LREN3 Lojas Renner

Lojas Renner S.A. traces its origins to the entrepreneurial story of Antônio Jacob Renner, who in 1912 founded the A. J. Renner group, a manufacturing company in Porto Alegre (RS). In 1922, the first retail point was opened in the capital of Rio Grande do Sul to sell textile products, especially pure wool capes known as the Capa Ideal, aimed at men’s clothing and widely used by gauchos from the Campanha region, traveling salesmen and urban men. From 1940 onward, with an expanded product mix, the business became a department store. Lojas Renner S.A. was formally incorporated on June 10, 1965 and, on May 4, 1967, the company went public, with its shares now traded on B3 under the ticker LREN3.

Throughout the 1990s, the company underwent a major restructuring, replacing the traditional department store model with the concept of a fashion-focused department store, which marked a relevant shift in its positioning. From 1994 onward, it began an extensive geographic expansion plan, opening stores in Santa Catarina, Paraná and later in the country’s main economic hub, the state of São Paulo. In subsequent years, Lojas Renner moved into Rio de Janeiro, Minas Gerais, the Federal District and several other states, ultimately consolidating its presence in all Brazilian states and in the Federal District in 2014. In 1998, control was transferred to the US company J.C. Penney Brazil, Inc., and in 2005 the company converted preferred shares into common shares, joined B3’s Novo Mercado and became Brazil’s first corporation, with 100% of its shares in free float and no controlling shareholder. In 2006, a stock split was carried out to increase liquidity and facilitate access for investors, including smaller ones.

Lojas Renner’s business model has evolved into an omnichannel fashion and lifestyle ecosystem that integrates different brands and physical and digital channels. The company presents itself as a leader in omnichannel fashion retail in Brazil, bringing together the brands Renner (its core business, accounting for 91% of total net revenue), Camicado, Youcom, Ashua, the financial company Realize CFI and the digital platform Repassa. At the end of 2024, the company had 686 stores in operation, combining physical points of sale with e-commerce and apps, in a model that seeks to integrate the shopping journey across multiple channels. The administrative headquarters remains in Porto Alegre (RS), complemented by offices in China, Vietnam and Bangladesh and three distribution centers, which support retail operations and supply chain management.

In the retail segment, classified as the main operating segment, Lojas Renner sells apparel, fragrances, cosmetics, watches, home and décor products, in addition to operating urban delivery services and logistics management solutions. Operations encompass the banners Renner, Camicado, Youcom, Repassa, Ashua, the logistics company Uello and operations in Uruguay and Argentina. The Renner brand focuses on fashion for the mid/high-income public, offering clothing, accessories, lingerie, footwear, cosmetics and fragrances for women, men, children and teenagers, with collections developed by an in-house team based on trend research, fashion shows, national and international trade fairs and observation of urban behavior. Camicado operates in the home and décor segment, with a strong presence of its own brand Home & Style, while Youcom is positioned as a youth fashion brand with an urban lifestyle. Ashua is a brand specialized in curve & plus size, with a focus on fit, comfort and style in an omnichannel experience as well. Repassa, in turn, is a native digital platform focused on reselling clothing, footwear and accessories, with an emphasis on sustainability.

In addition to retail, the company operates in financial products through Realize Crédito, Financiamento e Investimento S.A. (Realize CFI), a financial institution 100% controlled by Lojas Renner. This segment is responsible for offering personal loans, purchase financing, insurance and other typical credit company operations, as well as revenue from marketplace commissions, sales intermediation, urban deliveries and customized logistics management solutions. Realize operates the Cartão Renner, a private label card created in 1973, and Meu Cartão, a co-branded card launched in 2012 with Mastercard and Visa brands, which can be used both inside and outside Brazil. For purchases at Renner, both allow installment payments in up to five interest-free installments or up to ten installments with charges, complemented by personal loans and an insurance portfolio. This financial arm strengthens the company’s ability to offer integrated payment and credit solutions, increasing engagement among customers within the fashion and lifestyle ecosystem.

Lojas Renner has been expanding its geographic presence beyond Brazil. In the domestic market, it has consolidated operations in all states and in the Federal District, supported by highly automated distribution centers such as those in São José (SC) and Rio de Janeiro (RJ), which contribute to logistics efficiency, shorter lead times and lower need for markdowns. Internationally, the company began operations in Uruguay in 2017, with stores in Montevideo aimed mainly at mid/high-income women, expanding the network to nine stores, with e-commerce and an imports receiving hub directly from Asia in 2019. It also entered Argentina in 2019, with four stores in Buenos Aires and Córdoba, following the same positioning focused on mid/high-income women. The company also maintains offices in China, Vietnam and Bangladesh to support product imports and development, with imported items, mainly from these countries and also from Peru, Argentina and Uruguay, representing around 30% of sales.

From a production standpoint, the company uses its own processes for collection development, integrating trend research, product design and close relationships with a supplier network. The in-house team creates prints, color palettes and lifestyle concepts, which are translated into seasonal collections tailored to Brazil’s different climates and regional preferences. Starting in 2012, Lojas Renner carried out an investment cycle focused on the “Fashion Retailer” concept, renovating and expanding its store base, developing the supplier chain, reducing response times and increasing the number of collections, with attention to social and environmental practices. In recent years, it has intensified the use of technology and artificial intelligence in trend capturing, digital product development and supply chain management, including digital collections using 3D tools, body scanning and hyper-realistic simulation. The company has also increased so-called collection reactivity, with a relevant share of products being developed and purchased in season, shortening decision cycles and reducing exposure to assortment errors.

In the regulatory environment, Lojas Renner points out that it does not operate in a regulated sector that requires specific concessions, but depends on municipal operating licenses, fire department permits and compliance with zoning rules in each location where it operates stores and facilities. It is also subject to consumer protection rules, mainly the Consumer Defense Code, which regulates relations with customers on topics such as the right to clear information about products, prices and risks. The company has also adapted to the General Data Protection Law (LGPD), which came into force in 2020, adjusting operations and its business model to ensure the safe and responsible use of personal data, in line with the guidelines of the National Data Protection Authority (ANPD). In the social and environmental field, the company guides its activities by the objective of “making fashion in a responsible way”, including initiatives related to sustainability, increasing the share of sustainable raw materials in collections and internal programs focused on diversity, inclusion and strengthening organizational culture.

For individual investors looking at LREN3 shares on B3, Lojas Renner presents itself as a discretionary consumer retailer with a strong focus on fashion, a multi-brand architecture and a relevant presence in consumer financial services. In 2024, the retail segment accounted for approximately 87% of total consolidated net revenue, while financial products represented around 13%, underscoring the weight of the fashion business in the company’s revenue generation. Its recent strategy has been based on organic store expansion, increased digital penetration, productivity gains across the chain and evolution of the omnichannel model, with an emphasis on technology, data intelligence and logistics integration, seeking to sustain growth and profitability within a diversified fashion and lifestyle ecosystem with national scale in Brazil and regional scale in South America.