C&A Modas surges 5.26% after Citi highlights expansion plan

Shares of C&A Modas led gains on the Ibovespa on Monday, September 21, 2026, rising 5.26% to R$ 9.41 by 12:18 p.m. in Brasília. The rally followed a report from Citi highlighting a shift by company leadership toward a more ambitious growth phase focused on profitability expansion.

Citi analysts João Pedro Soares and Felipe Husein met with company executives, including Chief Financial Officer Laurence Gomes. According to the analysts, management expressed confidence in organic growth and mapped long-term potential for approximately 130 new stores. Between 60 and 80 of those units represent concrete opportunities in the short and medium term, though productivity and omnichannel performance will take priority over opening speed.

C&A projects that same-store sales will continue outperforming inflation, driven by concurrent increases in foot traffic and average spend. Meanwhile, management views financial arm C&A Pay as a retail leverage tool rather than an independent profit center. Credit quality has remained stable, assisted by tighter lending rules implemented late last year.

The retailer anticipates margin gains through 2030 via dynamic pricing, assortment improvements, and logistics decentralization. Having consolidated a net cash position, C&A plans to increase shareholder returns while self-funding organic growth without substantial capital expenditure hikes. Citi maintained a buy recommendation with a target price of R$ 16, representing 79% upside relative to Friday's close.