million in 2Q26 and by the higher base in 2025, when R$ 154.3 million related to the sale of the Bradescard portfolio was recognized.
In 2Q26, C&A Modas’ consolidated net revenue totaled R$ 2.08 billion, an increase of 1.2% year over year. Net apparel revenue reached R$ 1.89 billion, growth of 5.6% over 2Q25, while same-store sales in apparel (SSS, same-store sales growth) came in at 4.1%. Merchandise revenue totaled R$ 2.00 billion, up 1.8%, and financial services generated R$ 78.1 million, a decline of 8.8% after the end of the partnership with Bradescard.
Consolidated gross profit for the quarter was R$ 1.21 billion, an increase of 3.7% in one year, with a gross margin of 58.1%, 1.4 percentage points higher than in 2Q25. In apparel, gross profit reached R$ 1.12 billion, with a margin of 59.1%, 0.6 percentage points higher, marking the 20th consecutive quarter of margin expansion in the segment. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) pre-IFRS 16 totaled R$ 307.0 million, down 2.8%, with a margin of 14.7%, while adjusted EBITDA post-IFRS 16 was R$ 435.9 million, practically stable, with a margin of 20.9%.
The digital channel also grew: net merchandise revenue from the website and app was R$ 154.3 million in 2Q26, up 33.3% versus 2Q25, and came to represent 7.7% of merchandise sales. The C&A Pay financial product accounted for R$ 93.4 million in net revenue, an increase of 9.4%, with a 28.2% share of retail sales and a positive result of R$ 15.4 million, despite net credit losses of R$ 39.8 million, equivalent to 4.4% of the average portfolio of up to 360 days.
The company ended 2Q26 with gross debt of R$ 952.2 million, a 26.2% reduction in 12 months, and a cash, cash equivalents and financial investments position of R$ 782.0 million, resulting in net debt of R$ 170.2 million. Leverage, measured by the ratio of net debt to adjusted EBITDA pre-IFRS 16 for the last 12 months, stood at 0.2x. In the quarter, C&A Modas invested R$ 119.6 million in CAPEX, including new stores and refurbishments, and executed about 85% of its share buyback program, with R$ 64.3 million in buybacks in 2Q26, while Return on Invested Capital (ROIC) for the last 12 months reached 19.9%.
