Company Profile

The Guararapes Group is one of the largest in the fashion industry in Brazil, distinguished by its fully integrated business model. Through a vertically structured value chain that encompasses industrial manufacturing, retail operations, and financial services, the Group achieves significant efficiency gains, operational agility, and competitive strength across all business fronts.

For more than seven decades, the Company has been shaping the Brazilian fashion scene. Its fully verticalized business model is structured across three core segments:

(i) Retail:

(a) A brand platform comprising the retail chains Riachuelo, Casa Riachuelo, Carter’s, and FANLAB, with a total of 435 physical stores across Brazil, complemented by a robust e-commerce operation that includes both private label brands and a third-party marketplace;

• Logistics is a fundamental strategic pillar of this segment. To support nationwide operations, the Company operates three Distribution Centers (DCs) located in Guarulhos (SP), Natal (RN), and Manaus (AM), in addition to its own freight company, Transportadora Casa Verde.

(ii) Midway Financeira: an integrated platform for financial products and services; and (iii) Midway Mall, located in Natal (RN).

Since its foundation, the Company has consistently pursued maximum integration across its operations—from product development to final delivery—supported by a team committed to democratizing fashion in Brazil. The Company’s corporate headquarters is located in the Industrial District of Natal (RN), with its administrative headquarters in São Paulo. In 2013, it expanded its global sourcing capabilities by opening a commercial office in Shanghai, China.

In recent years, the Company has optimized its value proposition, focusing on unlocking the full potential of its core business, bringing greater assertiveness and quality in the offer of its products. The journey has been driven by a continuous pursuit of innovation and new technologies, along with a strong commitment to sustainability, which guides the business, transforming fashion into an asset that generates value for its entire chain.

And for the third consecutive year, Guararapes was selected to join B3’s Corporate Sustainability Index (ISE) Portfolio. This achievement reinforces the consistency and seriousness with which the Company has advanced with regard to environmental, social, transparency and governance issues in its ESG agenda, and  demonstrates the Company’s focus on creating more sustainable fashion, as presented in its Integrated Report.

Lojas Riachuelo

Riachuelo, a company in the retail sector, was acquired in April 1979 with the objective of promoting the integration between retail and production.

Riachuelo proposes to facilitate access to fashion, bringing it to the consumer with agility and quality, for a fair price. To this end, it researches, develops and distributes the novelties of the catwalks and streets at the speed that the world asks for and that customers deserve. In addition, it seeks to bring quality products with personality, to be a reference in the retail of women’s, men’s and children’s fashion.

Thus, the Guararapes factory began to direct most of its production to Riachuelo, which was developed with greater intensity from 2005 onwards, and since 2008, the entire production of the factory has been destined to the Group’s store network, which is present throughout the national territory.

With the strength of the Carter’s brand, Riachuelo reinforced its position in the baby and early childhood clothing segment, a market that is currently served by small chains of regional expression in Brazil. Carter’s has a strong synergy with Riachuelo’s value proposition, since both offer quality products with a great cost-benefit ratio.

Having the exclusivity of the brand in Brazil makes this partnership an important anchor for the Company’s digital channel platform, by creating an environment that involves all categories related to maternity, which is even more complete with the entry of the marketplace, with the offer of clothing, layettes, FMCG (Fast Moving Consumer Goods)), childcare lines, among other products and services that expand the relationship with the customer and the frequency of purchases.

Casa Riachuelo offers a differentiated shopping experience, with pieces that bring the latest trends from different lifestyles to dress the Brazilian home. With Casa Riachuelo, the Company offers customers the right mix of products, competitive pricing and financial services, all in an omnichannel experience.

FANLAB is a brand specialized in fans of series, books, movies and games, in an independent operation, present in the physical and digital environment, with a dedicated e-commerce. Its portfolio includes clothing, accessories, collectibles, decoration, home fashion, pet world and special collections from brands such as Harry Potter, Marvel, DC, Looney Tunes and Free Fire.

Midway Mall and Properties

Midway Mall and Owned Real Estate In addition to the integrated retail and financial business model, the Group owns Shopping Midway Mall and real estate.

In 2005, the Company inaugurated the Midway Mall in Natal – RN, which has 235.9 thousand m2 of gross built area, and a gross net area (GLA) of 63.2 thousand m².

