Magazine Luiza SA (OTCPK:MGLUY)

Q2 2026 Magazine Luiza SA Earnings Call Transcript

Aug 7, 2026 / 12:00 PM GMT

Release Date Price: $3.36 (-9.68%)

Transcript

Key Points

Positve

Physical store sales grew 9.7% same-store sales, with strong performance across categories including white goods (+15%) and furniture (+10%).
Gross margin improved to 30.6%, one of the highest for a second quarter, driven by store growth and services revenue.
EBITDA margin remained stable at 8% despite cost pressures, supported by strict expense control and a freeze on new hires.
Financial operations, including LuizaCred and MagaluPay, delivered strong results with LuizaCred's ROE exceeding 23% and net income growing 32% year-over-year.
New partnerships with third-party platforms like Amazon are expected to resume online growth with profitability, with Amazon sales already exceeding initial expectations.

Negative

Online sales declined due to cost pass-throughs in categories like mobile phones, computing hardware, and games, leading to a loss of market share online.
Net loss of BRL 50 million in the quarter, impacted by high interest rates and increased financial expenses.
Provisions increased by 0.4% due to the growth of the CDC portfolio, which offset some gains in gross margin and SG&A.
Inventory levels were reduced significantly, but this led to a higher supplier payment volume in Q2, affecting cash flow and financial expenses.
The company faces uncertainty in memory chip costs, which could impact margins in the coming quarters.

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

MGLU3.SA - Magazine Luiza SA
Q2 2026 Magazine Luiza SA Earnings Call
Aug 07, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, everyone.

Thank you for holding. Welcome to Magalo's conference call regarding the quarterly earnings.

For those who need simultaneous translation, click on the interpretation button via the globe icon at the bottom of the screen and choose the language of your preference, English or Portuguese. We inform you that this event is being recorded and will be made available on the company's IR website at ri.magaziniluiza.com.br. The earnings release and the presentation are already available in Portuguese and English. The link to the presentation in English is also. Available in the chat. During the presentation, all participants' microphones will be disabled. Then we will start the Q&A session.

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