LJQQ3: quote, dividends and indicators for Lojas Quero-Quero

Lojas Quero-Quero S.A. is a retail company founded in 1967 in the city of Santo Cristo, in the countryside of Rio Grande do Sul, originally under the name Quero-Quero Comércio e Representações Ltda. Created by Tilli Alceu Scholze, Walter Edmundo Gallas and Senna Klein Hartmann, it began operating with a focus on agricultural implements and veterinary products, following the economic cycle of agribusiness in Rio Grande do Sul. Over the first few years, the portfolio was expanded to include hardware, tools and construction materials, which gradually became the core of the business. In the 1970s, the company began its regional expansion process by opening branches in neighboring cities, maintaining a strong link with local communities, and also operated in the food retail segment. The shift in profile toward durable goods retail took place between the late 1970s and the 1980s, with the introduction of home appliances and, later, furniture, consolidating a store format that combined building materials and household items. In 1981, the company’s corporate purpose started to formally include retail of construction materials, furniture and home appliances, and in 1988 the company was converted into a corporation, adopting the name Quero-Quero S.A., until it reached its current name, Lojas Quero-Quero S.A., in 2006.

Lojas Quero-Quero’s geographic expansion trajectory gained momentum starting in the 1990s, when the chain surpassed the 50-store mark and launched operations in Santa Catarina, expanding its presence beyond Rio Grande do Sul. During this period, the company also began operating in a more structured way in financial services, initially with consortiums and direct financing, and later with the creation of its own card, VerdeCard, which was launched as a means of financing purchases in the chain’s stores and, at the request of local merchants, expanded its acceptance to affiliated establishments. In 1997, the subsidiary Quero-Quero VerdeCard Instituição de Pagamento S.A. was incorporated and was later authorized to operate as a payment institution in the acquirer and postpaid instrument issuer modalities. In 2002, the company created a subsidiary dedicated to insurance brokerage, now called Sentinela dos Pampas Administradora e Corretora de Seguros Ltda., complementing the retail mix with financial protection and extended warranty offerings linked to the products sold.

From the 2000s onward, Lojas Quero-Quero intensified its professionalization and growth process, combining organic expansion with acquisitions. In 2007, it acquired the chain Lojas Fischer Ltda., with 32 stores, reinforcing its regional presence. In 2008, private equity funds managed by entities affiliated with Advent International took control of the company, which led to strengthened governance, with the introduction of independent board members, an audit committee and structured management practices. In 2009, headquarters were moved to Cachoeirinha, in the metropolitan region of Porto Alegre, bringing the company closer to its main suppliers. In the early 2010s, the company entered the state of Paraná, completing its presence throughout the South region, and reached the 200-store mark, supported by an organic expansion program that sought to reconcile growth with operational and financial sustainability. In this context, the “Mais Construção” format was developed, with stores offering a wider assortment of construction materials and greater ready-delivery capacity, a model that grew significantly across the chain throughout the decade.

Lojas Quero-Quero’s business model is structured in a single operating segment, broken down into three business activities: Retail, Financial Services and Credit Card. In retail, the company operates predominantly in the sale of construction materials, home appliances, furniture, décor items, organization products and lifestyle products, through physical stores, e-commerce and the “Figital” platform, also called Loja Infinita. The construction materials portfolio covers wall and floor coverings, finishes, basic and structural materials, equipment, doors and windows, forest and garden lines, and paints, serving both new construction and renovation projects. In home appliances, the offering includes white goods, brown goods, small appliances, technology, automotive products and telephony. In the furniture category, there are items for kitchens, living rooms, bedrooms, offices, service areas and leisure areas; in décor and organization, the company offers bedding, table and bath linens, housewares, sports and leisure items, children’s items, décor, organization and cleaning products. The line of construction materials is the most representative in terms of order volume and supports the integrated “home and construction” proposition, where customers can find everything from products for building works to furniture and accessories for the home.