In December 2022, Midwest Estacionamento Ltda. was founded, with the objective of managing the parking lot of Shopping Midway Mall.

At the end of 2024, Riachuelo had a portfolio of 48 stores installed in properties belonging to the Group, a total of 124.6 thousand m² in sales area. Considering the area of its own properties (Midway Mall and stores), together with the Natal distribution center, the industrial production plants and the call center, the Company has approximately 723 thousand m² in gross built area.

Transportadora Casa Verde

Transportadora Casa Verde, a company in the road transport sector, is responsible for part of the Group’s logistics. Due to the investments made in recent years, mainly in technology, it has been able to regularly deliver the products manufactured by the Company to Riachuelo stores effectively.

History

The Guararapes Group, today recognized as one of the Best Companies in the Textile Sector in the Industry Category of Exame Magazine, as well as one of the largest employer brands in the country, began its legacy in 1947, by the brothers Nevaldo and Newton Rocha, with the opening of its first fabric store “A Capital”, in Natal – RN.

After 4 years of exercise, the first business of the brothers Nevaldo and Newton Rocha was expanded to Recife – PE, with the implementation of a fabric manufacturing company, as well as the acquisition of several commercial points.

In October 1956, the Company was founded in Recife – PE. After 2 years, the first factory was inaugurated in Natal – RN, with a built area of 2,700m², consequently, transferring its headquarters to the same location.

In the early 1970s, the Company went public, with the consequent construction of the factories in Fortaleza – CE in 1976, with 9,800m² of built area and in Mossoró – RN, as well as the creation of the Super G chain of stores.

Em 1979, a Guararapes adquiriu a Lojas Riachuelo e a Wolens, expandindo sua atuação para o varejo têxtil, área responsável pelo maior crescimento da Companhia nos últimos anos.

Also in 1979, Guararapes Têxtil was inaugurated in Natal – RN, with 40,000m² of built area.

In 1980, Transportadora Casa Verde was founded, a company in the road transport sector, responsible for part of the group’s logistics and whose activity is to transport the products and materials of the Company and Lojas Riachuelo.

In 1982, the Pool brand was launched, idealized by Flávio Rocha, becoming a fashion icon in the 1980s, in addition to being the main sponsor of the driver Ayrton Senna at the beginning of his career, when he competed in the Kart and Formula-3 categories.

Later, in 1983, there was the incorporation of Seta and Wolens stores by Riachuelo.

Ten years later, in 1993, the Guararapes Group went through a process of modernization and restructuring.

In 1997, the manufacturing unit in Natal – RN, responsible for the production of knitting and part of the shirting, was expanded, and had a built area of 150,000m². In parallel, the manufacturing unit in Fortaleza – CE, became responsible for the production of flat fabrics such as twill, jeans and shirts.

From 2005 onwards, the Company’s manufacturing units began to allocate more relevant amounts of parts produced to Lojas Riachuelo, until, in 2008, all production began to be directed to the Group’s store network. The products produced by Guararapes play a fundamental role for the Group, ensuring quality, agility, reactivity and better social and environmental control of the chain.

In addition to the existing enterprises, the Company also invested in research, creation, development and the distribution process, which are fundamental for the evolution of its integrated business model, seeking efficiency between product development and delivery to stores. To this end, it improved the logistics of operations and in 2000, the Company inaugurated its first distribution center (“DC”) with 58,000 m², located in Natal – RN.

In addition to the relationship between retail and factory, the Company maintains the integrated management of its financial operation: Midway Financeira. Created in 2008, Midway Financeira aims to carry out financing operations for consumers of products and services, seeking the most appropriate financial resources to support such transactions.

In 2010, the operations of the Flag Card began, and the Company inaugurated the Riachuelo Theater, in Natal – RN.

Crossing borders, the Company opened an office in the city of Shanghai – China in 2013 to mediate trade negotiations.

