Casas Bahia Lifts Sales And Cash Flow, But Debt Costs Keep Losses Deep

Casas Bahia closed the third quarter with stronger sales and tighter operations, yet still posted a wider loss as financing costs weighed on results.

The retailer reported a net loss of R$496 million ($92 million), compared with R$369 million ($68 million) a year earlier, even as shoppers bought more across stores and digital channels.

Total merchandise volume rose 8.5% to R$10.5 billion ($1.94 billion). Physical stores delivered 5.9% GMV growth with same-store sales up 7.8%.

E-commerce advanced 12.7% for a fourth straight quarter, powered by first-party sales up 9.2% and marketplace activity up 17.7%; marketplace revenue grew 19% on a 13.2% take rate. Net revenue increased 7.3% to R$6.9 billion ($1.28 billion).

Profitability metrics moved the right way. Adjusted EBITDA reached R$587 million ($109 million), up 20%, with an 8.5% margin, and EBIT climbed 57% to R$282 million ($52 million).

The trade-off was a lower gross margin at 30.0% versus 31.6% last year, reflecting mix and competitive pricing, partly offset by leaner overheads as SG&A fell to 22.5% of net revenue.

Cash generation improved. Liquidity ended at R$3.0 billion ($556 million) and free cash flow was psositive at R$488 million ($90 million).

The company monetized R$163 million ($30 million) in tax credits during the quarter and R$862 million ($160 million) year-to-date, while labor claims dropped to R$55 million ($10 million).

To reduce funding costs, Casas Bahia is leaning on receivables vehicles (FIDCs) and other refinancing steps. Credit remains both a growth lever and a sensitivity.

The in-house portfolio rose to R$6.2 billion ($1.15 billion), with 90-day-plus delinquency at 8.4% and net credit loss at 4.5%.

Credit sales accounted for 27% of store transactions and 8% online. A new commercial tie-up with Mercado Livre aims to widen reach and speed delivery in large-ticket categories.

Why this matters: the company is selling more and running leaner after a painful reset. If financing costs ease and credit quality holds through Black Friday and year-end, operational gains are more likely to show up in net profit—good for consumers, suppliers, and long-term investors looking for discipline over grand promises.

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