C&A (CEAB3) posted net income of R$ 170.3 mn in 3Q26, compared with R$ 69.5 mn 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 mn, down 23.3% from 3Q25, with a margin of 3.0%.
Consolidated net revenue totaled R$ 1,883 mn in the quarter, up 2.3%. Net apparel revenue reached R$ 1,690.9 mn (+2.6%), with same-store sales of 1.0%. Revenue from the website and app was R$ 143.2 mn (+27.6%), or 8.0% of merchandise sales. The company cites lower customer traffic due to the World Cup, high interest rates and strained household income.
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 mn (-4.7%), with a margin of 16.9%. Pre-IFRS 16, it totaled R$ 191.2 mn (-8.4%), with a margin of 10.2%. 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 mn, compared with R$ 7.9 mn in 3Q25. Capex (capital expenditures) was R$ 183.9 mn, up 26.2%. Operating cash generation was R$ 349 mn, down 7.5%.
Gross debt ended the quarter at R$ 927.5 mn (-27.1%) and cash at R$ 727 mn, with net debt of R$ 200.5 mn and leverage of 0.2x adjusted pre-IFRS 16 EBITDA for the last 12 months. During the year, the company paid R$ 139.8 mn in JCP (Interest on Equity) and about R$ 110 mn in share buybacks. It completed its 4th buyback program, covering 10 million shares, and the Board approved the cancellation of 6.3 million treasury shares. The company also launched the Full Power strategic cycle, running through 2030.