In the following years, the Company resumed its focus on improving the logistics of its operations and inaugurated two other DCs, one in Guarulhos – SP (with 100,000 m²) and another in Manaus – AM (with 6,000 m²). In 2015, the Company began investments in the Guarulhos DC, which enabled the migration of automated logistics of 100% of the apparel mix, with control by Stock Keeping Unit (“SKU”), presenting the number of pieces in stock according to their characteristics, such as category, size, collection, which was inaugurated in 2016, being an important step towards the development of the fast fashion concept in the Company. The DCs of Natal and Guarulhos have inventories and integrated operations for both physical and digital channels.

Also in 2015, the Company began to carry out cell phone sales operations and, in 2016, started perfumery operations.

Aiming at further expansion of the business, in 2020, the Company inaugurated two new store formats: Casa Riachuelo and Carter’s. With Casa Riachuelo, the Company offers customers pieces that bring the latest trends in different lifestyles to dress the Brazilian home. At the same time, by acquiring the exclusivity of the Carter’s brand in Brazil, the Company reinforced its position in the early childhood clothing segment, expanding the relationship with the customer.

Also in 2020, during the COVID-19 Pandemic, the Company went through a digital transformation process, which took place transversally and went through some cycles: first, the Company retrained and updated its environments and systems to strengthen the technological base, support for its next steps. Then, it redesigned its technological architecture, bringing an integrated systemic view between its retail and financial businesses.

The year 2021 consolidated pillars and levers capable of bringing opportunities for revenue generation. In order to offer the best shopping experience to customers, the Company has adapted to their needs and prepared to serve customers in the channel they want, seeking to offer the best shopping experience within a retail and financial services ecosystem. To this end, it started to operate with integrated solutions such as e-store (infinite shelf), self-checkout and mobile POS in stores, among others.

Such tools are supported by omnichannel solutions  of great logistics efficiency, such as Pick Up in Store and Pick Up Fast, ship from store and strategically located distribution centers, with inventories and operations integrated between the physical and digital worlds. In addition, it also has a marketplace complementary to the omnichannel strategy, which reinforces the concept of lifestyle based on a curation of fashion and product, by brands and categories, which complete the offer of products offered by the Company.

Also in 2021, it inaugurated the “Loja do Amanhã”, in Jacarepaguá – RJ, a more sustainable point of sale model.

That same year, Midway launched the digital account, which reached the mark of 1 million openings in the first five months of operation. As a result, the Company has been expanding its relationship with its customers, going beyond offering cards and personal loans, offering products and services in digital channels with maximum integration with retail.

On December 22, 2021, B3 S.A. – Brasil, Bolsa, Balcão, “B3”, granted the Company’s request to migrate to the Novo Mercado and on March 30, 2022, the Company’s migration to this special listing segment was approved at an Extraordinary General Meeting. The migration to the Novo Mercado represents a milestone for the Company, reinforcing its commitment to high standards of corporate governance.

The Company’s common shares began trading on the Novo Mercado on April 5, 2022, a year marked by the 75th anniversary of the Company, which is currently one of the largest fashion groups in Brazil.

Also in 2022, the Company expanded its portfolio of brands and inaugurated FANLAB, a new business front specializing in the geek audience.

In 2023, the Company started to centralize its manufacturing production in Rio Grande do Norte, closing the activities of the plant in Fortaleza – CE. The Company’s integrated business model remains unchanged, and this decision is part of its strategic planning, with a focus on optimizing the manufacturing operation to intensify reactivity, efficiency and competitiveness, combined with sustainable growth.

Also in 2023, the Company’s Board of Directors approved the transition process for the position of Chief Executive Officer of the Company, appointing Mr. André Michel Farber, in succession to Mr. Oswaldo Aparecido Nunes. Mr. Farber’s appointment was an important step for the Group, a professional with extensive knowledge of the national market and expertise in omnichannel strategy, innovation and expansion.

In 2025, B3 authorized the Company to keep in free circulation, until December 31, 2026, shares representing at least 17.25% of its capital stock. At the end of the period, the percentage of 20% of shares in free circulation must have been reached, as provided for in B3’s Novo Mercado Regulation “Novo Mercado Regulation”.

Since its foundation, the Company has sought to direct all its efforts to achieving maximum integration between its operations, a fact that allows the Company to be the only player to integrate the three aspects of its business: retail, industry and financial. In addition to Riachuelo and Midway Financeira, the Group owns Shopping Midway Mall and Transportadora Casa Verde.

Timeline