Magazine Luiza shares jump 10.11% on lower yields

Magazine Luiza shares rose 10.11% to R$ 7.30 at around 2:20 p.m. Brasília time on September 30, 2026. The stock was among the top gainers on the Ibovespa index, supported by a drop in future interest rates following US Treasury yields.

In a recent report, JP Morgan highlighted Magazine Luiza and Assaí as the most leveraged retailers in its coverage. According to the bank, every 100-basis-point move in interest rates relative to the base case changes Magazine Luiza's 2028 estimated earnings per share by 10%, compared with 5% for Assaí and about 2% on average for other retailers. The bank models project an average Selic rate of 11.25% in 2028, ending that year at 10.5%.

JP Morgan incorporated market share gains from the judicial recovery of Casas Bahia and a partnership with Mercado Libre, which it projects will support sales growth of around 10% in 2027. Even so, the bank maintained an Underweight rating on Magazine Luiza due to macroeconomic headwinds and pressure on durable goods demand.

In the second quarter of 2026, Magazine Luiza posted a net loss of R$ 72.5 million, widening by 197.5% from a loss of R$ 24.4 million in the same period of 2025. The adjusted net loss was R$ 50.4 million, compared with an adjusted profit of R$ 1.8 million a year earlier. EBITDA slipped 1.7% year over year to R$ 675.3 million, while adjusted EBITDA fell 2.5% to R$ 708.8 million.