In the Financial Services activity, Lojas Quero-Quero operates through partnerships with financial institutions and insurance companies, structuring a set of products that includes direct-to-consumer credit, personal loans, invoice installment plans, revolving credit, debt renegotiation and advance of receivables for commercial establishments that accept the VerdeCard. These operations are carried out through credit, financing and investment companies, under a profit-sharing model, in which the company participates in operating results after taxes, funding costs, operating expenses and provisions for doubtful accounts. In insurance, operations are carried out through the brokerage firm Sentinela dos Pampas, which distributes extended warranty, financial protection, daily hospital stay insurance, insurance against cell phone theft, robbery and screen breakage, home insurance and “carteira segura” insurance, in partnership with insurance companies such as Assurant, Sancor, Sura and Generali. Lojas Quero-Quero acts as a distributor, being remunerated by sales commissions, with no exposure to the technical risk of the policies.

In the Credit Card activity, VerdeCard plays a central role, not only as a means of payment for purchases at Lojas Quero-Quero, but also as a tool for building relationships with the communities in which the chain operates. The brand is present at accredited establishments that use the infrastructure of acquirers such as Cielo, Stone and Banrisul Vero to capture transactions, while processing and settlement are carried out by Verde itself. Revenue in this line of business comes from annual fees, discount fees on transactions, interchange fees and service fees, with the use of Verde’s own capital to finance interest-free transactions. With the expansion into states where the VerdeCard brand was not known, such as Paraná, Mato Grosso do Sul and São Paulo, the company established a partnership with the Elo brand, issuing Elo-branded cards to increase acceptance outside of its stores. As of 2022, this partnership was strengthened, with the issuance of Quero-Quero VerdeCard cards with the Elo brand in all regions. In 2018, the FIDC VerdeCard was created, seeking to optimize the funding structure and risk management of the credit portfolio originated by the card.

Lojas Quero-Quero’s geographic presence is concentrated in small and medium-sized cities. As of December 31, 2025, the company operated 586 stores in five states – Rio Grande do Sul, Santa Catarina, Paraná, Mato Grosso do Sul and São Paulo – with around 385 thousand m² of sales area. Approximately 96% of the units were located in municipalities with up to 300 thousand inhabitants, with strong penetration in small cities: 316 stores in municipalities with up to 25 thousand inhabitants and 99 in cities with between 25 and 50 thousand inhabitants, reflecting the strategy of operating in less concentrated markets with dynamics that differ from major urban centers. Over the same period, the store base was divided between the Traditional and “Mais Construção” formats, the latter with 563 units, featuring an expanded mix of construction materials and focusing on serving end customers and building professionals. Recent expansion has been supported by investments in logistics, with three distribution centers located in Santo Cristo and Sapiranga, in Rio Grande do Sul, and in Corbélia, in Paraná, as well as regional warehouses to optimize inventories and deliveries. The company does not have its own manufacturing, operating with diversified purchases from hundreds of suppliers, with statistical monitoring of inventory and margins by SKU and by store, and supply predominantly via distribution centers.

The logistics and commercial structure is complemented by digital initiatives and a guided service model. E-commerce, launched in 2019, initially serves cities where there are physical stores, integrated with store pick-up and ship-from-store mechanisms. In 2020, the Figital project was launched, which evolved into Loja Infinita in 2021, a virtual showroom with the equivalent of thousands of square meters and a mix of more than 25 thousand SKUs, increasing the assortment available in physical stores without requiring proportional local inventory. The company also launched Quero-Quero PAG, turning the card app into a payment platform with a digital account and PIX integration. In parallel, the company develops internal leadership training programs, such as the corporate trainee program, used to strengthen strategic areas and maintain a high level of analytical knowledge in inventory, pricing and expansion management.

In terms of governance and environmental and social practices, Lojas Quero-Quero has been incorporating initiatives related to sustainability and transparency. In 2020, the company carried out its initial public offering (IPO), and its common shares began trading on B3 under the ticker LJQQ3, listed on the Novo Mercado segment, which brings together companies with differentiated corporate governance practices. In 2023, it inaugurated six photovoltaic plants with total capacity of 7.9 MWp, designed to reduce CO2 emissions by more than 1,500 tons per year, a project aligned with the pursuit of energy efficiency in its operations. In the field of transparency on climate change, the company began incorporating the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into its sustainability report. Its work in communities also stood out in times of crisis, such as during the severe floods in Rio Grande do Sul, when the company mobilized donations of essential items, support for affected employees and the reopening of impacted stores in a short period of time. This combination of expansion in small and medium-sized cities, an integrated offering of retail and financial services, and growing attention to environmental, social and governance aspects shapes the current profile of Lojas Quero-Quero S.A. as a publicly traded company listed on B3.