Under the leadership of André Farber, the first CEO from outside the Rocha family, founders of the company, Riachuelo is moving towards a new growth cycle after a restructuring that restored traction to the business. With strong results, the company is now combining physical expansion, store modernization, and a move in the capital markets to support the next phase.
In an interview with the program Call de Negócios, a partnership between NeoFeed and CNN Brasil, which premiered on Tuesday, April 7th, on CNN Money, Farber highlighted that the company's focus is on execution. "We reduced the number of initiatives and began to concentrate our efforts on what truly improves the customer experience and the product," he stated.
In the fourth quarter of 2025, the company recorded a net profit of R$ 322 million, a 28.8% increase, with revenue of R$ 3.2 billion and EBITDA of R$ 660 million. For the full year, profit reached R$ 512 million, more than double the previous period, consolidating the best performance in its history.
According to Farber, the improvement reflects a more disciplined operation. Over the past few quarters, the company has simplified initiatives, better integrated its business lines, and started capturing more consistent margin gains.
Although she acknowledges the retailer's positive momentum, Danniela Eiger, a retail analyst at XP, sees room for improvement. "The company has been showing consistent improvement in productivity and margins, but there is still potential for growth, especially in sales per square meter and in capturing operational efficiency," she said.
The company had considered the possibility of a follow-on offering of up to R$ 500 million to increase its free float and attract new investors, but opted to halt this plan due to economic uncertainties.
Even without these resources, the company has near-zero leverage and intends to accelerate already mapped-out investments, such as opening 15 to 20 units per year, modernizing logistics, and renovating stores.
The focus on physical retail is a strategy to compete with global players like Shein and Shopee. "In fashion, experimentation is still very relevant. The customer wants to touch, try on, and take the product home right away," said Farber.
The CEO also bets on its own manufacturing as another key differentiator. Owner of the largest fashion factory in Latin America, in Rio Grande do Norte, Riachuelo believes that vertical integration helps to gain speed, shorten production cycles and have greater control over quality and costs.
“The factory is an essential pillar of our strategy. It provides speed, quality, and competitiveness to our business,” said Farber.
The company has been using artificial intelligence in processes such as quality control, pricing, and customer service, with a direct impact on operational efficiency and margins.
In the interview, Farber also emphasized that he believes in discipline and consistency to keep the company "moving" and sustaining results. For him, leadership requires not only execution, but continuous energy to avoid complacency. This is the mindset that should guide Riachuelo's next steps.
*This article was updated on April 9th with the information that the company has decided not to proceed with the follow-on offering.
