Magazine Luiza (MGLU3) reported a book net loss of R$ 10.7 million in 3Q26, compared with a profit of R$ 84.6 million in 3Q25. Excluding non-recurring items, adjusted net income was R$ 13.9 million, versus R$ 21.2 million a year earlier. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 710.1 million, with a 7.9% margin.
Net revenue was R$ 8.9 billion, down 0.9% from 3Q25, and gross revenue totaled R$ 11.3 billion (R$ 11,267.4 million), a decline of 0.5%. Gross profit was R$ 2.8 billion, with a gross margin of 31.6%, up 0.1 percentage point, driven by growth in services revenue, especially CDC (direct consumer credit) origination at Magalupay SCFI. Book EBITDA was R$ 687.9 million, with a 7.7% margin, versus R$ 807.4 million in 3Q25.
Total sales, including marketplace, were R$ 14.6 billion, down 3.6%. Physical stores grew 10.0% (9.5% on a same-store basis), with sales of R$ 5.2 billion. Total e-commerce fell 9.8% to R$ 9.3 billion, of which R$ 5.9 billion came from own inventory (1P) and R$ 3.5 billion from the marketplace (3P). In October, store gross revenue grew 16% and 1P e-commerce revenue grew 14%.
Selling expenses went from 19.2% to 18.8% of net revenue, and administrative expenses fell 3.1%. Operating cash generation was R$ 332.5 million, and total cash ended the quarter at R$ 5.7 billion. Inventories rose by R$ 378 million ahead of Black Friday and Christmas, and the balance of supplier financing (convênio) fell by R$ 1.5 billion. In October, the company completed the payment of R$ 1.0 billion of its 10th debenture issuance (debt securities).
Luizacred posted net income of R$ 77.8 million, up 14.4%, and a card portfolio of R$ 19.9 billion. Magalupay SCFI recorded a profit of R$ 32.3 million, with a gross credit portfolio of R$ 838.5 million.
