BRAZIL · COMPANIES
Key Facts
- The company Magazine Luiza, known as Magalu, is a Brazilian retailer with physical stores, an online shop and a marketplace.
- The result It lost R$10.7 million (about US$1.9 million) in the quarter, after an R$84.6 million profit a year earlier.
- The one-offs Without one-off items, profit was R$13.9 million (about US$2.5 million), down 34.6% from a year earlier.
- The trend Store sales rose 10.0% in the quarter, while total e-commerce sales fell 9.8%.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
Magazine Luiza, the Brazilian appliance and electronics retailer known as Magalu, posted a small loss in the third quarter of 2026. The company reported a net loss of R$10.7 million (about US$1.9 million) on Monday 9 November 2026, after a profit of R$84.6 million (about US$15 million) a year earlier.
For US readers, the numbers matter less than the direction. Magalu says its store sales sped up to 16% growth in October, and it now sells on Amazon and MercadoLibre, two US-listed platforms, to reach more shoppers.
What Happened
The loss comes from one-off items. Charges for legal and tax risks (R$18.2 million, about US$3.3 million), restructuring (R$4.6 million, about US$0.8 million) and rent for earlier periods (R$15.0 million, about US$2.7 million) pushed the accounting result below zero.
Without those items, the company earned R$13.9 million (about US$2.5 million), down 34.6% from R$21.2 million (about US$3.8 million) a year earlier. Over nine months the accounting result is a loss of R$138.4 million (about US$25 million), against a profit of R$73.0 million (about US$13 million) in the same period of 2025.
Net revenue was R$8.94 billion (about US$1.62 billion). Adjusted EBITDA, which is operating profit before depreciation and one-off items, was R$710.1 million (about US$129 million), almost unchanged from R$711.4 million (about US$129 million) a year earlier.
On the accounting basis, EBITDA fell 14.8% to R$687.9 million (about US$125 million). We convert reais at about 5.51 per US dollar, the RT market rate on 10 November 2026.
Stores Up, Online Down
Total sales, including products from outside sellers on its marketplace, were R$14.6 billion (about US$2.65 billion), down 3.6%. Physical stores grew 10.0%, with same-store sales up 9.5%, while total e-commerce fell 9.8%.
Magalu links the online decline to its focus on profit over volume. It says the fall eased through the quarter, with sales of its own online stock of durable goods growing 5% in September and 14% in October.
Why October Matters
The company says store sales growth moved from 8% in January to August to 12% in September and 16% in October. It credits problems at major rivals and store closures by competitors in durable goods such as fridges, washing machines and furniture.
Magalu says it began selling on Amazon Brazil in June and on Mercado Livre, the Brazilian arm of MercadoLibre, in September. A similar deal with Shopee, a Singapore-based online marketplace, was announced about a month before the results, without exclusivity, and its logistics arm Magalog makes the deliveries.
What It Means for You
If you follow Brazilian consumer stocks, this report separates a bookkeeping loss from stores whose sales are growing again. The shares closed at R$5.84 (about US$1.06), giving Magalu a market value of R$4.5 billion (about US$0.82 billion).
Shoppers and expats in Brazil may notice more Magalu products on Amazon, Mercado Livre and Shopee ahead of Black Friday. The company built up R$378 million (about US$69 million) of extra stock for Black Friday and Christmas.
Cash, Credit and Debt
Magalu ended the quarter with a total cash position of R$5.7 billion (about US$1.03 billion) and generated R$332.5 million (about US$60 million) from operations. It repaid R$1.0 billion (about US$181 million) of bonds in October.
Its credit-card business, Luizacred, earned R$77.8 million (about US$14 million), up 14.4%. Magalu’s own payments arm earned R$32.3 million (about US$5.9 million).
What Is Not Known
The company has not given a profit forecast for the fourth quarter. It is also unclear whether the October sales surge will last once rivals recover.
The investor call was scheduled for Tuesday 10 November 2026 at 09:00 Brasília time (07:00 Eastern), and comments made there are not part of this report. The release alone shows how long the sales rebound can last.
More: Brazil news in English, every day from The Rio Times. See also our report on Brazil’s interest-rate debate.
Frequently Asked Questions
How Much Did Magazine Luiza Lose in Q3 2026?
The net loss was R$10.7 million (about US$1.9 million), against a profit of R$84.6 million a year earlier. One-off charges caused the swing.
What Was Magalu’s Profit Without One-Offs?
Adjusted profit was R$13.9 million (about US$2.5 million), down 34.6% from a year earlier. Adjusted EBITDA was R$710.1 million (about US$129 million).
Are Magalu’s Stores Growing?
Yes. Physical store sales rose 10.0% in the quarter, and the company says growth reached 16% in October.
Where Else Does Magalu Sell Its Products?
Since June it has sold its own stock on Amazon Brazil, since September on Mercado Livre, and a deal with Shopee was announced in October. None of the deals is exclusive.
Sources: Magazine Luiza investor relations, Third Quarter 2026 Results Release (Divulgação de Resultados 3T26), 9 November 2026; RT, USD/BRL market rate, 10 November 2026.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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