BRAZIL · COMPANIES
Key Facts
- The company Riachuelo is one of Brazil’s biggest fashion chains, owned by Guararapes, listed in São Paulo.
- The profit Net profit was R$84.9 million (about US$15 million) in July to September 2026, up 61.3%.
- The sales Net revenue rose 3.5% to R$2.51 billion (about US$450 million); apparel sales rose 8%.
- The strain Store-card loans more than 90 days overdue rose to 19.4% from 17.7% a year earlier.
- Prediction markets Polymarket, a prediction market, gives 90.5% to no Brazil rate change in December (11 Nov, 3:41 a.m. ET).
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
Brazil’s shoppers are still buying clothes, but more of them are falling behind on their store-card bills. Riachuelo, one of the country’s biggest fashion chains, reported on Monday 9 November 2026 a third-quarter profit of R$84.9 million (about US$15 million).
For US readers, the result is a close look at the Brazilian consumer under high interest rates and heavy household debt. We convert reais at about 5.58 per US dollar, the market rate on 11 November.
What Happened
Guararapes Confecções, the company behind Riachuelo, said net profit rose 61.3% to R$84.9 million in the quarter from July to September. The growth rate uses a like-for-like base that leaves out the Midway Mall, a shopping centre the group sold in late 2025.
Last year’s profit included income from that mall, so the 61.3% is a like-for-like comparison. A comparison with the unadjusted figure would show a smaller gain.
Net revenue reached R$2.51 billion (about US$450 million), up 3.5%. EBITDA, earnings before interest, tax, depreciation and amortisation, rose 7.9% to R$405.4 million (about US$73 million), a record for a third quarter.
Where the Growth Came From
Apparel revenue grew 8% to about R$1.61 billion (about US$288 million). Sales in stores open for at least a year rose 6.5%, the 13th straight quarter of growth, but slower than the 7.3% of a year earlier.
The gross margin on apparel hit 58.1%, up 0.8 percentage points and the highest the company has recorded for a third quarter. The net margin improved to 3.4% from 2.2%.
The Credit Card Side
Riachuelo also lends money. Its financial arm, called Midway, earned net revenue of about R$690 million (about US$124 million), up 11.7%, and EBITDA of R$126.4 million (about US$23 million), up 5.8%.
Store-card loans more than 90 days overdue climbed to 19.4% from 17.7% a year earlier. Provisions for credit losses, money set aside for loans that may not be repaid, rose 20.3% to R$336.5 million (about US$60 million).
Net debt, which is what the company owes after subtracting its cash, stood at about R$1.35 billion (about US$242 million), or 0.8 times 12-month EBITDA. Cash was close to R$1.13 billion (about US$202 million), more than the debt due in the short term.
What Prediction Markets Say
Polymarket, an online prediction market, shows 90.5% for no change in Brazil’s central bank interest rate in December, 6.2% for a 0.25-point cut and 1.4% for a cut of 0.5 points or more. About US$69,526 has been traded on that market, read on 11 November at 3:41 a.m. ET.
Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
What It Means for You
If you follow Brazilian consumer stocks, Riachuelo shows steady demand but growing credit stress. The company’s president, André Farber, said sales are slowing and that he is watching the economy “with caution” because of high interest rates, inflation and household debt.
A central bank that holds rates, as the market expects, would keep borrowing costs high for Brazilian families. The central bank’s next rate decision is due on Wednesday 9 December 2026.
What Is Not Known
It is not known whether late payments on store cards will keep rising into the Christmas shopping season. It is also unclear how consumers will behave through the final months of 2026.
It is not known how well the group can hold its margins if consumption keeps cooling. The company has not said how much of the profit gain will last.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What Is Riachuelo?
Riachuelo is one of Brazil’s biggest fashion chains, run by Guararapes Confecções, which is listed on the São Paulo exchange. It also lends to shoppers through its financial arm, Midway.
How Much Did Riachuelo Earn in the Third Quarter?
Net profit was R$84.9 million (about US$15 million) for July to September 2026. That is up 61.3% on a like-for-like basis that leaves out the Midway Mall, a shopping centre sold in late 2025.
Are Riachuelo Customers Falling Behind on Payments?
Loans more than 90 days overdue rose to 19.4% from 17.7% a year earlier. Provisions for credit losses grew 20.3% to R$336.5 million (about US$60 million).
Is Consumer Demand in Brazil Weakening?
Sales in stores open for at least a year grew 6.5%, slower than 7.3% a year earlier. The company’s president says high rates, inflation and household debt make the climate harder.
Sources: Guararapes Confecções, third-quarter 2026 results (investor relations), 9 November 2026; RT, a market-data provider, USD/BRL exchange rate, 11 November 2026; Polymarket, Brazil central bank decision in December, 11 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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