C&A shares drop 2.15% after warning on third-quarter profits

Shares of C&A Modas fell 2.15% to BRL 12.28 at 12:35 Brasília time on October 8, 2026, ranking among the steepest drops on the Ibovespa. The decline followed an October 7 conference call with analysts where management signaled slower sales growth and profit pressure for the third quarter of 2026.

Renovations at 18 stores during the quarter, representing about 5% of the company's 341-unit network, weighed heavily on performance. Management noted that stores undergoing remodeling typically lose 10% to 15% of sales during construction. Goldman Sachs estimated that these works shaved between 0.5 and 1 percentage point off annual sales growth, though management reported an acceleration in September and stated that all remodeled units should be fully operational in the fourth quarter.

Goldman Sachs lowered its price target for C&A from BRL 16.50 to BRL 16, representing 27.5% upside over the prior close, while maintaining a buy rating. The bank lowered its 2026 net income forecast by 6% from BRL 534 million to BRL 502 million and cut its 2027 projection by 7% from BRL 492 million to BRL 458 million. For the third quarter, Goldman projected net income of BRL 34 million, down 51% year on year and 52% below the BRL 70 million Bloomberg consensus. It projected net revenue of BRL 1.868 billion, up 1.5%, and post-IFRS adjusted EBITDA of BRL 300 million, down 10%.

JPMorgan maintained its overweight rating, noting the third quarter accounts for about 23% of annual retail sales and 21% of EBITDA, with the stock trading at 7.5 times projected 2028 earnings. For the third quarter, JPMorgan forecast net revenue of BRL 1.870 billion, adjusted EBITDA of BRL 310 million, and net income of BRL 45 million, down 36%. While marketing expenses for Rock in Rio and the 50-year anniversary campaign pressured operating costs, management highlighted healthy cash generation, stable credit quality at C&A Pay, and progress in inventory normalization.