Magazine Luiza stock returns to adjusted profit as sales accelerate

Magazine Luiza returned to adjusted profitability in the third quarter, while higher financing costs and one-off charges kept reported earnings in the red. Valor Investe reported the results on Monday, November 9, 2026, after the company released its third-quarter figures.

Adjusted profit returns

Magazine Luiza posted a net loss of 10.7 million Brazilian reais for the July-to-September period, reversing net income of 84.6 million reais a year earlier. Adjusted net income reached 13.9 million reais, down 34.6 percent year over year, marking a return to adjusted profitability after losses in the first two quarters.

Net revenue fell 0.9 percent to 8.9 billion reais, while total sales declined 3.6 percent to 14.6 billion reais. The company attributed the reported deterioration to financial expenses in a high-interest-rate environment and nonrecurring items including tax and civil-risk provisions and restructuring costs.

Stores offset online pressure

Physical-store sales rose 10 percent in the quarter, helping cushion a 9.8 percent decline in total e-commerce. The trend improved late in the period: store sales increased 12 percent in September and 16 percent in October, compared with 8 percent growth from January through August.

First-party online sales also turned higher, gaining 5 percent in September and 14 percent in October after falling 12 percent during the first eight months. The company has expanded arrangements with Shopee, Mercado Livre and Amazon, alongside earlier partnerships.

O Globo reported that management expects robust sales during Black Friday and the Christmas season, but the company did not publish a numerical forecast. Investors therefore face a recovery case that depends on sustained physical-store momentum and a durable improvement in digital demand.

Brazilian retail position

Magazine Luiza is a Brazilian omnichannel retailer selling appliances, furniture, electronics and other durable goods through stores and digital channels. Its wider portfolio includes Netshoes, KaBuM! and Época Cosméticos, while Magalog supports logistics. The company competes most directly with Casas Bahia in durable goods and also faces marketplace competition from Mercado Livre and Shopee. O Globo described Casas Bahia as the main rival and said the current disruption at that retailer has created an opportunity for Magazine Luiza to gain share.

Magazine Luiza at a glance

• Company: Magazine Luiza S.A.
• Ticker: MGLU3
• Business: Brazilian omnichannel retail, digital commerce and logistics
• Third-quarter period: July through September 2026
• Reported net result: Loss of 10.7 million Brazilian reais
• Adjusted net result: Profit of 13.9 million Brazilian reais

Brazil's retail backdrop can be followed through the Bovespa market overview.