C&A (CEAB3): XP expects strong balance in 2T25, but two factors can overshadow results

The second quarter balance season of 2025 (2T25) approaches and the XP Investments expects a delivery of strong results by HERE (CEAB3). However, analysts Danniela Eiger and Laryssa Sumer point out that high expectations can overshadow the numbers of the fashion retailer.

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Analysts predict C&A present Solid Sales Trends from the same store (SSS), while margins should continue to improve, supported by the product mix and less provisioning at C&A Pay.

It is scheduled for August 6 to release the company’s balance for the second quarter of this year.

What to expect from C&A 2T25

XP analysts estimate that consolidated net sales increase by 11% over the previous year, driven by strong clothing dynamics, which continues to compensate for optimization of optimization fashionontronics (the line of electronics marketed by the retailer).

Although they expect the clothing industry SSS to be below the consensus of investors of 18% or more, they consider this number solid and consistent.

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“As for financial services, we hope they will remain an obstacle to revenue growth (-24%), as C&A continues to focus on profitability,” analysts say.

The consolidated gross margin should increase 0.9 percentage point (PP) compared to the previous year, estimates the house, driven by the product mix and price increase.

Analysts draw attention to two opposite effects in the quarter:

• the sale of the portfolio of Bradescard for R $ 154 million;
• A non-cashew expense of about R $ 35 million related to the ILP plan (long-term incentive).

“Excluding these effects, we estimate that the EBITDA margin (profit before interest, taxes, depreciation and amortization) has increased by 1.4 pp, positively impacted by lower C&A Pay credit losses. As a result, adjusted net profit should be $ 110 million,” says XP.