Vivara Q1 Profit Falls 30% as Gold Costs Hit LATAM’s Top Jeweller

Vivara Participações (B3: VIVA3), Latin America’s largest jewellery chain with approximately 400 stores, reported Q1 2026 net income of R$80.8 million ($16M), down 30 percent year-on-year from R$115 million, according to the CVM filing released Thursday May 7.

Adjusted EBITDA dipped 1.5 percent to R$129.1 million ($25.6M) despite net revenue growing 10.8 percent to R$595 million ($118M), as rising gold and silver input costs compressed margins that the company could not fully pass through to consumers in a Selic-pressured environment.

Physical store revenue grew 12.9 percent to R$647.9 million, with the core Vivara brand up 11 percent and the Life by Vivara (silver/fashion jewellery) brand surging 19 percent, per the filing.

Gross profit improved to R$416 million as revenue scale partially offset cost pressures. Leverage fell to 0.3x from 0.5x, confirming the company’s near-debt-free balance sheet. Founder Nelson Kaufman continued increasing his stake in the company.

Key Points

What Vivara Did in Q1 2026

Vivara is Latin America’s largest jewellery chain, founded by the Kaufman family and listed on B3 since 2019 as the first jewellery retailer on the Brazilian exchange. The company operates two brands: Vivara (fine jewellery, gold, diamonds) and Life by Vivara (silver and fashion jewellery targeting younger consumers at accessible price points). With approximately 400 stores and a vertically integrated manufacturing operation, Vivara controls the full chain from design through retail. The company’s 2026 guidance of 55–65 new store openings reflects continued confidence in physical expansion despite the challenging macro environment.

The 30 percent profit decline amid 10.8 percent revenue growth reveals the input cost squeeze: gold prices surged above US$3,000 per ounce in Q1 (driven by central bank buying and geopolitical demand), inflating Vivara’s primary raw material cost. The Q1 2025 base also included elevated ICMS tax credits that boosted the prior-year comparison. Excluding these base effects, the underlying margin compression from gold and silver price inflation is the structural issue — one that Vivara can partially offset through pricing increases and mix shift toward Life (which uses less gold per unit) but cannot fully neutralise when consumer sentiment is dampened by 15 percent Selic, per analyst commentary. Founder Nelson Kaufman’s continued stake increases signal insider confidence in the long-term thesis.

Why It Matters and What Happens Next

Vivara is the luxury consumer datapoint within Brazilian retail. While Magalu’s loss reflects mass-market e-commerce weakness, Vivara’s 30 percent profit decline shows that even the premium segment is not immune to the combination of input cost inflation and Selic-constrained consumer spending. The Life brand’s 19 percent growth is the positive signal — the faster-growing, lower-price-point brand is less gold-intensive and targets a younger demographic more willing to maintain discretionary spending. The near-debt-free balance sheet (0.3x leverage) provides significant financial flexibility that leveraged retailers lack.

Looking forward, the 55–65 new store guidance for 2026 represents approximately 14–16 percent network expansion — an aggressive pace that signals management expects underlying demand to remain strong despite the margin headwinds. Gold price trajectory is the key variable: if prices stabilise or decline from the Q1 peak, margin recovery is achievable; if gold continues its ascent toward US$5,000+ (as it has subsequently done), Vivara’s pricing power will be tested further. The Latin American jewellery market remains structurally underpenetrated compared to developed markets, providing Vivara with a long-term growth runway regardless of near-term margin volatility.

Vivara Q1 2026 Snapshot

Frequently Asked Questions

Why did Vivara’s profit fall 30% despite revenue growth?

Rising gold and silver prices inflated Vivara’s primary raw material costs, compressing margins that the company could not fully pass to consumers under 15 percent Selic conditions. The Q1 2025 comparison also benefited from elevated ICMS tax credits that were not repeated. Revenue grew 10.8 percent to R$595 million, but the cost squeeze drove the bottom-line decline.

What is the Life by Vivara brand?

Life by Vivara is the silver and fashion jewellery brand targeting younger consumers at more accessible price points. It grew 19 percent in Q1 versus 11 percent for the core Vivara gold jewellery brand, and is less exposed to gold price inflation due to its silver-dominant material composition.

Is Vivara still expanding?

Yes. Vivara guides for 55 to 65 new store openings in 2026, representing 14 to 16 percent network expansion from the current approximately 400 stores. The near-debt-free balance sheet with 0.3 times leverage provides ample capacity for expansion without requiring external financing. Founder Nelson Kaufman continues increasing his personal stake.

Updated: 2026-05-08T17:00:00-03:00 by Rio Times Editorial Desk

Vivara Q1 2026 | VIVA3 earnings | Brazil jewellery Life brand gold costs | Latin American financial news | The Rio Times

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