Riachuelo (formerly Guararapes, GUAR3) posted record operational results for the third quarter of 2026—but both net income and EBITDA fell short of market expectations during a period when fashion retailers are still battling high interest rates and indebted households.
What Happened to RIAA3 in 3Q26?
RIAA3 shares—representing Riachuelo, owner of the namesake department stores and Midway Financeira—released their economic and financial data for the third quarter on November 9, 2026. Net income reached R$ 85 million, up 61.3% compared to 3Q25 on a comparable basis, which excludes the numbers for Midway Mall (sold in December 2025). Consolidated EBITDA reached R$ 405 million with a margin of 16.2%, a record for a third quarter. The catch: the Bloomberg analyst consensus projected net income of R$ 96 million and EBITDA of R$ 435 million, meaning both figures came in below expectations.
| Indicator | Bloomberg Consensus | 3Q26 Actual | Variance |
|---|---|---|---|
| Net income | R$ 96M | R$ 85M | −11.5% |
| EBITDA | R$ 435M | R$ 405M | −6.9% |
| EBITDA margin | — | 16.2% | +0.7 pp vs 3Q25 |
A common question among new investors is whether RIAA3 is the same stock that traded as GUAR3 (Guararapes Confecções) until February 2026. The company adopted the ticker of its primary brand as part of a brand identity repositioning. If the stock seemed to disappear from your brokerage account, simply search for RIAA3: it is the same asset with the exact same shareholder rights, just under a new code.
What Riachuelo Did Well: 13 Consecutive Quarters of Apparel Growth
The apparel segment drove the results. Net revenue for the category grew 8% to R$ 1.6 billion, and the gross margin hit 58.1%—a third-quarter record and the 12th consecutive quarter of expansion. Same-store sales (SSS) rose 6.5%, marking the 13th straight quarter of growth, a trajectory that sets Riachuelo apart from fashion retail competitors that have had to revise their revenue targets.
On a consolidated basis, Merchandise EBITDA reached R$ 279 million (+8.9% vs. 3Q25) with a margin of 15.4%, the highest level for a third quarter in twelve years. Financial Services (Midway Financeira) contributed R$ 126 million (+5.8%). Together, the two segments account for the exact R$ 405 million in consolidated EBITDA.
Trailing twelve-month net income reached R$ 560 million, an all-time high for the period. For the first nine months of 2026, net income totaled R$ 258 million, nearly doubling (+98.3%) the R$ 130 million reported in 9M25. Leverage also improved: net debt stood at R$ 1.3 billion, with a net debt-to-EBITDA ratio of 0.8x—down from roughly 3x three years ago—which opens room for investment cycles without putting acute pressure on cash flow.
The Risk Highlighted in the Filing: Rising Delinquencies in Financial Services
Midway Financeira, the credit arm accounting for nearly a third of total EBITDA, revealed the metric that warrants the closest attention: the 15-to-90-day delinquency rate rose to 7.6% in 3Q26, up from 6.8% in the same period of 2025. The company attributed the move to a challenging macroeconomic environment and the election period. The Riachuelo credit card caters primarily to lower- and middle-income households, the segment most sensitive to high interest rates and consumer indebtedness.
The company stated that these indicators remained "within established parameters" and highlighted the "quality of the credit portfolio and rigor of risk management." However, the upward trend in delinquencies is the primary risk to monitor. Segment EBITDA grew 5.8%, well below the 8.9% pace of the merchandise division. Should delinquencies climb further, additional provisioning is likely to squeeze the segment's earnings in upcoming quarters, even if the apparel retail business remains strong.
Why Are RIAA3 Shares Still Falling Despite Growing Earnings?
On November 9, 2026, RIAA3 traded at R$ 6.79—42.9% below its 12-month high of R$ 11.90. A price-to-earnings ratio of 2.2 and an EV/EBITDA of 1.5 suggest the stock is cheap based on fundamentals, but a discount does not automatically turn into a rally. According to the RIAA3 stock analysis dashboard, the estimated fair value reaches R$ 19.84 with low confidence, reflecting the difficulty of modeling a company whose margins still fluctuate considerably from quarter to quarter.
The earnings miss adds short-term pressure because the market had priced in expectations the company failed to meet. In a high-interest-rate environment, similar to grocery retail which continues to face stagnant sales, high capital costs and squeezed consumers weigh on both demand and analyst projections. Third-quarter results confirm that the operational thesis remains intact—margins are improving, debt is falling, and sales are growing. What remains unresolved is when the market will price in this improvement instead of continuing to sell off.
For existing unitholders: trailing twelve-month earnings per share reached R$ 3.05, meaning the stock trades at 2.2 times its earnings over the period. The 12-month dividend yield stood at 48.8% (R$ 3.31 per share in distributions), partially inflated by the drop in the stock price. The company distributes interest on equity (JCP) quarterly—unlike real estate funds, which pay monthly—with the most recent payment of R$ 0.0597 per share having an ex-date of October 1, 2026.
What to Watch in Coming Quarters
Financial Services Delinquency — The 15–90 day index stands at 7.6%. If it exceeds 8%, additional provisions will likely squeeze segment EBITDA, even with apparel performing well.
Apparel SSS in 4Q26 — Riachuelo enters its seasonally strongest quarter with 13 consecutive quarters of growth. Breaking this streak would be a warning sign, while maintaining double digits would confirm acceleration toward year-end.
CAPEX versus Cash Generation — According to market analysts, 3Q26 investments exceeded the quarter's EBITDA. Monitor whether free cash flow recovers or if debt climbs back above 0.8x EBITDA.
Earnings Conference Call (Nov 10) — Held in Portuguese with simultaneous translation; CEO commentary regarding year-end demand and expansion plans tends to move the stock price on the same day.