CEAB3

C&A Modas S.A. is a publicly traded company in the fashion retail sector, with common shares traded on B3 under the ticker CEAB3, listed in the Novo Mercado segment. The C&A brand was founded in 1841 in Europe by the Dutch brothers Clemens and August, and has become one of the largest fashion retail chains in the world. The Brazilian operation began in 1976, with the opening of the first store in Shopping Ibirapuera, in São Paulo, being one of the pioneers of the department store format and the offer of ready-to-wear fashion in the country. Over the following decades, operations in Brazil went through corporate reorganizations that culminated in the establishment of C&A Modas in 1981 and in an expansion process that took the company to all Brazilian states and the Federal District, consolidating a relevant national presence in apparel retail.

The company built its path in the Brazilian market by exploring the concept of anchor stores in shopping malls, a model it helped spread starting in the 1970s. C&A was also one of the first large department store chains to operate a private label card in the country, integrating the offer of fashion products and consumer credit. Over time, the company has invested heavily in brand communication, with high-exposure advertising campaigns and partnerships with public figures, which has contributed to brand recognition in the market. In 2014, it took an important step in the digitalization of its operations by launching its e-commerce platform, followed in 2016 by the implementation of the Click & Collect model, expanding integration between physical and online channels. In 2019, its transformation into a corporation and its IPO on B3 marked a new phase, with a stated focus on the C&A Fashion Tech strategy, oriented toward digitalization, logistics modernization and the expansion of financial products.

C&A Modas’ business model is fundamentally centered on the creation, distribution and sale of fashion products and related categories through an integrated network of physical stores and digital channels. The portfolio includes clothing, footwear, accessories and beachwear for women, men and children, as well as fashion-oriented electronics such as cell phones, smartphones and watches, classified by the company as fashiontronics. In 2019, the company added the beauty category, with cosmetics and fragrances, reinforcing its value proposition of a broad assortment aimed at discretionary consumption. The company designs its own collections based on constant monitoring of trends and consumer behavior, seeking to quickly adjust assortment, volumes and size curves according to demand observed in stores and in e-commerce, which is reflected in the use of capsule collections, biweekly launches and native digital initiatives such as the Mindse7 brand.

C&A’s operation is organized into two main segments: Retail and Financial Products and Services. The Retail segment encompasses the sale of apparel, footwear, fragrances, cosmetics, watches and cell phones in physical stores and e-commerce, accounting for most of consolidated net operating revenue. In 2024, Retail net operating revenue totaled more than R$ 7.1 billion, while the Financial Products and Services segment, which includes consumer credit operations and insurance brokerage, reached approximately R$ 490 million in net operating revenue before intragroup eliminations. The company does not directly manufacture the products it sells; its model is based on controlling the creative, planning and purchasing stages, outsourcing manufacturing to a network of selected domestic and international suppliers, which allows flexibility in managing collections and volumes.

In brick-and-mortar retail, C&A Modas operates 332 stores distributed in more than 160 Brazilian cities, with a presence in all 26 states and the Federal District, combining mall-based units, which are the company’s main focus, and street stores. Total sales area exceeds 600,000 square meters, with stores often positioned as anchors in shopping centers, which contributes to customer traffic. Operations are supported by three distribution centers, located in São Paulo, Rio de Janeiro and Santa Catarina, with a total area of over 85,000 square meters, in addition to a logistics structure dedicated to e-commerce, automated in 2021. The supply chain integrates the replenishment of physical stores with service to digital channels, including omnichannel solutions such as Click & Collect and ship-from-store, which allow stores to be used as mini distribution hubs for online orders, reducing delivery times and optimizing logistics costs.

From a geographical standpoint, C&A’s revenue is generated entirely within Brazil, with no recorded revenue abroad in 2024. The supplier network, however, combines domestic and imported production: in 2024, around 73% of apparel and footwear products came from domestic suppliers, while the remainder was sourced from international partners, mainly in Asia, through the intermediation of C&A Sourcing, a COFRA group company that centralizes global sourcing operations. The customer base is highly fragmented, with no material concentration in any single buyer; no customer accounted for more than 10% of net revenue in fiscal year 2024, reflecting the mass-market nature of fashion retail operations aimed at the end consumer.

In addition to merchandise retailing, C&A Modas has been developing its own financial services platform. Historically, credit and insurance products were offered in partnership with Grupo Bradesco, through the co-branded C&A Bradesco card. In 2021, the company repurchased the right to operate this line of business and launched C&A Pay, its 100% digital private label card, usable exclusively in C&A stores and on the e-commerce platform. In 2024, C&A Pay reached a penetration of 25.3% of the company’s retail sales, offering installment options and the purchase of embedded insurance and assistance products. The creation of C&A Pay Holding Financeira and C&A Pay Sociedade de Crédito Direto, authorized to operate by the Central Bank in December 2022, reinforced the verticalization of the offer of consumer credit, subjecting this part of the business to the specific regulation of the monetary authority.

C&A Modas’ activities are subject to a set of regulations typical for large retail chains, involving municipal operating licenses, fire department permits, compliance with urban zoning rules, and adherence to safety and fire prevention standards. The company maintains processes for obtaining, renewing and controlling these authorizations in all locations where it operates, under penalty of administrative sanctions, fines or shutdowns in case of non-compliance. In parallel, the company is subject to Brazil’s personal data protection legislation, including the General Data Protection Law (LGPD) and related rules, which is particularly relevant given the volume of customer, employee and partner data processed in its physical and digital channels. To comply with this regulatory framework, the company has implemented privacy notices, contractual data protection clauses and consent management and data subject service tools, under the supervision of the National Data Protection Authority.

On environmental, social and governance matters, C&A Modas structures its actions around the idea of fashion with a positive impact, which translates into initiatives within its own operations and across its supply chain. The company has a system to monitor environmental legislation at the national level and adopts a Solid Waste Management Plan, updated annually, in line with the National Solid Waste Policy, seeking proper disposal practices and waste prevention and reduction. On the social and labor front, the company monitors compliance with labor and human rights standards not only in its direct operations but also across its supplier network, focusing on preventing child labor and conditions analogous to slavery. Since 2006, it has maintained supplier audit and development programs, also using industry initiatives such as ABVTEX and SLCP, and works in partnership with the Instituto Pacto Nacional pela Erradicação do Trabalho Escravo (InPACTO). These actions are complemented by specific codes of conduct for suppliers and by internal structures dedicated to ESG and a sustainable supply chain, in addition to the work of Instituto C&A in social impact projects.

In a competitive environment marked by the fragmentation of Brazilian retail, with more than one million companies in the sector and strong competition from chains such as Renner and Riachuelo, as well as department stores, hypermarkets and international e-commerce players, C&A Modas seeks to combine the scale of its physical stores, an omnichannel strategy and a proprietary credit offering. CEAB3 shares, traded on B3, reflect the consolidated performance of this combination of fashion retail, associated financial services, and logistics efficiency and digitalization initiatives. In 2024, the company posted net revenue of R$ 7.64 billion, net income of R$ 452.5 million and a gross margin of 54.7%, figures that highlight the importance of apparel and related retail as the company’s main source of revenue and earnings generation.