C & A Modas SA (BSP:CEAB3)

Q2 2025 C&A Modas SA Earnings Call (English, Portuguese) Transcript

Aug 7, 2025 / 02:00 PM GMT

Release Date Price: R$17.07 (-8.37%)

Transcript

Key Points

Positve

C & A Modas SA (BSP:CEAB3) reported a 17% increase in same-store sales for apparel, with a gross merchandise margin expansion of almost 2 percentage points.
The company achieved a 113% increase in adjusted net income, reaching BRL124.7 million, alongside record cash generation of BRL185 million.
C & A Modas SA (BSP:CEAB3) reduced its leverage to 0.3 times net debt to EBITDA, the lowest level since its IPO, allowing for accelerated investment plans.
The company's beauty category saw a robust performance with a 64% year-over-year growth, particularly boosted by fragrances and makeup.
C & A Modas SA (BSP:CEAB3) achieved a 20.4% return on invested capital (ROIC) over the last 12 months, indicating strong asset productivity.

Negative

The company faced an increase in general and administrative expenses by 1.5 percentage points as a percentage of net revenue, mainly due to labor charges on long-term incentive plans.
Operational expenses increased by 1.4 percentage points against the second quarter of 2024, impacted by the demobilization of the cell phone business and a drop in CNA pay revenue.
C & A Modas SA (BSP:CEAB3) continues to face challenges with its logistics strategy, requiring significant investment of BRL200 to 250 million over the next three years.
The company remains conservative in its credit granting policy for CNA pay, maintaining a lower penetration compared to other players.
Despite strong performance, the company acknowledges potential challenges in the third quarter due to earlier winter seasonality affecting future sales dynamics.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CEAB3.SA - C&A Modas SA
Q2 2025 C&A Modas SA Earnings Call (English, Portuguese)
Aug 07, 2025 / 02:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good morning.

Welcome to CNA's 2nd quarter 2025 earnings conference call.

Joining me today are Mr. Paulo Correa, the company's CEO, and Lawrence Miltram Gomez, CFO and IR director. This presentation and the earnings release are already available on the company's investors relations website.

This conference call is being recorded and simultaneously translated into English. To listen to the English version, click on the interpretation button. The replay of this conference will also be made available on our RI website. After the company's remarks, we'll open the floor for questions. To ask a question, just press the raise hand button to join the waiting line, or you can send your question in

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.