C&A (CEAB3) posted net income of R$ 170.3 million in 3Q26, versus R$ 69.5 million in 3Q25, an increase of 145.1%. The result benefited from the recognition of PIS and COFINS tax credits, based on the assessment of the company's internal and external legal experts. Excluding this and other non-recurring effects, adjusted net income was R$ 56.5 million, down 23.3% from 3Q25, when it totaled R$ 74 million, with a margin of 3.0%, versus 4.0%.
Consolidated net revenue totaled R$ 1,883 million in the quarter, up 2.3%. Net apparel revenue reached R$ 1,690.9 million (+2.6%), with same-store sales of 1.0%. Revenue from the website and app was R$ 143.2 million (+27.6%), or 8.0% of merchandise sales, versus 6.3% in 3Q25. The company cites lower customer traffic because of the World Cup, high interest rates and household income being stretched.
Apparel gross margin was 56.0% (+0.6 percentage point), the 21st consecutive quarter of expansion. Consolidated gross margin was 55.7%. Adjusted post-IFRS 16 EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 317.6 million (-4.7%), with a margin of 16.9%. Pre-IFRS 16, it totaled R$ 191.2 million (-8.4%), with a margin of 10.2%, versus 11.3% in 3Q25. Operating expenses (SG&A) totaled R$ 827 million (+5.6%) and came to represent 43.9% of net revenue, versus 42.5% in 3Q25. The company attributes the margin decline to non-recurring brand investments (C&A's 50th anniversary and Rock in Rio) and lower expense dilution.
C&A Pay, the financial services arm, posted a result of R$ 20.2 million, versus R$ 7.9 million in 3Q25. Delinquency over 90 days (NPL 90) was 13.9%, down 2.5 percentage points. Capex (investments) was R$ 183.9 million, up 26.2%. Operating cash generation was R$ 349 million, down 7.5%.
Gross debt ended the quarter at R$ 927.5 million (-27.1%) and cash at R$ 727 million, with net debt of R$ 200.5 million and leverage of 0.2x adjusted pre-IFRS 16 EBITDA for the last 12 months. ROIC (return on invested capital) for the last 12 months was 18.0%. During the year, the company paid R$ 139.8 million in JCP (interest on equity) and about R$ 110 million in share buybacks. It completed the 4th buyback program, of 10 million shares, and the Board approved the cancellation of 6.3 million treasury shares. The company also launched the Full Power strategic cycle, through 2030.
